Central government approves setting up of Rail Development Authority

The central government has reportedly approved the setting up of the new Rail Development Authority (RDA) with a chairman and three members, with a term of five years. It can also engage experts from relevant areas. The RDA will regulate tracks where IR and private players operate and will recommend passenger fares and freight charges. Tariff determination and ensuring fair play and a level playing field for stakeholders and setting efficiency and performance standards will also be among RDA’s functions. The authority may be also entrusted with the task of regulating private investment in the railways and resolving commercial disputes. The National Transport Development Policy Committee Report of 2014 had recommended that a Rail Tariff Authority should be set up which should become the overall regulator.