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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Rail Development Authority: Discuss the importance of newly approved Rail Development Authority.
Apr 08, 2017 Related to : GS Paper- 3 and 2

Ans :


Recently union cabinet approved the setting up of a regulator for the railways—the Rail Development Authority (RDA). The demand for RDA due since long time, it will help the Indian Railways take decisions on pricing of services, consumer interests, generating revenue and competition, among others. 

What is Rail Development Authority-?

  • The newly approved regulator will perform four primary functions— tariff determination, ensuring fair play and level playing field for stakeholder investment, setting efficiency and performance standards and dissemination of information. 
  • The RDA will be headed by a chairman and comprising three members and it will have a five-year term and be empowered to engage experts. It will be independent body with separate budget.

How RDA will change the Indian Railways landscape-?

  • Currently reforms in Indian Railways like increase in train tariffs and reduction in the number of railway employees have been withheld due to political reasons. Hence the need for an independent rail regulator has been emphasized since 2001 by various committees.
  • For orderly development of infrastructure enabling competition and protection of customer interest, it is important to have a regulation mechanism independent of the service provider.
  • The newly approved regulatory authority will change the landscape of Indian Railways as it will help the national carrier take decisions on pricing of services commensurate with costs, protect consumer interests etc.
  • Similarly it will suggest measures for enhancement of non-fare revenue, promote competition and encourage market development, create positive environment for investment, promote efficient resource allocation and benchmarking of service standards, and suggest measures for absorption of new technologies and human resource development.
  • RDA will be an independent body with a separate budget. The independence is ensured through provision of a separate budget, and the appointment and removal process, hence it will change the Indian Railways landscape decisively without any political interference. 


The government decision to approve the independent railway authority is one of the important moves towards bringing larger reforms in Indian Railways. Till now railway was political tool in the hands of politicians, and it was used to serve political interests of ruling party. The newly approved independent RDA will help the Indian Railways take decisions on pricing of services, consumer interests, generating revenue and competition etc and decisively change the landscape of Indian Railways.    

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