'Rail Tariff Authority' to advise on rail fares approved
The Union Cabinet has approved establishment of an ad-hoc 'Rail Tariff Authority' for pricing of passenger and freight services.
- It will work as an advisory body through a government resolution till the amendment of the Railway Act, 1989.
- The above act needs to be amended to mandate the pricing of rail services to someone other than the Railway Board.
- The centre had to concede the desire of setting it up by an executive order due to the provision above.
- It will be a 5-member body, including a Chairperson, with the mandate to develop an integrated, transparent and dynamic pricing mechanism for the passenger and freight segments of the Indian Railway's business.
- Government also gave the go-ahead for Setting up an electric locomotive factory at Madhepura and Diesel locomotive factory at Marhowra, Bihar as a joint venture.
- The factories are supposed to roll out 800 electric locomotives and around 1,000 diesel locomotives over a period of 10 years.