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CII lauds rail tariff rationalisation plan

Commenting on the Railway Budget, Confederation of Indian Industry president, Sanjiv Goenka stated that the move towards rationalisation of passenger and freight tariff was long over due and was a positive measure.

The reduction of the number of classes from 59 to 32 is a move in the right direction and would correct the distortions in the tariff structure, he added.

However, the proposed increase in freight on coal, iron ore and raw materials would adversely affect the power and steel plants. Goenka pointed out that 46 per cent of the Railway freight earning is through coal and any increase on this essential item would have an adverse impact.

But, the reduction of freight on steel and cement would, however, boost the induction furnace and electric furnace industry, construction industry and the consumers at large.

Welcoming the various initiatives announced in the Rail Budget, including the introduction of 16 inter-city trains (Jan Shatabadi), computerisation of un-reserved ticketing system, and setting up of 50 food plazas at various station, Goenka said introduction of high-speed refrigerated parcel vans to transport perishable commodities would greatly help the farmers and boost the agriculture sector.

On the various measures announced to enhance rail safety, Goenka stated that the setting up of Special Railway Safety Fund of Rs 170 billion for replacement and renewal of over-aged assets within a period of 6 years was long over due. He, however, hoped that the safety measures would encompass not merely renewal of tracks but the whole gamut, including safety of men and material.

Goenka was, however, disappointed by the Plan outlay, which saw a mere hike of Rs 14.73 billion. CII had expected a substantial increase in the Plan outlay in the year 2002-03 considering the fact that the government plans to stimulate demand through increased outlay for the infrastructure sector.

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