Bengal industries today hailed the Railways Budget for 2016-17, saying focus on freight and logistics cost, project monitoring and emphasis on technologies will help the business houses in the state.
CII president Sumit Mazumder in his reaction to the Railways Budget said, it is growth oriented and transformative.
He said there is nothing on wagon procurement in the Budget but mention of port linkage and direct connectivity from
Kharagpur to Mumbai and Vijaywada will help Bengal.
"The focus on freight transport, project monitoring, action of logistics cost, reliance on technology, safety are worth appreciation," Mazumder said after the Budget.
He said as fares are not revised, emphasis should be on efficiency.
"The tie up for funds with LIC for 1.5 lakh crore in five years and multilateral funding options will help in raising low cost resources to execute the projects," Mazumder added.
Titagarh Wagons Ltd vice-chairman & managing director Umesh Chowdhury said the Budget was visionary despite no mention of wagon procurement.
"Globally, government does not buy wagons but creates enabling environment for private sector to procure them. This budget is moving in that direction - which is more important than actual direct procurement," he said.
For 2015-16, Railways had decided to procure 15,000 wagons and the process is already under progress. This is a four-fold increase in procurement compared to last few years.
Chowdury said even if Railways maintains current level of procurement, it will be a welcome step. But enabling environment is more important for private sector to invest in freight infrastructure.
(Reopens CCM7)
Kalindee Rail and Engineering and its subsidiaries Kalindee and Bright Power would be significant beneficiaries of the thrust in the rail budget in stepping up commissioning of new tracks and increased outlay on railways electrification by almost 50 per cent, its executive vice-chairman Ramesh Maheshwari said.
He said a series of measures including railway logistics push, new freight policies and a full-fledged market study for expanding the freight basket will help in the long run.
Texmaco has already taken the lead in development of 25T axle load bogie, supported by its state-of-the-art world class steel foundry for planned progressive utilisation of 25T axle load wagons by railways, he added.
