New Delhi: The formation of Rail Tariff Authority is to be concretised through a resolution of Railways and the independent body will have advisory role in deciding the passenger and freight tariff, Chairman Railway Board Arunendra Kumar said today.
The proposal to set up RTA, a move aimed at depoliticising passengers tariffs, was approved by the Cabinet on August 2.
“The process to constitute the RTA is already on and a final shape will come up in about a fortnight. The modalities are being worked with Law Ministry,” Kumar told.
Asked whether Law Ministry is seeking any clarification from railways about the powers of the proposed authority, Kumar said the “Law Ministry and Railways are on the same page on it.”
On whether the RTA will be a regulatory body or an advisory body, Kumar said “it will be a strong advisory body and it will be difficult to refuse its recommendation”.
He, however, said there is no need to go to Cabinet again or Parliament and it will be formalised through a resolution by railways.
“I think there is no need to go to Parliament or Cabinet …It will be done through a resolution,” Kumar said at the sidelines of a function.
The RTA will be a five-member body headed by a chairperson.
A search committee headed by Cabinet Secretary and comprising Chairman Railway Board and two more members will be formed to select the members of the RTA.
RTA, the first-of-its-kind body for the national transporter, will periodically suggest tariff levels for both freight and passenger fares taking into account input costs (diesel, electricity) and volatile market conditions.