As things stand, the Railway Development Authority does not have statutory powers. This means it will remain an advisory body and can only recommend changes to the existing tariff, while the ministry will still take the final call.
By giving Railways the freedom to fix fares, it will now be able to garner more money to spend on much-needed safety measures and capital expenditure.
The freight prices, he says, are very uncompetitive as compared to road transport. The tariffs should be brought down to make them more competitive as Railways make more money from freight rather than passenger trains.