Recommendation to set up Railway Regulatory Authority of India

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAJYA SABHA

ANSWERED ON 08.05.2015

(a) whether the High Power Committee headed by Dr. Bibek Debroy, set up to suggest ways to re-structure Railways, has recommended drastic reforms including allowing private players to run trains, producing coaches and wagons;

(c) whether the Committee has also suggested setting up a regulator – Railway Regulatory Authority of India (RRAI) for fixing tariff, determining cost of services, setting technical standards among others; and

(a) to (d): The Interim Report of the Committee on Mobilisation of Resources for major Railway Projects and Restructuring of Railway Ministry & Railway Board headed by Dr. Bibek Debroy, (submitted in March, 2015) contains, various recommendations on reforms. These include, inter-alia the following:

• Allow Private entry into running both freight and passenger trains in competition with Indian Railways (IR) and private participation in various Railway infrastructure services and Non-core activities like Production and Construction.

• Allow Private entry in the proposed Rolling Stock Units in Rae Bareilly, Bhilwara, Sonepat, Chhapra, Jalpaiguri, Kacharapara & Palakkad in addition to Madhepura and Marhowra.

• Set-up a Railway Regulatory Authority of India (RRAI) statutorily, with an independent budget, so that it is truly independent of the Ministry of Railways. The RRAI should have powers and objectives of economic regulation, including, wherever necessary, tariff regulation, safety regulation, fair access regulation, including access to the railway infrastructure for private operators, service standard regulation; licensing and enhancing competition and setting technical standards.

No decision has been taken on the Interim recommendations of the Committee, which is at the stage of feedback/comments from stakeholders.

*****