Cabinet nods for Rail Development Authority


New Delhi: The Railway Ministry on Wednesday received an encouraging stimulus with the Union Cabinet’s approval for setting up of an overarching Rail Development Authority (RDA) after the Railway Ministry’s budget was merged with the General Budget from this fiscal.

The RDA, an independent regulatory body, will have the power for tariff determination, self efficiency and performance standards for the railways, and ensure fair play and level playing in the sector for stakeholder investments.

As per sources, the RDA board will consist of a chairman and three members, who will each have terms of five years. It will have to ensure fair play and level playing field for private investments in railways since the national transporter is wooing private players for development of its infrastructure, including laying new tracks and redevelopment of stations, across the nation.

According to Cabinet decision, the panel will discharge functions in a manner to protect the interest of consumers, ensuring quality of service, promoting competition, encouraging market development, sufficient allocation of resources, provide access on dedicated freight corridor and ensuring quality, continuity and reliability of service.


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