The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for the obligation to operate non-profitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways, or the private container operators. (12.5 marks, 200 words)
Posted inUPSC - Mains Solved Paper GS 2

The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for the obligation to operate non-profitable routes and services. Taking into account the experience in the power sector, discuss if the proposed reform is expected to benefit the consumers, the Indian Railways, or the private container operators. (12.5 marks, 200 words)

The proposal to establish a Rail Tariff Authority to oversee fare regulation brings forth significant implications for the financially burdened Indian Railways.