Finally, a rail fare regulator; will set tariffs dynamically
New Delhi, February 3:
At the fag end
of its five-year term and almost a year after Parliament approved the
proposal, the UPA-II Government has finally notified the formation of a
rail tariff regulator, albeit an interim one.
On
January 27, the Government notified the constitution of an interim rail
tariff authority, which will develop an “integrated, transparent and
dynamic” pricing mechanism.
Since it is common
knowledge that the Railways subsidises passenger services from freight
revenues, the Government has sought to make the regulator’s role
challenging by asking it to suggest fare levels that ensure healthy
surpluses for the Railways.
“The easiest thing for a
regulator will be to recommend an increase in passenger prices and
reduction in freight charges. But the Railways has a social obligation
of moving passengers across the country,” said an official.
The
tasks listed for the regulator include advising the Railways on all
matters related to fixation of tariffs, such as passenger and freight
services, including freight carried in privately-owned wagons, and track
access charges, says the notification.
It will
advise the Central Government on “fixation of tariffs of Indian Railways
based on cost of operations and factors impinging on it, with a view
not only to achieve its recovery, but also generate requisite surpluses
for healthy growth in times ahead.”
(This article was published on February 3, 2014)
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