The Union Cabinet has given the approval to set up Rail Development Authority (RDA). It will be an independent rail regulator based in Delhi and will be set up through an executive order.
- Recommend passengers fares
- Set performance standards for rail operations
- Create Level playing policy for the participation of the private sector
The RDA will be an independent body and will be allotted separate budget.
It will act as per the parameters of Railway Act, 1989. It will just give recommendations, the final decision on freight and passenger fares will be taken by railway.
Members and selection criteria: It will be having four members including one chairman and 3 other members. Their term will be of 5 years. All the members will be selected by the Search and Selection Committee headed by the Cabinet Secretary.
Why The RDA Created?
As per an approximation, Railways sufferers a loss of approximately Rs 30,000 crore during the year 2015-16 only in the passenger section due to severe increases in input costs and no balanced rise in fares over the similar period.