No more politics on rail fares as an independent regulatory authority to decide fares soon

Very soon there won’t be any politics on rail fares and no blocking tracks to protest government’s decision on tickets.

In what can be said a landmark reform, Indian Railways is getting an independent regulator that will decide the fares.

Plans have been finalised and the regulatory is expected to delink the fare and freight structure from politics.

And in case the government will not be on the same page regarding fares, it will have to compensate the organisation appropriately.
A nod on this plan is expected soon when it will be introduced in the budget session.

"It (the proposed authority) will be a quasi-judicial body like any other regulator and have sufficient teeth to bite in case of noncompliance. The view is to expand the body beyond conventional regulatory work and increase its scope to make it more comprehensive. It is going to be one of the most crucial reform measures of the government," one official involved with its drafting told ET.

With the regulator coming in, this will also help the financial condition of the Indian Railways and make it more lucrative for private investments.

When contacted by ET, Railways Minister Suresh Prabhu only said the proposed body will "besides fixing fares" also "set efficiency parameters".