16th March, 2016 (MAINS)


Q1. The setting up of a Rail Tariff Authority to regulate fares will subject the cash strapped Indian Railways to demand subsidy for 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.

[12.5marks/2014/GS-2] 200 words.

Please write answer in the comments section.

  • Aniruddh Shrivastava

    I am not even able to reach the demand of question. Somebody help. :D

    • Kamlesh Twari

      Demands: The question’s demand can be catered in two aspects. The minor portion asks for the practicality on non-profitable routes and services; whereas, the latter portion needs to be tackled in further three parts covering the impact of RTA on Consumers, the Indian Railways and the private container operators.

      Approach: The first part should explicitly mentioned provisions and needs of RTA and the subsidy for non-profitable routes. Next three smaller part must be devoted to the pros and cons of such provisions on the benefits to Consumers, the Indian Railways and the private container operators.

      Keywords: Advisory body, suburban passenger services, concessionary travel, cross subsidization, high freight prices