The Indian Cabinet cleared the long-pending proposal to set up a Rail Development Authority. The body will be entrusted with ensuring fair play and a level-playing field for stakeholder investment. Its most important duty will be recommending rail tariffs. The regulator, which will be in force by 1 August, is expected to fix tariffs base on prevailing market prices. With the creation of the regulator, the most notable outcome will be less political interference and more freedom to increase rail fares, which have been out of sync with the increase of prices for other types of transport.
First mooted in 2001, the plan to set up the authority only gathered steam after two government panels reiterated its need over the past couple of years.
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