Mind Map for UPSC Exam (Rail Development Authority)

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History

The need of having a rail regulator has been emphasised by various committees for past many years since 2001.
Expert Group under the Chairmanship of Rakesh Mohan in 2001, the NTDPC in 2014 and Bibek Debroy’s Committee in 2015
Budget 2015-16 announced it is important to have a regulation mechanism independent of the service provider for overall development of railways
Budget 2015-16 proposed to set up a mechanism for making regulations,setting performance standards and determining tariff.

Composition of RDA

Considered to be the biggest and first-of-its-kind reform in the rail sector
The RDA will be formed through an executive order of the government
The Authority will have a Chairman and 3 members and can engage experts from relevant areas.
The Chairman and the members of RDA will have a term of 5 yrs.
An initial corpus of Rs 50 crores will be provided for setting up the organisation.
The appointment of the Chairman and members will be done by the central government from the panel of names recommended by the Search and Selection Committee

Functions of RDA

Recommendations of RDA are not binding on the government
Benchmark efficiency parameter for Indian railways
Recommend guidelines and principles for tarrif settings
Suggests measures of technology Adoption and implementation
Deriving guidelines for classifying commodities fare as well as the class
Proposing modifications and suggesting advisory noteson PPP investment
Ensuring reasonable safeguard to PPP investors
Ensuring fair and level playing field for stakeholder investment in railways
Dispute reduction in future concessions agreements
RDA will help the government to take appropriate decisions on pricing of services commensurate with costs
It will suggest measures for enhancement of non-fare revenue

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