In a path breaking decision, an independent Rail Tariff Authority is being set-up to advise the Government on fixing of fares and freight of Railways. Determination of rates will no longer be an exercise behind veils where the Railways and the users could only peep covertly at what was happening on the other side.
The Rail Tariff Authority will not only consider the requirements of the Railways but also engage with all stake-holders to usher in a new pricing regime through a transparent process. This would lead to an era of rationalisation of fares and freight structures for improving the fare-freight ratio and gradually bringing down cross subsidization between different segments. It is expected that this would go a long way towards improving the financial health of the Railways, lead to growth to match expectations of the nation and provide stability by minimizing volatility of revenue streams.
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