The Union Cabinet has approved the setting up of a Rail Tariff Authority, an advisory body, through a
government resolution, pending amendment of the Railway Act, 1989.
The setting up of such an authority will regulate mechanism for pricing of passenger and freight services. The Rail Tariff Authority shall compromise a Chairperson and four members at the apex level and will be vested with the function to develop an integrated, transparent and dynamic pricing mechanism for the passenger and freight segments of the Indian Railway’s business.
The authority will also advice the Central Government on fixation of tariff, based on cost of operations and factors impinging it, to help generate requisite surpluses, stated a PIB release.