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Railways Ministry to improve infrastructure; logistic becoming a new engine of growth: Suresh Prabhu

Capital Market 

Railway ministry is focussing more on improving the infrastructure of Indian to create a proper logistics and seamless movement of traffic said Minister Mr. Suresh Prabhu at an ASSOCHAM event.

Therefore, we have decided to create an infrastructure at much faster pace. Already we are creating infrastructure twice to speed than previous year and will increase every year, said Mr. Suresh Prabhu, Union Minister for

Mr. Prabhu said he has sanctioned 16,500 km of doubling and tripling lines as against only 22,000 km in the last 70 years. Only 42% of electrification has been made so far and will double in next five years plan.

We are already creating about 100 private freight terminals with private participation so that more and more traffic can come to the railways.

We are already plan to save about Rs. 41,000 crores from the energy bill and we have already saved about 10% of that. So, all of this will result in creating a good logistic backbone for India which will help India to do much better business as logistics is key to success of industrialisation.

The port connectivity happens properly, we are also providing private participation into most of the sectors.

The GST (Goods Services and Tax) which is a game changer for the country is created a fiscal situation wherein goods and services can move from one end to another without any hindrance, said Mr. Prabhu .

On the histrionically low consumer price inflation, Mr. Prabhu said, this is the result of sound fiscal monetary policies in India. 'Our Prime Minister already said that people at large are suffering because of inflation being very high and the growth rate being low'. So, it was double whammy. We actually reversed it, inflation is low and growth is high means the common people don't have to spend too much money on their daily necessities and they will have more savings.

So, this will be virtue cycle from the vicious one previously. Now, growth orientation will happen through participation of large number of people who will be entering the market as savers rather than just consumers and spenders. This will be a good beginning and probably over a period of time, will see more investments will come.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, July 15 2017. 09:38 IST