India Inc pats ‘non-populist’ Rail Budget
13 Feb 2014 6:53 AM IST
India Inc on Wednesday said that the government's focus on modernisation and expansion of the country's vast rail network without touching passenger fares and freight rates was a step in the right direction.
Expressing happiness on no populist measures being incorporated in the budget, PHD Chamber of Commerce President Sharad Jaipuria said: ‘The focus was rightly on attracting huge investments to upgrade, modernising and expanding railways as per aspirations of people and attempting to bring in foreign direct investment (FDI)’.
Passenger fares and freight rates were left untouched in the interim rail budget, which talks about plans about involvement of private sector and FDI as part of efforts to modernise the largest transport network in the country. ‘Increased private participation, as rightly noticed by the government, seems to be the way of future development. The increased efforts towards unlocking the value of railway assets would go a long way in achieving this objective,’ Assocham President Rana Kapoor said.
Presenting the interim budget for four months in the Lok Sabha, Railway Minister Mallikarjun Kharge said an independent Rail Tariff Authority is being set up to rationalise fares. he also said there was a proposal to expand dynamic pricing of tickets in line with the airline industry.
He announced the launch of 17 new premium trains, 39 express trains and ten passenger trains in the coming year and providing rail connectivity to Katra and Vaishnodevi in Jammu and Kashmir, and Meghalaya and Arunachal Pradesh in the Northeast.
Annual Rail Plan has been pegged at Rs 64,305 crore with a budgetary support of Rs 30,223 crore.
Meanwhile, Rail Budget could not please markets as Rail stocks saw hectic selling pressure, falling as much as 10 per cent, in the absence of any major announcement in the interim Railway Budget.
Shares of Hind Rectifiers slumped 10.09 per cent, while Kernex Microsystems India tanked 4.04 per cent.
Among others, Kalindee Rail Nirman (Engineers) lost 1.81 per cent and Titagarh Wagons was down 1.33 per cent on the BSE.
‘Shares of companies related to railways fell due to lack of major expected announcements. Kernex, Kalindee were some of the stocks impacted by the news,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
Railways to lower borrowing next fiscal to Rs 13,800 crore
New Delhi: Indian Railways will borrow less at Rs 13,800 crore from market through its two companies IRFC and Rail Vikas Nigam Ltd for capital expenditure during 2014-15. In the current fiscal, as per the revised estimate, these two companies raised Rs 14,942 crore from markets. Indian Railways Finance Corporation (IRFC) will raise Rs 12,800 crore in 2014-15 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament on Wednesday said.
The other financial firm under Indian Railway, Rail Vikas Nigam Ltd (RVNL, plans to raise Rs 1,000 crore through market borrowing. In the current fiscal, IRFC raised Rs 14,838 crore while RVNL mopped up Rs 104 crore from the market. Besides, Railways expects to mobilise Rs 6,005 crore through the Public Private Partnership (PPP) route during 2014-15.
‘Extra Budgetary Resources, including market borrowings through IRFC, ‘PPP’ and other schemes, has been pegged at Rs 19,805 crore,’ Railways Minister Mallikarjun Kharge said in his proposals while presenting the Interim Rail Budget. ‘While efforts of the government to provide precious financial resources for growth of Indian Railways would undoubtedly continue, the phenomenal investment needs of rail infrastructure cannot be met entirely through Gross Budgetary Support, Internal Generation of Railways and Market Borrowing. Railways have therefore started targeting private investment in rail infrastructure to bridge the gap,’ he said.
Expressing happiness on no populist measures being incorporated in the budget, PHD Chamber of Commerce President Sharad Jaipuria said: ‘The focus was rightly on attracting huge investments to upgrade, modernising and expanding railways as per aspirations of people and attempting to bring in foreign direct investment (FDI)’.
Passenger fares and freight rates were left untouched in the interim rail budget, which talks about plans about involvement of private sector and FDI as part of efforts to modernise the largest transport network in the country. ‘Increased private participation, as rightly noticed by the government, seems to be the way of future development. The increased efforts towards unlocking the value of railway assets would go a long way in achieving this objective,’ Assocham President Rana Kapoor said.
Presenting the interim budget for four months in the Lok Sabha, Railway Minister Mallikarjun Kharge said an independent Rail Tariff Authority is being set up to rationalise fares. he also said there was a proposal to expand dynamic pricing of tickets in line with the airline industry.
He announced the launch of 17 new premium trains, 39 express trains and ten passenger trains in the coming year and providing rail connectivity to Katra and Vaishnodevi in Jammu and Kashmir, and Meghalaya and Arunachal Pradesh in the Northeast.
Annual Rail Plan has been pegged at Rs 64,305 crore with a budgetary support of Rs 30,223 crore.
Meanwhile, Rail Budget could not please markets as Rail stocks saw hectic selling pressure, falling as much as 10 per cent, in the absence of any major announcement in the interim Railway Budget.
Shares of Hind Rectifiers slumped 10.09 per cent, while Kernex Microsystems India tanked 4.04 per cent.
Among others, Kalindee Rail Nirman (Engineers) lost 1.81 per cent and Titagarh Wagons was down 1.33 per cent on the BSE.
‘Shares of companies related to railways fell due to lack of major expected announcements. Kernex, Kalindee were some of the stocks impacted by the news,’ said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited.
Railways to lower borrowing next fiscal to Rs 13,800 crore
New Delhi: Indian Railways will borrow less at Rs 13,800 crore from market through its two companies IRFC and Rail Vikas Nigam Ltd for capital expenditure during 2014-15. In the current fiscal, as per the revised estimate, these two companies raised Rs 14,942 crore from markets. Indian Railways Finance Corporation (IRFC) will raise Rs 12,800 crore in 2014-15 for investment in rolling stock and projects, the Railway Budget document tabled in Parliament on Wednesday said.
The other financial firm under Indian Railway, Rail Vikas Nigam Ltd (RVNL, plans to raise Rs 1,000 crore through market borrowing. In the current fiscal, IRFC raised Rs 14,838 crore while RVNL mopped up Rs 104 crore from the market. Besides, Railways expects to mobilise Rs 6,005 crore through the Public Private Partnership (PPP) route during 2014-15.
‘Extra Budgetary Resources, including market borrowings through IRFC, ‘PPP’ and other schemes, has been pegged at Rs 19,805 crore,’ Railways Minister Mallikarjun Kharge said in his proposals while presenting the Interim Rail Budget. ‘While efforts of the government to provide precious financial resources for growth of Indian Railways would undoubtedly continue, the phenomenal investment needs of rail infrastructure cannot be met entirely through Gross Budgetary Support, Internal Generation of Railways and Market Borrowing. Railways have therefore started targeting private investment in rail infrastructure to bridge the gap,’ he said.
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