Rail Tariff Authority to be set up through executive order

The government is exploring the possibility of expediting the formation of the Rail Tariff Authority (RTA) through the executive route after the proposed regulatory body received an in-principle nod from the Cabinet.

'RTA has got in-principle approval from the Cabinet. But since setting it up through an Act of Parliament will take some time, the Law Ministry and Railways will examine whether it will be set up through an executive order,' Law Minister Kapil Sibal told reporters here today.

The Law Ministry and Railways will work out details for the formation of RTA, the first-of-its-kind body for the national transporter, to periodically suggest tariff levels for both freight and passenger fares taking into account input costs (diesel, electricity) and volatile market conditions.

RTA will be a five-member body headed by a chairman.

'We need to take it forward through executive action,' Sibal added.

The Authority, mooted by former Railway Minister and Trinamool Congress MP Dinesh Trivedi in his Rail Budget for 2012-13, was pursued by his successors CP Joshi, Pawan Kumar Bansal and present incumbent, Mallikarjun Kharge.

The need for setting up the RTA, which is intended to be immune from political interference, has been felt due to a rise in the cost of running trains and the need to insulate the Railways from hikes in fuel and electricity prices. One of its objectives would also be to eliminate uncertainties in tariff formulation.