India Inc on Tuesday applauded Railway Minister Lalu Prasad for presenting a "pragmatic" Budget, and said the proposals would help strengthen and expand traffic handling capacity of the institution.
"The Railway Budget has attempted to address the transport requirement of an expanding Indian economy. The Minister has introduced several new procedures, which will facilitate private sector participation in the Railways, particularly in design and development of new models of wagons," Ficci President Rajeev Chandrasekhar said.
The chamber further said an investment of Rs 2,50,000 crore (Rs 2.5 trillion) and 'Vision 2025' would help in augmenting railway capacity and managing the huge traffic that the growth of the Indian economy will generate.
Welcoming the cut in passenger fares and freight rates particularly on diesel and petrol by 5 per cent, he said, "This is a good and strong anti-inflationary measure".
The proposals to double and treble important railway connections and introduce special types of wagons for cargo like iron ore would bring down wagon turnaround time, thereby increasing efficiency and capacity.
Terming the Budget as "pragmatic, progressive and futuristic", Assocham President Venugopal Dhoot said proposals like reduction in freight rates and rail fare will help the railways attract more traffic.
"The Budget will make Indian Railways one of the best world-class institutions. Commercial use of railways' land by Rail Development Authority to give a boost to railway revenue is another step that will prove to be an important landmark in the history of Indian Railways," Dhoot said.
He further said through the introduction of over 53 new trains, the Railways would pose a tough competition for road and air traffic.