Lok Sabha Question No. 477 (STARRED), answered on 2018-03-28
Subject: Rail Development Authority
Ministry: RAILWAYS
Asked by: VINCENT H PALA

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA STARRED QUESTION NO.477 TO BE ANSWERED ON 28.03.2018

RAIL DEVELOPMENT AUTHORITY

*477.  SHRI VINCENT H. PALA:

Will the Minister of RAILWAYS be pleased to state:

(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 MINISTER OF RAILWAYS AND COAL (SHRI PIYUSH GOYAL)

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

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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.

- Providing framework for non-discriminatory open access to the  Dedicated  Freight  Corridor  (DFC)  infrastructure  and
- (ix) 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 determination for both freight and segments;
- tariff passenger
- (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.
2. (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.

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