The Hindu Business Line : Apex chambers give green signal

THE Railway Budget presented by the Railway Minister, Mr Lalu Prasad, on Saturday was given a green signal by India Inc. Describing the Budget as freight-customer friendly and innovative, the President of the Federation of Indian Chambers of Commerce and Industry, Mr Onkar S. Kanwar, said that the schemes to attract a greater share of freight through private-public partnership will allow the industry to use the available railway infrastructure optimally.

The industry, however, feels that by leaving passenger fares untouched, the Railway Minister has chosen to persist with cross-subsidisation of freight rates.

Mr Sunil Kant Munjal, President of the Confederation of Indian Industry, said that the opening of container movement would attract private sector participation in a big way in the freight-dedicated corridors. Welcoming the proposed rationalisation in the goods tariff from 4,000 commodity groups to 80 commodity groups, he said that an equally important factor is efficiency for which a lot needs to be done.

The President of the Associated Chambers of Commerce and Industry of Industry, Mr Mahendra K. Sanghi, welcomed the proposal to allocate Rs 24,000 crore for the modernisation of the Railways. However, for mobilising resources for modernisation, adequate measures have not been taken, he said. Mr K.N. Memani, President, PHD Chambers of Commerce and Industry (PHDCCI), said the Budget has failed to carve out a strategy for long-term investments through the generation of internal surplus for investment purposes.

The National President of the Indo-American Chamber of Commerce , Mr Ranjit Sen, said that the Railway Minister could have avoided the populist undertones, especially at a time when freight movement of the Railways has shown marked improvement.

The Indian Chamber of Commerce and Industry felt that the Railway Minister should have addressed issues such as the low pick-up of wagon acquisition and mounting operating costs.

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