New Delhi: Praising the Railway Budget, India Inc on Monday termed it promising and said measures, especially those on containers and freight services, will not only help the industry but benefit the general public as well.
Railways Minister Lalu Prasad Yadav has informed that extra loading of 7mt was seen this year. The steel traffic market share is up significantly. Cement freight share is up 20-30 per cent. Furthermore, 60mt excess loading was witnessed in FY07.
Lalu expects the cement and steel share at 200mt each in 2011-2012. In the next five years, the Government will invest massively in container operations.
He informs that container train experiment has been successful. The Ministry intends to start 3-storey container trains on pilot basis.
Welcoming the freight rate cuts on petrol, diesel and iron ore, industry chamber CII said it would have an overall positive impact on the economy.
"The freight impact on the industry is in the right direction and general approach of the budget was to improve efficiency and higher output," as quoted by PTI, CII Chairman Railways Equipment Division J P Choudhary said.
"The decision for increased investments on container traffic by running more trains is a welcome step. It will bring down cost to end users and help in the long run to improve railway services," Gateway Distriparks (Rail Freight) CEO Sachin Bhanushali said.
S K Nevatia, CMD of Hind Rectifiers, described the Railway Budget as 'promising'.
For the industry engaged in supplying equipment to the Railways, the Budget is a good as plans to invest more on manufacture of wagons will help shore up order book, he said.
"Plans to invest more on freight, locomotives and general trains with enhanced capex will help those companies which supply to the Railways as there will be more demand for equipment," he added.
Texmaco President Ramesh Maheshwari said: "It is truly exciting. Year after year Lalu Prasad is becoming a turnaround expert and the figures he has given are mind-boggling."
Lalu Prasad refrained from hiking freight rates, while reducing rates for transportation of diesel/petrol by five per cent and six per cent on iron ore and limestone.
"The minister is taking innovative measures and if this tempo continues Railways will be one of the pillars of our growth in the coming years," CII's Choudhary added.
Assocham also welcomed the Railway Budget for successfully linking old economy with the new and taking full advantage of modern technology.
"Besides, facilities provided to the economically weaker sections, traders, physically challenged and senior citizens and others are welcome," Assocham Secretary General D S Rawat said.
Low-cost airlines, while welcoming the announcements made by Lalu Prasad, said that the fare cuts would not have much impact on the cost of air travel.
"The numbers are huge but it would not impact low cost air travel. We will not revise our fares as almost our fares are below first and second class AC," Air Deccan Chairman and Managing Director G R Gopinath said.
Kingfisher Airlines Director A K Ravi Nedungadi also said the fare cut by Railways would not have any negative impact on the airline industry.
"The minister is doing the right thing. However, we do not see any negative impact. The fare cut will certainly be helpful in increasing traffic in shorter travel but for longer distance people will not change from airline to Railways," Nedungadi added.
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