Chennai:
There was a mixed reaction to the railway budget as industry and traders hit out at hike in freight charges while welcoming the budget announcements of a rail link from Gunduvancheri to Sriperumbudur industrial area and port connectivity between Karaikal and Peralam.
The industry also pointed out that some of the announcements were unrealistic especially the announcement of introducing 100 plus new trains while the railways has yet to complete the numerous projects announced during the last four years.
M Rafeeque Ahmed, president, Federation of Indian Export Organistions (FIEO) stated that an increase in freight rates up to five per cent and the possibility of imminent hike in freight due to increase in fuel costs as per the dynamic freight policy announced would add on to the cost of inputs or business at a time when there is a general slow-down in the economy with GDP levels plunging to a decade low of 5 per cent. This may also add to inflation, a prime concern for the government, he added.
Tamil Nadu Vanikar Sangankalin Peramaippu president A M Vikkramraja demanded the rollback of freight charges which was hiked by nearly six per cent across the board. “This would result in inflation and rise prices of essential commodities,” he said.
Madras Chamber of Commerce and Industry secretary general K Saraswathi said that the proposal of introducing hundred plus new trains in the backdrop of the current punctuality of the railways being around 60 per cent is a matter of concern.
She said the railway minister could have allocated the scarce resources towards completing the numerous projects announced in the last four years. She said this has escaped the minister’s attention.
Saraswathi said that the announcement of fifth and sixth railway line between Chennai Central and Basin Bridge and rail link connecting Gunduvancheri to Sriperumbudur industrial area besides port connectivity between Karaikal and Peralam, a long pending demand, was a welcome step.
She also welcomed the concept of freight surcharge but wished it was extended to passengers as well. “Cross subsidization ultimately results in higher charges payable by common man and this anomaly needs urgent remedy,” she added.
R Subramanian, president of Hindustan Chamber of Commerce said the budget was a lacklusture one. However, he hailed the budget announcement of setting up a new “Railway Energy Management Co’, to tap solar energy to use for 1000 level crossing.
He said the budget aims at stabilizing its own financial position and gradual progress to technology, long-term safety and to improve passenger amenities.
R Sethuraman, director-finance and corporate affairs, Hyundai Motor India said that the dynamic fuel surcharge (Fuel Adjustment Component) proposed in railway budget will result in a freight change twice a year.
“Rail transportation of cars will therefore become progressively more expensive as we are likely to see an upward revision in diesel prices,” he added.
Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry have welcomed the budget. The emphasis of the railway minister on financial viability and fiscal discipline of railways is reassuring and a welcome direction. Financial discipline, safety and passenger amenities are inherent to the health and the minister has paid due attention to each”, said Chandrajit Banerjee, director general of CII. With fuel prices getting deregulated, linking of freight rates to increase in diesel prices is the correct direction to take and CII commends the Government for taking this step, he added. FICCI said that the key to moving forward would be execution of the projects announced by the railway minister in his budget speech. This year’s rail budget reflects the difficult economic scenario and contains several proposals which, if implemented, would set a growth multiplier in motion.
“Even though the record of PPP in railways has been far from encouraging so far, it is imperative that greater private investments are infused into this sector. In order to realize the target of Rupees 1 lakh crore through PPP route during the 12th Five Year Plan, it is necessary that specific project-wise targets be set up and monitored,” FICCI added.
There was a mixed reaction to the railway budget as industry and traders hit out at hike in freight charges while welcoming the budget announcements of a rail link from Gunduvancheri to Sriperumbudur industrial area and port connectivity between Karaikal and Peralam.
The industry also pointed out that some of the announcements were unrealistic especially the announcement of introducing 100 plus new trains while the railways has yet to complete the numerous projects announced during the last four years.
M Rafeeque Ahmed, president, Federation of Indian Export Organistions (FIEO) stated that an increase in freight rates up to five per cent and the possibility of imminent hike in freight due to increase in fuel costs as per the dynamic freight policy announced would add on to the cost of inputs or business at a time when there is a general slow-down in the economy with GDP levels plunging to a decade low of 5 per cent. This may also add to inflation, a prime concern for the government, he added.
Tamil Nadu Vanikar Sangankalin Peramaippu president A M Vikkramraja demanded the rollback of freight charges which was hiked by nearly six per cent across the board. “This would result in inflation and rise prices of essential commodities,” he said.
Madras Chamber of Commerce and Industry secretary general K Saraswathi said that the proposal of introducing hundred plus new trains in the backdrop of the current punctuality of the railways being around 60 per cent is a matter of concern.
She said the railway minister could have allocated the scarce resources towards completing the numerous projects announced in the last four years. She said this has escaped the minister’s attention.
Saraswathi said that the announcement of fifth and sixth railway line between Chennai Central and Basin Bridge and rail link connecting Gunduvancheri to Sriperumbudur industrial area besides port connectivity between Karaikal and Peralam, a long pending demand, was a welcome step.
She also welcomed the concept of freight surcharge but wished it was extended to passengers as well. “Cross subsidization ultimately results in higher charges payable by common man and this anomaly needs urgent remedy,” she added.
R Subramanian, president of Hindustan Chamber of Commerce said the budget was a lacklusture one. However, he hailed the budget announcement of setting up a new “Railway Energy Management Co’, to tap solar energy to use for 1000 level crossing.
He said the budget aims at stabilizing its own financial position and gradual progress to technology, long-term safety and to improve passenger amenities.
R Sethuraman, director-finance and corporate affairs, Hyundai Motor India said that the dynamic fuel surcharge (Fuel Adjustment Component) proposed in railway budget will result in a freight change twice a year.
“Rail transportation of cars will therefore become progressively more expensive as we are likely to see an upward revision in diesel prices,” he added.
Confederation of Indian Industry and Federation of Indian Chambers of Commerce and Industry have welcomed the budget. The emphasis of the railway minister on financial viability and fiscal discipline of railways is reassuring and a welcome direction. Financial discipline, safety and passenger amenities are inherent to the health and the minister has paid due attention to each”, said Chandrajit Banerjee, director general of CII. With fuel prices getting deregulated, linking of freight rates to increase in diesel prices is the correct direction to take and CII commends the Government for taking this step, he added. FICCI said that the key to moving forward would be execution of the projects announced by the railway minister in his budget speech. This year’s rail budget reflects the difficult economic scenario and contains several proposals which, if implemented, would set a growth multiplier in motion.
“Even though the record of PPP in railways has been far from encouraging so far, it is imperative that greater private investments are infused into this sector. In order to realize the target of Rupees 1 lakh crore through PPP route during the 12th Five Year Plan, it is necessary that specific project-wise targets be set up and monitored,” FICCI added.
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