The Hindu Business Line : Steel industry not impressed

New Delhi, July 3 The steel industry seems unmoved by the Rail budget. While welcoming “a people friendly” budget which announced no increase in passenger fares or freights, Mr Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel, said, “No loyalty has been given to steel industry as steel is the largest revenue providers for the railways.”

“Status quo is good. Industry would have appreciated if rail freight would have been brought down in view of high freight rates in India and problems faced by the industry due to global meltdown,” said Mr Anil Sureka, Executive Director (Finance), Ispat Industries Ltd. “The Railway Budget is heavily focused on passenger services with virtually nothing new for cargo services,” said Mr J. Mehra, Chief Executive Officer, Essar Steel Business Group. He however, welcomed the expansion of rail network, up-gradation and the proposal to acquire 18,000 railway wagons which would give a boost to steel demand.

Mr Sajjan Jindal was of the view that the railway budget somehow missed “elaborate steps and proposals for massive modernization of railways that would take it on par with modern management of railways.”

The Steel Authority of India (SAIL), however welcomed the higher procurement target for wagons, plan for new lines, gauge conversion and doubling of 700 km of railway lines. Mr S. K. Roongta, SAIL Chairman, said, this should help in higher demand for steel items including rails.

“Besides, development of dedicated freight corridors along the western and eastern parts of the country with industrial hubs, rail-port connectivity, logistic parks etc. would help industrialization and increased economic activity,” he added.

“Railways had recently changed freight classification for movement of iron-ore for exports. They should consider lowering of classification for domestic movement of iron-ore also,” suggested Mr Roongta.

“While the Public Private Partnership initiatives, the up-gradation of stations, more profitable land use and freight corridors announced are great— what remains to be seen is how fast these initiatives are implemented,” said Mr Sushil Maroo, Director, Jindal Steel & Power Ltd.

Mr N. C. Mathur, Chairman of the Steel Furnace Association of India, said that the Railways is one of our largest end-users, along with construction and the automobile sector, and the plans announced are welcome.

However, it will be interesting to see the report-card of the plans announced last year.

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