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Quotes of Select CII Members on the Rail Budget
Feb 26, 2015

While recognising that under-investment has been a persistent problem in the Indian Railways, the honourable Minister Mr. Suresh Prabhu unveiled a comprehensive plan for modernisation of the Railways and improving the customer experience, said Mr Ajay S Shriram, President, CII. The Minister also suggested several innovative financing mechanisms including setting up special purpose vehicles for raising long-term investment from pension funds and multilateral agencies. He set an ambitious target of investing Rs 8.5 lakh crores in the Railways over the next five years. This would result in a truly modern rail system which would significantly propel economic growth, said Mr. Shriram. 

Mr Sumit Mazumder, President Designate, CII,  said “The rail budget has delineated a blueprint of what needs to be done in the next five years to bring back the primacy of railways as a premier mass transport for the Indian economy. CII welcomes the aspiration to turn railways into a world class organization by announcing measures such as completing four dedicated freight corridors, improving speed on nine corridors, effecting station modernization, improve track capacity, electrification of railway tracks and monetizing assets like land, buildings and stressing on manufacture of hi-end technology products, among others. The Minister has rightly stressed on timely implementation of projects. The announcement of a reliable and simplified procurement process, which would ensure that procurement process would be completed on time, is welcome. This is a forward thinking and long term visionary budget”. 

Mr Adi Godrej, Past President, CII said, “The budget has introduced a number of innovative measures to increase revenue. The roadmap laid for attracting private investment for the sector through tapping low cost long-term funds from insurance and pension funds, multi-lateral and bilateral agencies; forming JVs with IRFC or existing NBFC of a PSU; creating new vehicles like a holding company to raise long-term debt to induce investment will go a long way in boosting the cash strapped sector and facilitate completion of many crucial rail projects.” 

Mr Sunil Kant Munjal, Past President, CII, said , “By initiating measures to improve the operational efficiency of railways as also introducing innovative financial mechanisms- such as engagement of pension funds and other long term debt instruments, engagement with states, using funding under MPLADs, funding of bilateral and multilateral organisations, joint ventures, PSUs etc - to modernize the decrepit rail infrastructure, the Rail Budget has sought to improve the competitiveness of this means of mass transport. Similarly by making an attempt at resource mobilization by strengthening of PPPs and through acquisition of new technologies, the Minister has attempted to effect a much anticipated turnaround in rail operations. A revamping of PPP cell to protect the interests of the private sector, comprehensive policy for tapping the latent advertisement potential, digital mapping of land records, policy for utilization of rail land, creation of rail research centres, among others  are the other break-through ideas for the rail sector. This would lead to greater efficiency and result in the railways being the preferred mode of transport for passengers as well as for goods, as it should be in a country like India. 

Mr Y M Deosthalee, Chairman, National Committee on NBFCs, CII, said “The rail budget announced today has taken landmark initiative to augment its faltering revenues and arrest its financial decline by announcing practical measures based on sound and rational economic decisions. What is also noteworthy is that the railways have utilized the savings accrued by the softening of oil prices to rev up investment in this vital segment of mass transport. The tapping of gross budgetary support for railways and recourse to market borrowing would help plough public investment in rail infrastructure which in turn would help draw the private sector in rail operations.  The accent on timely completion of projects which are already in the pipeline and boosting infrastructure for perishables is a pragmatic decision, which is commendable.   It is hoped that many of the suggestions announced in the rail budget are implemented. 

Mr. Banmali Agrawala,  CII Rail Committee Member and President & CEO, GE South Asia, said,  The Railway Minister has presented a very ambitious and promising budget with significant emphasis on addressing the needs of passengers and improving freight services. The focus on finding innovative solutions in both technical and financing aspects, to enhance existing infrastructure, mobilize resources, use new technologies that transform customer experience and increase operational efficiency are steps in the right direction. The partnership with states and the private sector in execution of the projects holds great promise. The efforts towards building Dedicated Freight Corridors (DFC), bringing in advanced technology in locomotives are key steps in achieving the ambitious freight target of 1.5 billion tonnes capacity. We are hopeful that the timely execution of these projects will transform the Indian Railways.” 

Mr Ravi Uppal,  MD &Group CEO, JSPL, said “A comprehensive and visionary budget that could revitalize the railways and resolve many of its core issues including financial health and put it back on track. The budget lacks in fine detail but promises a superior ride to everyone from passengers to private participants with a slew of measures aimed at improving operational efficiencies and invigorating the PPP model and nodal agencies. On the downside the 6.30 per cent hike in freight rates for coal will dent a range of industries and is also out of whack with the Make in India spirit. Along with the 0.8 per cent hike in steel freight this is a double whammy that could have been avoided”. 

New Delhi
26th February 2015

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