Railways finalising Cabinet note on Rail Development

Authority New Delhi, Sep 20 (PTI) Stepping up efforts to have aregulatory mechanism to determine tariff, the railways is inthe process of finalising a Cabinet note to be taken up soonfor setting up the Rail Development Authority (RDA). The Authority will initially be set up through anexecutive order after the Cabinet’s approval and willsubsequently be strengthened through a legislation, said asenior Railway Ministry official. At present, the RDA proposal is being sent to differentministries, including Finance and Law, for inter-ministerialconsultation. The proposed Authority, a first-of-its-kind in therailways, will have four key functions, including fixing thefare structure. However, RDA set up through an executive order will haverecommending power and only after legislative approval, itsdecision will be mandatory in nature. Besides tariff determination functions, RDA will have toensure fair play and level playing field for privateinvestments in railways. Railways is wooing private players for development of itsinfrastructure, including laying new lines and stationredevelopment, across the country. RDA will also be responsible for setting efficiency andperformance standards and dissemination of information. Policy-making and operations and maintenance will not beunder the purview of RDA. As per the proposal, the Authority will dischargefunctions in a manner to protect the interest of consumers,ensuring quality of service, promoting competition,encouragingmarket development, efficient allocation of resources, providenon-discriminatory open access specially on Dedicated freightcorridor and to benchmark service levels for ensuring quality,continuity and reliability of service. Compliance with safety standards and practices, financialmanagement and setting up technical standards will be out ofthe Authority’s purview. The proposed RDA will consist of Chairman and fourmembers who have experience and knowledge in the railways,infrastructure, finance, law, management and consumer affairs.PTI ARU SMN RTSMN