Question : Rail Development Authority

(a) whether the proposed Rail Development Authority has been constituted;

(b) if so, the details including the role/mandate thereof and if not, the reasons therefor; and

(c) the measures that will be taken by the Authority, in terms of pricing and setting other standards of fair competition in the railways?

Answer given by the minister

MINISTER OF RAILWAYS AND COAL
(SHRI PIYUSH GOYAL)

(a) to (c): A Statement is laid on the Table of the House.

*****

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF STARRED QUESTION NO.477 BY SHRI VINCENT H. PALA TO BE ANSWERED IN LOK SABHA ON 28.03.2018 REGARDING RAIL DEVELOPMENT AUTHORITY

(a) : Government has approved the constitution of the Rail Development Authority (RDA) in April, 2017. The process for selection of the Chairman and three members has been initiated.

(b) : The role/mandate of RDA is to get expert advice/make informed decision on :-

(i) Pricing of services commensurate with costs.

(ii) Measures for enhancement of Non Fare Revenue.

(iii) Protection of consumer interests, by ensuring quality of service and cost optimization.
(iv) Promoting competition, efficiency and economy.

(v) Encouraging market development and participation of stakeholders in the rail sector and for ensuring a fair deal to the stakeholders and customers.

(vi) Creating positive environment for investment.

(vii) Promoting efficient allocation of resources in the Sector.

(viii) Benchmarking of service standards against international norms and specify and enforce standards with respect to the quality, continuity and reliability of services provided by them.


(ix) Providing framework for non-discriminatory open access to the Dedicated Freight Corridor (DFC) infrastructure and others in future.

(x) Suggesting measures to absorb new technologies for achieving desired efficiency and performance standards.

(xi) Suggesting measures for human resource development to achieve any of its stated objectives.

(c) : RDA’s functions inter-alia include :-

(i) Tariff determination functions as :

(1) Framing guiding principles/rules/models for tariff determination for both freight and passenger segments;

(2) Make recommendations on tariff setting including suggesting proposed tariff and revision of tariff;

(3) Framing principles for determining classification and reclassification of commodities;

(4) Framing principles for subsidy/social service obligations in form of budgetary support or other methods;

(5) Lay down guidelines/rules to determine track access charge for providing non-discriminatory access to Dedicated Freight Corridor network and others in future; and


(6) Any other function which is incidental or consequential to the abovementioned functions or such other functions regarding (1) to (5) above as specifically assigned by Central Government.

(ii) Ensuring fair play and level playing for stakeholder investment in Railways as :

(1) Propose modifications and send suggestions/Advisory Notes to Ministry of Railways on reference made by Ministry of Railways.

(2) Make suggestions regarding policies of Ministry of Railways for infrastructure creation through private investments/PPP and to ensure reasonable safeguards to PPP investors.

(3) Dispute resolution regarding future Concession Agreements subject to a specific clause in the Concession Agreement for referring of such disputes to RDA in compliance with the Arbitration and Conciliation Act, 1996 and Amendments thereto including the Arbitration and Conciliation Act,2015.

(4) Any other function which is incidental or consequential to the abovementioned functions or such other functions regarding (1) to (3) above as specifically assigned by Central Government.

*****

Download PDF Files