India Inc raises toast to railway budget 2007-08

India Business
India Inc raises toast to railway budget 2007-08
By IANS, Feb 26, 2007 - 6:14:29 PM

New Delhi, Feb 26 - Captains of the Indian industry almost unanimously lauded the railway budget for 2007-08 and various initiatives announced by Railway Minister Lalu Prasad Monday.

'Mr. Prasad has done the best to enhance the operational efficiency of Indian Railways without introducing any increase in freight and fare charges,' Venugopal N. Dhoot, president, Associated Chambers of Commerce and Industry of India - said.

According to Dhoot, who is also the chairman of Videocon Group, said that the proposals would give encouragement to huge capacity building of steel, cement and coal sectors.

Welcoming the host of initiatives introduced by the Railway Minister, R.Seshasayee, president, Confederation of Indian Industry - said, 'The budget truly heralds a modern approach to managing the largest public service through use of technology and innovation.'

Terming the budget as hi-tech, Seshasayee also said: The announcement of the policy allowing wagon manufacturers to roll out wagons with their own designs within the parameters of the RSDO will encourage RandD in the field of railways'.

'By reducing the railway fares the Minister has shared the profits with the users.'

Another industry body, the Federation of Indian Chambers of Commerce and Industry - said in a statement: 'By cutting passenger fares and leaving freight rates untouched, the Railway Minister's strategy seems to be to get a larger share of passenger and freight traffic.'

'The railways are now working like a private sector corporation. This is great news for India. We wish other public services, especially in the social sector, like education and health would follow suit,' said Habil Khorakiwala, president, FICCI.

He applauded the railways' move towards modernisation and technological upgradation, particularly, high speed trains, new wagons,

enhanced passenger amenities by way of on-the-spot ticketing through hand-held computers, ATMs and petrol-pumps.

Kudos have poured in from the steel industry as well.

'The minister's promise for new railway lines to new steel and power projects is also a positive initiative and his announcement for a cut in freight tariffs is a welcome move,' J. Mehra, director, Essar Steel said.

According to Chhattisgarh Mini Steel Plants Association, the proposal to bring down freight rate on iron ore will help the steel industry to sustain global competitiveness.

However, according to some, the budget has fallen short of expectations.

Assocham's Dhoot feels that the railway minister should have announced something on railway's modernisation drive with special focus on utilisation of railways surplus land that lay unused.

According to the Federation of Indian Export Organisation, it was expecting reduction in freight charges in an effort to check inflationary pressures and also reduction of inland freight cost for imports and exports.

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