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Concept Paper on Rail Development Authority of India
Jan 13, 2016

Ministry of Railways has prepared a concept paper on Rail Development authority of India. Minister of Railways Suresh Prabhakar Prabhu in his speech for Rail Budget 2015-16 had said that for orderly development of infrastructure services, enabling competition and protection of customer interest, it is important to have a regulation mechanism independent of the service provider.

Salient Features

  • The Authority will discharge functions in a manner to protect the interest of consumers, ensuring quality of service, promoting competition, encouraging market development, efficient allocation of resources, provide non-discriminatory open access specially on DFC and to benchmark service levels for ensuring quality, continuity and reliability of service. 

The Authority will undertake four key functions:

1. Fixing tariff.

2. Ensuring fair play and level playing field for private investment in railways.

3. Determination of efficiency and performance standards.

4. Dissemination of information.

  • The Authority can initially be set up through an executive order and can be subsequently strengthen through a legislation process.

  • The Authority will consist of Chairman and four other members who have experience and knowledge in railways, infrastructure, finance, law, management and consumer affairs. 

  • National Transport Development Policy Committee (NTDPC) Report of 2014 had recommended that a Rail Tariff Authority should be set up which should become the overall regulator. 

  • Later Bibek Debroy Committee Report had also recommended a regulator with overarching functions.

  • Many of the countries like U.K, Russia, US, Australia, Germany have regulatory structure in some form or the other.

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