NEW DELHI: The Cabinet today approved the formation of an independent rail regulatory authority to determine tariffs ensuring fair play and level playing field for private players keen on investment in the railways.
Considered to be the biggest and first-of-its-kind reform in the rail sector, setting up of Rail Development Authority (RDA) is meant to improve the services offered to passengers, provide comfort to investors and enhance transparency and accountability.
The RDA will be formed through an executive order of the Government, according to the cabinet decision.
It will make suggestions regarding policies for private investment to ensure reasonable safeguards to PPP investors and to resolve disputes over future concession agreements.
The need of having a rail regulator has been emphasised by various committees for past many years since 2001. This includes Expert Group under the Chairmanship of Rakesh Mohan in 2001, the National Transport Development Policy Committee (NTDPC) in 2014 and Bibek Debroy’s Committee in 2015. (AGENCIES)
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