RailEnquiry

The Union Cabinet has approved in-principle a proposal to set up Rail Tariff Authority (RTA) for fare rationalisation. But the final nod has been deferred for want of clarifications on various aspects like powers of the new body.The setting up of RTA will mainly de-link passenger fares from political process. The setting up of the body may lead to frequent hikes in rail fares.The Cabinet deliberated upon the proposal to establish the first-of-its-kind body that will suggest the level of tariff for both the freight and passenger fares from time to time taking into account the input cost (diesel and electricity) and volatile market conditions.However, some members of the Cabinet sought clarifications from the Railways Ministry on some aspects like the composition and powers that the proposed RTA will have, sources said.While in-principle approval was given for setting up the body, the final nod was withheld till the Railways Ministry provides with the clarifications,  sources said.