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Does Indian Railways Require an Independent Regulator?

News

The restructuring of Indian Railways report envisages three entities: the ministry of railways, the railway board and the regulator. The ministry formulates policy for the sector and not only for Indian Railways (IR). It decides what is in the interest of the country and railway. 

Source – Rail News

SNP Insights

The Railway ministry has been setting up rules for competition both in terms of private participation as well the zones in IR. But in the current situation of IR, a separate entity as a regulator is much needed as it may help to ensure better rules of competition and maintains the quality standards of IR, thus increasing the competition factor in the sector. With the setting up of such an entity, the budget computations may become easy, coupled with stringent regulatory policy benefiting the sector may be enforced. Also, a clear vision on the commercial objective seems to be achieved faster with an independent regulator.   

Source – SNP Infra Research