The railway ministry will seek Cabinet approval for setting up an independent agency to recommend passenger and freight fares with a view to have independent decision making in revising rates.
According to a top official, the proposal will be sent to the Cabinet this week and approval could come as early as next week. Once approved, this will count as the second most important step, after the merger of the rail budget with the Union Budget, toward reforming the national transportation.
The proposed Railway Development Authority of India will consist of a chairman and four members independent of the railways. The ministry has already received comments from various ministries and the Niti Aayog.
The official said Railway Minister Suresh Prabhu has already discussed the proposal with Prime Minister Narendra Modi and top officials in the Prime Minister’s Office and they were supportive of such an agency.