Revenue from rail freight traffic is increasingly bearing the burden of the cost of passenger traffic. In a high fixed cost industry like the railways this amplifies the impact of a downturn in freight movement on overall revenue. But will the constitution of a Rail Tariff Authority help the Railway Board implement tariff revisions that will bring some order to the finances of the railways?
The web version of this article corrects a few errors that appeared in the print edition.
The Ministry of Railways is reported to be working on a Rail Tariff Authority, which may serve to insulate railway tariffs, particularly passenger fares, from changing and short-term political considerations.
