Union Cabinet has approved a proposal to constitute a Rail Tariff Authority, RTA to advise the Railway Ministry on fares.

The RTA is crucial for railways as it will recommend fare revision from time to time taking into account input cost and volatile market condition.
The RTA's recommendations, however, will not be mandatory for railways as only the Railway Board can fix the tariff.

The Cabinet also approved setting up of an electric locomotive factory at Madhepura and a diesel locomotive unit at Marhowra, both in Bihar.
The cabinet, which met in New Delhi on Monday, also approved the setting up of the Amritsar-Kolkata Industrial Corridor.

The Cabinet Committee on Economic Affairs , CCEA approved the sale of government's 29.5 per cent residual stake in Hindustan Zinc Ltd, the world's second largest zinc producer.

Commerce and Industry Minister Anand Sharma told reporters that the modalities in this regard will be finalised by the Department of Disinvestment. The move will help the government to raise about Rs. 20,000 crore.