Montek wants rethink on rail tariff authority

Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the government should revisit the issue of setting up an independent rail tariff authority.

A transparent system of charging tariffs would also help in streamlining subsidies, he said at a seminar on freight and rolling stock requirements.

While Ahluwalia appreciated the growth rate shown by the Railways this year, he said there was a need to increase investment further. "China plans to invest five times more in the railway sector than India."

The Railways needed to formulate a comprehensive plan for modernisation and look at ways to increase their earnings. They should rely on resources rather than budgetary support, he felt.

Commenting on the container policy, Ahluwalia said it would help bring in competition in the field.

Minister of State for Railways R Velu said with the entry of private container train operators, there was going to be an upswing in container traffic and business and industry would benefit from the fruits of competition in this segment of the transport market.

He felt that the decision to set up separate corridors for freight traffic would release capacity on existing saturated routes, allowing the increasing demand for passenger trains to be met.

Naranbhai J Rathwa, also a minister of state for Railways, who was also present on the occasion, said the performance of the railways in terms of achievement of targets as well as fresh initiatives in the past two years was significant.