Industry feels let down by Lalu

Industry today felt let down by Railway Minister Lalu Prasad for not cutting freight charges, saying his budget has widened the cross subsidisation with the freight component bearing the cost of passengers.

While welcoming the two per cent cut in most of the passenger fares, leading business chambers said they were expecting the Railway Minister to cut freight charges and stimulate the industry, witnessing a slowdown.

"The Minister has refused to respond to the current slowdown by cutting freight rates and helping Indian industry in the midst of a slowdown," new Ficci President Harsh Pati Singhania said.

Similar views were expressed by the PHD Chamber of Commerce and Industry.

"The Interim Railway Budget has been a missed opportunity to reduce freight rates across the board to stimulate the economy which is showing all signs of slowing down," chamber President Satish Bagrodia said.

He said the economy is reeling under the adverse impact of the global economic crisis and needs boost from all quarters.