The Union Cabinet recently gave in-principal approval for the proposal to form a Rail Tariff Authority (RTA) that would make recommendation on the level of tariff for both the freight and passenger fares.
The proposed authority would make the recommendation from time to time taking into account the input cost (diesel and electricity) and volatile market conditions.
The final approval for setting up the authority was deferred for want of clarifications on various aspects like powers of the new body.
The Railways Ministry is expected to work out certain aspects like the composition and powers that the proposed RTA will have.
Till the Railways Ministry decides on these aspects, final approval is withheld.