A proposal to set up Rail Tariff Authority (RTA) for fare rationalisation got in-principle approval from the Union Cabinet today but the final nod was deferred for want of clarifications on various aspects like powers of the new body.
The Cabinet deliberated upon the proposal to establish the first-of-its-kind body that will suggest the level of tariff for both the freight and passenger fares from time to time taking into account the input cost (diesel and electricity) and volatile market conditions.
However, some members of the Cabinet sought clarifications from the Railways Ministry on some aspects like the composition and powers that the proposed RTA will have, sources said.
While in-principle approval was given for setting up the body, the final nod was withheld till the Railways Ministry provides with the clarifications, the sources said.
