Explanation:

This initiative has been recommended by various committees like: Rakesh Mohan expert group (2001), National Transport Development Policy Committee (NTDPC) (2014) and Bibek Debroy Committee (2015).

 Functions of the authority

•  It will act within the parameters of the Railway Act 1989 and make recommendations to the Railway Ministry on passenger and freight fares.
•  It will be an independent body. The provisions of a separate budget, and the appointment and removal process would help maintain its independence.
•  Regulatory functions: pricing of services commensurate with costs, protection of consumer interests, ensuring competition, creating a positive environment for investment, and providing a framework for non-discriminatory open access to the dedicated freight corridor.
•  Developmental functions: promote efficiency and economy and absorption of new technology, market development, benchmarking of services against international norms, and human resources development.

Composition of the authority

•  It will have a chairman and three members with a fixed term of five years each.
•  The Central government will appoint the chairman and members by choosing from a panel of names recommended by the search and selection committee chaired by cabinet secretary.