The Centre will likely attempt to secure legislative backing for the Rail Development Authority (RDA) next year to give more teeth to the country’s first rail regulator that will initially be set up through an executive order.
The Union Cabinet approved setting up the rail regulator responsible for recommending passenger fares, setting performance standards for rail operations and creating a level playing policy for private sector participation through an executive order.
Why?
“The idea was to make the rail regulator functional through an executive order as the Indian Railways is in dire need of reforming its tariff structure. The authority will be subsequently strengthened later this year through the legislative route,”
Legislative:
- After being formed, the Authority will work within the parameters of the Railways Act, 1989.
- This means it can only recommend changes to passenger and goods fares to the Railway Ministry which will take a final call on fixing the tariff.
‘Lacking autonomy’
- “It would be better if the Authority is set up through the statutory support so that its recommendations become binding on the government.
- The regulator may lack autonomy if it’s formed through an executive order,”
- All the six regulators in the country have the sanction of Parliament and have been accorded a statutory status.
- These include the TRAI, AERAI, IRDA, CERC, TAMP and PFRDA.
- In fact, the PFRDA became functional in 2003 through an executive order and legislative backing was secured through the PFRDA Act which was passed a decade later in 2013.
Source: The Hindu