The Union Cabinet on Wednesday put off a proposal to constitute a Rail Tariff Authority (RTA) which is meant to advise the Railway Ministry on fares, an important reform measure for the cash-strapped public transport system.
Sources said the proposal could not be taken up as Railway Minister Mallikarjun Kharge was not present in the Cabinet meeting.
A close aide of Mr. Kharge said the Minister could not attend the meeting as he was out of town and will reach New Delhi this evening. The Cabinet meeting was to take place in the evening but was rescheduled for the morning because of which he could not attend it.
The RTA, seen to be a major reform proposal, is crucial for the railways as it will recommend fare revision from time to time taking into account input costs and volatile market conditions.
The Cabinet is also expected to approve formation of a search committee for appointing RTA members and its chairman.
Cabinet Secretary and Railway Board Chairman are members of the search committee.
However, RTA’s recommendation will not be mandatory for railways as, according to existing law, only the Railway Board, and not any outside body, can fix the tariff.
RTA will be given mandatory powers only after the amendment of the Railway Act, 1989, in Parliament which is unlikely to happen in the UPA-II regime, since their term comes to an end in a few months.
The next government will initiate the process of making RTA a mandatory body by amending the Railway Act to insert a sub-section called Chapter 5 (A).
