India Inc on Monday hailed the Railway Budget as promising and said measures, especially those on containers and freight services, will not only help the industry but benefit the general public as well.
Industry chamber CII welcomed the freight rate cuts on petrol, diesel and iron ore saying 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,” CII Chairman Railways Equipment Division, JP 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.
Freight rates
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 that the fare cut by Railways would not have any negative impact on the airline industry.
Better resource utilisation
FICCI President Habil Khorakiwala said the Railway Minister has bet his budget on a buoyant economy and the fact that he has cut passenger fares and refrained from increasing freight rates suggests that Railways is now working like a private sector corporation.
“This is a good news for India and wish that other public service areas like education and health would also follow the Railway example,” he said.
Shanti Narayan, Member, Railway Board (Traffic), while welcoming the announcements on freight corridors said there was a need to find ways to increase capacity by other means as well.
Tags: Budget-07