The Hindu Business Line : Railway Budget ambitious, progressive, say Bengal chambers

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Kolkata Feb. 26 The city-based chambers of commerce, welcoming the Railway Budget for 2007-08 presented by Union Railway Minister as both ambitious and progressive, are particularly happy that freight rates have been left untouched.

The chambers have also lauded the across the board reduction in passenger fares, both AC and non-AC fares, as noteworthy, considering that the Railway Minister did not resort to a passenger fare hike in his last three Budgets.

Steps such as proposed increase in wagon capacity, introduction of three-storeyed freight container trains as well as higher axle load facilities, it is felt, would help the Railways to achieve even higher freight loadings.

Complimenting the Minister for generating an interest surplus to the tune of Rs 10,227 crore, increase in freight earnings by 17 per cent, and passenger earnings by 14 per cent, the Indian Chamber of Commerce (ICC) has pointed out that all these measures augured well for the Railways, especially in achieving economies of scale in railway operations.

According to Mr Rajiv Singh, Secretary General of ICC, "The chamber sees great business/investment opportunities in view of a host of ambitious plans and programmes that have been announced in the Rail Budget, like massive investments for developing rail infrastructure and container operations. The proposal to launch new wagons of 15-20 tonnes besides introduction of 800 more bogies in existing trains is described as timely steps."

Describing the budget as "all inclusive, people-friendly with a human face", Mr P.R. Agarwala, President of Bharat Chamber, said the infrastructure would have lot to cheer with the promised large investments in infrastructure upgradation in terms of passenger coaches, additional wagons and containers and axle-load facilities to handle higher freight load. All this should give a boost to the iron and steel industry.

Welcoming the provision for laying of new lines connecting power and steel plants, Mr Agarwal felt the cut in passenger fares across the board should have been more focused.

Mr H.V.Patodia, President of Calcutta Chamber of Commerce, while appreciating the attempts to provide great relief to passengers, said the Minister, however, had not made any attempt to simplify the commercial rules and procedures followed by the system, which were found to be cumbersome, locking up huge amounts of money in needless litigations for the business community.

Lauding the Minister for lacing a healthy Budget based on strong current performance, Ms Shanta Ghosh, President of Bengal National Chamber of Commerce and Industry, said the proposal to encourage higher manufacture of wagons would help a large number of wagon manufacturing units in West Bengal.

She felt that reduction in freight costs of petrol and diesel would help reduce the inflationary impact.

Appreciating the proposals to achieve capacity building in container operations, wagon productioning and creation of a 20,000 km high density network on PPP basis in the Budget, Mr Santosh Sraf, President of Merchants Chamber of Commerce, said the Railway Minister could have significantly cut down freight rates so as to reduce transaction costs on Indian products.

More Stories on : Railway Budget | Industry Associations | West Bengal

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