The cabinet has asked the law ministry to suggest ways to set up an authority to fix rail fares, a minister said Friday.
According to Information and Broadcasting Minister Manish Tewari, the cabinet discussed the issue Thursday and asked the law ministry to suggest a road map.
He said there were two options before the government to set up such an authority — through a legislative process or an executive order.
The consensus in the cabinet was on the executive order route.
Once the law ministry’s recommendations come, it will go to the cabinet for consideration, said the minister.
According to officials, the proposed Rail Tariff Authority will decide freight rates and passenger fares for the national transporter.
The move is expected to depoliticize the fixing of passenger fares.
The idea for a separate rail tariff authority was mooted by former railway minster Dinesh Trivedi in 2012-13. It was mentioned in the 2013-14 budget speech of former railway minister Pawan Kumar Bansal.