The union cabinet Thursday approved setting up of an authority to fix rail fares, said informed sources.
According to the sources, the Rail Tariff Authority will decide freight rates and passenger fares for the national transporter.
The move is expected to depoliticize the fixing of passenger fares, said the sources.
The idea for a separate rail tariff authority was mooted by then railway minster Dinesh Trivedi in 2012-2013 and was mentioned in the 2013-2014 rail budget speech of his successor Pawan Kumar Bansal.