The resources of Railways are "constantly dwindling" as freight and passenger fares are not being decided in an optimum manner, the government said in the Lok Sabha today.
Responding to supplementaries during Question Hour, Railway Minister Suresh Prabhu said "resources of Railways are constantly dwindling" as they are "not decided in the most optimum manner".
He said the share of railways in freight as compared to other modes of transportation is declining.
Referring to the creation of a Rail Development Authority, he said there should be a "trade off" to ensure that interests of the freight operators and passengers as well as that of Railways is protected. Efficiency should be the parameter in deciding on freight, he said.
Stressing the need for private participation in Railways, he also said there was a need to ensure that while private participation is there, it should not affect the interest of the travelling public.
The minister recalled that in December last, a concept paper was floated on the regulatory framework and setting up of the proposed Authority.
The proposed body will protect consumer interest, promote competition and encourage market development.
When some members raised issues about railways lines and development of Railway Divisions, Prabhu asked them to wait for the Rail Budget to be tabled tomorrow.