Railways to have regulator to fix fares, freight rates

The government will set up Rail Development Authority to determine passenger and freight charges besides managing rail operations.

A Cabinet note to this effect has been readied for approval. The authority would be on the lines of regulators in sectors like power, telecom and ports. It’ll be housed outside the Rail Bhavan and would be completely autonomous.

“A Cabinet note is being sent on regulatory authority,” a senior official told DH. The concept paper on the authority was circulated for public comments in January and Rail Minister Suresh Prabhu, in his speech on 2016-2017 budget, had promised to set it up.

“Estimated losses in passenger segment has mounted from Rs 6,159 crore in 2004-05 to a provisionally estimated over Rs 30,000 crore in 2015-16, primarily on account of sharp increases in input costs and no commensurate increase in fares over the same period,” the concept paper has argued.

The paper had pointed out that losses caused by lower passenger fares are cross-subsidized by earnings from freight charges from goods trains.

The authority will determine passenger fares on the basis of cost incurred on running the passenger services.

Earlier, the UPA government had decided to set up a Rail Tariff Regulatory Authority under the Ministry of Railways.

The ministry , however, decided to set up an independent authority following recommendations of a high-power committee headed by Niti Aayog member Bibek Debroy, keeping in view that private companies are being introduced in train operations and services.

Ambulance, docs at stations

Indian Railways is working on introducing a medical emergency scheme for passengers, DHNS reports from New Delhi. The emergency facility will include ambulance and first aid facility at stations and it could be used by passengers in case of medical emergency while travelling.