Chambers see much of merit

India's leading business chambers today welcomed initiatives announced in the rail budget.

Welcoming the rail budget, the Confederation of Indian Industry (CII) said that the five pronged focus on efficiency, including replacement, renewals and de-bottlenecking, security, safety, connectivity and passenger convenience, would enable the Indian Railways to provide a fillip to the growth and development of the Indian economy.

CII President, Anand Mahindra, said that the proposals outlined were user friendly and development oriented.

FICCI president Y K Modi said that initiatives like e-ticketing and reservation using mobile phones are steps in the right direction.

FICCI also said that the full budget needs to look at the issue of traffic diversion because of distorted tariff structure.

Chambers also said that for a long time serious consideration had not been given to commercial exploitation of huge surplus land with the Railways.

The Associated Chambers of Commerce and Industry of India (Assocham) described the railway budget proposals as populist which has missed opportunity for improving railway finances by removing the cross-subsidisation on account of high freight rates and low passenger fares.

Wondering how the railways would be able to garner the additional funds for modernisation of the rail network, improve services and safety and cautioned against excessive borrowing through the Indian Railway Finance Corporation to meet the growing demand for investment in rolling stock, Assocham said such borrowing is unsustainable in the long run.

Assocham also said that in the full budget after the election, the government in office, will address the critical issues such as new measures to bring more revenues and optimal utilization of railway's land

Reacting critically to the Railway Budget PHDCCI said has called for the intervention of the Prime Minister, as in the road sector, to strengthen Indian Railways for overall national welfare.

Ravi Wig, president PHDCCI said that the interim railway budget lacked commercial orientation and does not include measures to improve the financial health of Indian Railways. He has emphasised that rationalisation of freight rates is essential to keep on track.

PHDCCI also endorsed the formulation of National Railway Policy to provide long term focus to Railway investments.

This would be able to provide a clear direction to the commercial efficiency of Railways and also clearly defined its social obligations and the plan for fulfilling the social commitments.