Railways is planning to set up an independent institutional mechanism for deciding passenger fares and freight tariff based on efficiency. Railway Minister Suresh Prabhu said in New Delhi that his Ministry will have an institutional mechanism which will take into account the efficiency to decide passenger fare and freight rate. <br/><br/>He further said that there will be a new law enacted by Parliament for the purpose. The Minister said, the Government will consult with Opposition on this and a new law be legislated.<br/><br/>Mr Prabhu also said that Railways is taking initiatives to save 5,000 crore rupees on energy bill in the next three years. He said energy bill is the second biggest challenge for Railways. Currently Railways spend about 22,000 crore rupees on diesel and about 13,000 crore rupees on electricity.