 "Rail ministry to soon finalize draft bill for rail tariff authority")
The rail ministry will soon prepare a draft Bill on rail tariff authority, which will frame guidelines for passenger fares and freight rates.
“As announced in the Budget, we are going to decide on an independent institutional mechanism that will decide passenger fares and freight rates based on efficiency in the system,” Union minister Suresh Prabhu told reporters.
“We will have to create a new law and seek consultation with the opposition parties.” Prabhu, who has been facing flak for slow progress on key projects and the lack of capital spending, also announced a dip in fuel prices and the new system of sourcing power for traction through competitive bidding would help railways save Rs 5,000 crore over three years in its annual fuel bill.
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Last year, Indian Railways spent Rs 20,000 crore on diesel procurement and an additional Rs 13,000 crore to purchase electricity to operate trains. Asked whether the benefit from the reduced fuel prices would be passed on to consumers in the form of reduced fares, Prabhu said the ministry would make an announcement at the right time.
Prabhu also stressed his ministry is on track to meet the current fiscal's capital spending target of Rs 1 lakh crore and added the Rs 82,000 crore Dedicated Freight Corridor (DFC) project would be commissioned soon. According to a top ministry official who did not wish to be identified, the rail ministry is likely to ministry is likely to announce projects for implementation of new dedicated freight corridors in the next year's rail budget.
Commenting on the ministry's plan to rollout high speed services, the minister said the feasibility report for the Mumbai-Ahmedabad corridor submitted by the Japanese funding agency Japan International Cooperation Agency (JICA) is being studied by various government departments including the Ministry of External Affairs (MEA) and a decision will be announced soon.
