Rail Budget: An attack on inflation, says Lalu

Asserting that the Railway Budget for 2007-08 was aimed at "slapping" inflation through measures to lighten the burden on the common man,
Railway Minister Lalu Prasad said several measures, including those against hoarding, have been taken to contain prices.

"We will not facilitate the products of hoarders and will instead give preference to procurements of foodgrain by Food Corporation of India," he said in an hour-long post-budget press conference.

"At a time when there is an increase in prices of some commodities, the Rail budget is a slap on the price rise as we have cut freight charges on petrol and diesel," Prasad said.

He said the freight rate for carrying foodgrain on return empty trip has been reduced by 42% besides lowering the overall freight slab for foodgrains.

The Minister said incentives had also been provided for FCI if the commodities are packed instead of sending them loose. Similarly, there was a 30% concession on goods sent in open wagons.

In reply to a query, the minister said the revenue surplus is estimated to cross Rs 20,000 crore during the next financial year despite a likely loss of about Rs 4,500 crore due to cut in passenger fares.