Indian Railways News => Topic started by nikhilndls on Aug 03, 2013 - 08:00:16 AM


Title - Cabinet nod for Rail Tariff Authority
Posted by : nikhilndls on Aug 03, 2013 - 08:00:16 AM

Passenger fares are set to rise sooner than expected with the government deciding to institute a Rail Tariff Authority (RTA) through an executive order instead of losing precious time by taking the legislative route.On Thursday, while approving the RTA proposal, the Cabinet directed the Law Ministry to initiate the process through an executive order, underlining the urgency to improve the financial situation of the Railways forthwith without any delay.The government intends to get Parliament approval for RTA as that is a long drawn process that needs more than six months. By establishing the authority through an executive order, the government would be saving time and obtain the first ruling from the authority for raising passenger fares. It would not only be hastening the process of decision-making, but rake in more revenue in the process. The RTA has been mandated to completely do away with the subsidy component and cross-subsidy of passenger fares from surplus generated from freight business completely within 10 years.

The net loss in the passenger segment has been rising at a steep rate of 17.6 per cent and has mounted to a whopping Rs. 22,507 crore in 2011-12. With the Railways finding it difficult to meet even their operating expenses, there has been little or no progress on the development and growth front. To make the Railways self- sufficient, the Authority’s domain is to generate surplus funds for creating and maintaining rail infrastructure on a long term basis.

Obviously the Centre doesn’t want to entertain any requisition for grants from the Railways, which Railway Minister Mallikarjun Kharge intends to do later in the year to bear the cost of ongoing projects, making it clear that it was not in a position to bear the burden. The Railways have decided to increase coaches in most of its 7,000 passenger trains to increase its revenue without burdening the passengers.


Net loss in the passenger segment mounted to Rs. 22,507 crore in 2011-12

Railways to increase coaches in passenger trains to increase revenue without burdening passengers