The Hindu Business Line : Chambers give the thumbs up to proposals

New Delhi, Feb. 26 India Inc rated the Railway Budget 2008 high, with the Confederation of Indian Industry (CII) welcoming the scope for public private partnership and the Federation of Indian Chambers of Commerce and Industry (FICCI) describing it as anti-inflationary.

With the budget focussing on port connectivity, freight corridors, container terminals and improved passenger amenities, the CII felt that such a move would boost the country’s railway network by making it modern and efficient. In reaction to the announcement of public-private partnership schemes that would attract investments of Rs 100,000 crore over the next five years, CII and Assocham welcomed the proposed partnership to participate in the growth of Indian Railways (IR).

Further, both the chambers have supported the reduction in the freight rate for petrol and diesel by 5 per cent and on fly ash by 14 per cent. CII held the view that the reduction would help offset to some extent the impact of the fuel price hike. The CII President, Mr Sunil Bharti Mittal, opined that the forward looking Railway Budget will create a win-win situation for all — IR, the wagon manufacturers, heavy industries and the common man.

‘Anti-inflationary’

FICCI described the budget as anti inflationary due to reduction in passenger fares and freight rates. “The announcement of cuts in passenger fares and freight rates, particularly on diesel and petrol by 5 per cent is good and a strong anti-inflationary measure,” said the FICCI President, Mr Rajeev Chandrasekhar.

FICCI appreciated the Railway Minister’s proposals for doubling and trebling important railway connections and the emphasis on raising the axle load of wagons by introducing 30 ton-axle load wagons. “The Minister has also mooted introduction of double and triple stacking containers and wagons for specialised cargo like iron ore. These initiatives would bring down wagon turnaround time and thereby increase efficiency and capacity,” FICCI said.

However, the PHD Chambers felt that the budget had failed to take measures to capture a larger share of the growing goods traffic.

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