'Rail Tariff Authority' to advise on rail fares approved

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The Union Cabinet has approved establishment of an ad-hoc 'Rail Tariff Authority' for pricing of passenger and freight services.     

Key Points:

  • 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.
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