Tariff-Making on the Indian Railways-A Case Study

Tariff-Making on the Indian Railways A Case Study H K Paranjape The Rail Tariff Enquiry Committee, appointed in 1977, represented the first systematic attempt to examine the entire rail tariff structure. In the context of the railway's role in the economy, the Committee was required to examine a number of questions which have relevance to the general problem of public sector utility pricing in a developing economy. The case study presented here discusses the major issues faced by the Committee and the government's reaction to its recommendations in terms of actual tariff proposals. The study concludes with an analysis of the reasons underlying the government's operational approach, and suggests some ways by which the cross pressures hindering the implementation of an integrated approach to rail tariffs might be better withstood.