Railways plans separate body to fix passenger fares, freight rates
Authority most likely would end subsidy for passenger fares as railways incurs Rs 33,000 crore towards fare aid.
Mumbai: Months after merger of Rail Budget with the General Budget was announced, the rail ministry on Monday revealed it was planning a separate entity that would fix passenger fares and freight rates in future.
The proposal for setting up the unit is likely to be sent soon to the Union Cabinet for approval, the rail ministry informed.
Media reports said that rail minister Suresh Prabhu has already taken up the proposal with Prime Minister Narendra Modi who, according to the reports, has given green signal for it.
The separate authority is expected to streamline the entire process of fixing passenger fares and freight charges as the present set-up is cause of huge burden on rail finances.
Indian Railways incurs a whopping Rs 33,000 crore towards paying subsidy on passenger fares.