Corporates today gave thumbs up to the Railway Budget, which did not raise the freight charges, and described it as 'development-oriented'.
Describing it as a win-win Budget, industry chambers said wagon manufacturers, heavy industries and common travellers would stand to gain.
The railways' emphasis on involving the private sector in infrastructure projects as part of public-private-partnerships (PPP), was also praised by industry organisations.
However, there were concerns about the state of safety and hygiene at the railway stations, with the industry emphasising that more needed to be done towards their modernisation.
The railways would get as much as 64% from its revenue from the freight movement, of which an overwhelming share comes from transportation of coal.
"The minister has taken a very forward-looking approach and laid emphasis on PPP initiatives for attracting investments in creating infrastructure for railways," CII President Hari S Bhartia said.
More From This Section
He added, "This opens huge opportunities for the private sector to participate effectively in realizing the vision that has been outlined in the Mission 2020."
Ficci said it has found it encouraging that 85 PPP proposals have been received so far and the government is setting up a single-window system to take these forward.
"The announcement of expansion of PPP in manufacturing, fructification of public sector undertakings also partnering the railways for completion of projects will give a fillip to and saving resources of the railways," it said.
PHD Chamber said that the decision of setting up a rail factory in Jammu and Kashmir will create more infrastructure and jobs in the region.
Echoing the same, global consultancy firm Deloitte said that the Railways Minister has acknowledged that the Indian Railways is passing through a difficult phase financially.
Indian Chamber of Commerce and Industry said that the private participation in the railway projects would give a boost to the sector.
Consulting firm PwC India also said that the Railway Budget was trying to balance social and economic considerations.
However, it said that little headway has been made in the last three years on important PPP projects, such as setting up of diesel and electric locomotive manufacturing units.
Assocham said that there is no clarity on how resources will be mobilised for network expansion and building new coach and locomotive factories.
"Authorities should do more in future to improve safety and hygiene for the passengers," the chambers said.
The state of the progress of the already announced schemes reveals that a lot more is needed, Assocham said.
"Thus, the Railway Budget in nutshell has much less to offer to the business sector as its focus is more on welfare of the public and employees," it added.
Consulting firm Ernst & Young said by not changing passenger tariffs, it will be difficult for Indian Railways to generate targeted Rs 14 lakh crore investment by 2020.
The budget is silent on the real progress of large projects announced earlier, such as the Dedicated Freight Corridor, Deloitte said, adding that it had not put in place any concrete proposal to finance and implement these projects.
Rail stocks today fell sharply by up to 14% on the Bombay Stock Exchange after the Railway Budget 2011-12 announcement.
Steel pipe maker Jindal SAW Ltd today said that though there has been focus on developing the overall budget, no major emphasis has been given to the freight sector.
However, Steel Authority of India (SAIL) Chairman CS Verma cheered no direct increase in freight charges.
"No direct increase in freight is good news for the steel industry, because for every tonne of steel, around 4 tonnes of material is transported, including raw materials and finished goods," he said.
SAIL's share in total rail freight revenue is around 8%.