The Hindu Business Line : India Inc welcomes `hi-tech' Budget

"The Railways are now working like a private sector corporation. We wish other public services, especially in the social sector, like education and health would follow suit."

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New Delhi Feb. 26 Fast trains, high speed and high capacity wagons, travelling ticket examiners with handheld computers, call centres, and ATMs vending train tickets — the `hi-tech' aspirations of the Union Railway Budget 2007-08 have been welcomed by India Inc.

Describing the budget as forward looking and beneficial to all stakeholders, the Confederation of Indian Industry (CII) welcomed the use of technology and innovation. "... Allowing wagon manufacturers to roll out wagons with their own designs within the parameters of the RSDO will encourage R&D in the field of railways," said Mr R. Seshasayee, President, CII. The decision to extend the electrification network across the golden quadrilateral and all diagonals was also appreciated.

Equally appreciative was the Federation of Indian Chambers of Commerce and Industry (FICCI). Mr Habil Khorakiwala, President, FICCI, observed that the Railway Minister, Mr Lalu Prasad, had bet his budget for 2007-08 on a buoyant economy. "The Railways are now working like a private sector corporation. We wish other public services, especially in the social sector, like education and health would follow suit," he said.

Capacity-building

Mr Venugopal N. Dhoot, President, Association of Chambers of Commerce and Industry believed that the Budget proposals would encourage the huge capacity-building of steel, cement and coal sectors. The introduction of 800 new wagons, as also 20,000 km of high-density railway network through public-private partnership model was particularly commendable, said Mr Dhoot. However, he expressed disappointment over the exclusion of any announcements on the railway's modernisation drive with focus on utilisation of railways surplus land.

Record net profit

Also complimenting the Ministry for posting a record net profit of Rs 20,000 crore, was the Indo-American Chamber of Commerce which welcomed the Rs 2,500-crore investment on container upgradation, creation of a new freight corridor, new freight lines and proposals for high speedy trains.

The PHD Chambers of Commerce and Industry was more critical and believed the budget lacked commercial orientation and was populist in nature. "The major focus continues to be on adding more passenger trains without creating the required additional infrastructure," it noted. The organisation also expected the setting up of an independent Railway Tariff Regulatory Authority to rebalance the tariff structure and de-politicise the tariff setting.

`Progressive'

Mr Ganesh Kumar Gupta, President, Federation of Indian Export Organisations described the Railway Budget as `progressive', especially the idea of high-speed freight corridors between Mumbai and Ahmedabad and introduction of double-stack container trains between Pipavav and Jaipur. However, he also expected a reduction in freight rates, to check inflationary pressures and reduce inland freight cost for imports and exports.

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