Rail budget evokes mixed response

Chennai:

The industry gave a mixed response to the interim railway budget while stressing the need for allowing foreign direct investment in railways.

While Madras Chamber of Commerce and Industry expressed concern over the firm stance of FDI in railways is missing in the budget, Confederation of Indian Industry said that FDI in railways will infuse necessary momentum in rail infrastructure upgradation.

The Indian Railways decision to set up Independent Rail Tariff Authority to advice on fixing of fares and freight has been welcomed by Madras Chamber of Commerce while expressing concern over the decline in both passenger and freight earning.

MCCI also stated that the minor measures given for improvement of safety and security in railways cannot provide guarantee for fire break outs in the trains and this should have been addressed keeping in mind the various fire accidents in the recent past.

Confederation of Indian Industry (CII) has called for revamping and restructuring of the Indian Railways by developing a sustainable financial model to ensure feasibility of projects.

‘Revamping of the Railway tariff, allowing foreign direct investment in railways and encouraging joint ventures and public private partnerships must be explored to access funds. This will infuse the necessary momentum to rail infrastructure upgradation’, said CII in its reaction to the interim rail budget.

CII has also called for higher investments in rail infrastructure which may be achieved by faster implementation of key railway projects, such as the Dedicated Freight Corridor, high-speed rail corridors, procurement of rolling stock and other capacity enhancement works