Rail Budget 2016: India Inc says Rs 1.84 lakh crore revenue target ‘strong challenge’
The revenue generation target of Rs 1.84 lakh crore in the Rail Budget 2016-17 presented by Railway Minister Suresh Prabhu today in Parliament was described by India Inc as a ‘strong challenge’. However, the three new freight corridors envisaged by 2019 were tagged by industry leaders as ‘growth-oriented’ and that they will help reduce transportation costs.
February 25, 2016 17:47 IST
The revenue generation target of Rs 1.84 lakh crore in the Rail Budget 2016-17 presented by Railway Minister Suresh Prabhu today in Parliament was described by India Inc as a 'strong challenge'. However, the three new freight corridors envisaged by 2019 were tagged by industry leaders as 'growth-oriented' and that they will help reduce transportation costs.
Rail Budget 2016: Railway Minister Suresh Prabhu today spared passengers and goods movement from any rise in tariffs while it announced introduction of three new superfast trains and creation of dedicated north-south, east-west and east coast freight corridors by 2019.
Rail Budget 2016: Rajeev Jyoti CEO Railway Business L&T said: "The Railway Minister has been very aggressive to retain a pretty high revenue target of Rs 1.8 lakh crore. I think this is a strong challenge considering there are challenges on GDP growth etc.
Rail Budget 2016: "Despite the Pay Commission recommendations, which will hit them by Rs 30,000 crore he is still looking at an operating ratio of 92 per cent which is extremely challenging. He enunciated a lot of actions towards cost saving. Targets of commissioning 2 corridors by 2019 very challenging."
Rail Budget 2016: "The focus on completion and implementation of projects is good. The creation of three new corridors will act as a catalyst for reducing the logistics cost," CII President Sumit Mazumder said.
Rail Budget 2016: "The rationalisation of freight policy and review of PPP policy framework would help to attract private players for transforming rail transportation and increasing the revenue. Initiatives towards developing an integrated railway network, greater emphasis on dedicated freight corridors, and improving port connectivity as well as north-east connectivity would go a long way in expanding the freight business," Ficci President Harshvardhan Neotia said.
Rail Budget 2016: "While we saw qualitative measures on freight like enhancing its basket we could have looked at more concrete measures," said Tilak Raj Seth Vice Chairman CII Rail Transportation & Equipment Division.
Rail Budget 2016: "Railway Minister has given a no-tariff hike budget without compromising on capital expenditure for increasing carrying capacity of both passengers and freight even in a challenging economic environment marked by a severe slowdown in the commodity sectors," Assocham President Sunil Kanoria said.
Rail Budget 2016: “If without increasing freight pricing revenues can be grown then it will automatically better the finances of Railways,” Nalin Jain, President & CEO, GE Transportation.
Rail Budget 2016: The three new freight corridors, north-south will connect Delhi and Chennai, East-West connecting Kharagpur to Mumbai and East Coast from Kharagpur to Vijawada.