Private participation would improve railway finances: Industry experts
Some industry experts believe that private participation would improve railway finances in the future.
By ET Bureau |
KOLKATA: Railway Minister Mamata Banerjee's so called 'Aam Admi budget' has fuelled industry expectation for economic growth. Although, there has been a sense of skepticism about availability of funds for railway infrastructure and socially desirable projects, some believe that private participation would improve railway finances in the future.
Multinational consultant KPMG's executive director and head of transport and logistics, Manish Saigal said: "Though the Railway Budget lays down the preamble to its vision for 2020, resource constraints could make these targets unachievable."
Some like CESC vice chairman Sanjiv Goenka are optimistic though. "The proposed new business model for the Railways will enable greater participation by private sector. More wagons and other equipment would boost the economy and demand for transportation would expand. Simultaneously, railway finances will improve substantially."
"The budget represents a bold leap of faith, with targets that are very ambitious and offer enormous scope for further engagement with Indian industry, and great scope for innovative financing wedded to socially and commercially viable projects," Mr Goenka added.
Srei Infrastructure Finance Ltd chief Hemant Kanoria is also upbeat about probable private sector participation. But unlike Mr Goenka, he is not too sure about finances. "It is very refreshing to note that the minister is keen to ensure private investor's interest.
However, the roadmap of many of the projects announced and the way the requisite funds are to be raised are unclear. We await the details," Mr Kanoria said. What specially enthused infrastructure lending players like Mr Kanoria is the proposal to set up a task force to clear investment proposals within 100 days.
Indian Chamber of Commerce vice president Jayanta Roy said: "It's a passenger friendly and growth oriented inclusive railway budget." Bharat Chamber of Commerce president Pavan Poddar said: "She acknowledged the social responsibility of unifying the country through rail connectivity. The budget aims at improving core competence, besides optimum utilisation of the rail assets." Ms Banerjee's largesse for northeastern states was expectedly hailed by Assam chief minister Tarun Gogoi and the state's trade bodies.
Mr Gogoi said he was happy that railway minister accepted his proposal to set up state-of-the-art wagon factory in Assam and other socially desired projects.
Federation of Industry & Commerce of North Eastern Region chairman RS Joshi felt that Indo-Bangla trade will expand rapidly when the proposal for railway link between the neighbouring countries materialises. "The wagon factory will be the first manufacturing activity of railways in the region," he said.
Multinational consultant KPMG's executive director and head of transport and logistics, Manish Saigal said: "Though the Railway Budget lays down the preamble to its vision for 2020, resource constraints could make these targets unachievable."
Some like CESC vice chairman Sanjiv Goenka are optimistic though. "The proposed new business model for the Railways will enable greater participation by private sector. More wagons and other equipment would boost the economy and demand for transportation would expand. Simultaneously, railway finances will improve substantially."
"The budget represents a bold leap of faith, with targets that are very ambitious and offer enormous scope for further engagement with Indian industry, and great scope for innovative financing wedded to socially and commercially viable projects," Mr Goenka added.
Srei Infrastructure Finance Ltd chief Hemant Kanoria is also upbeat about probable private sector participation. But unlike Mr Goenka, he is not too sure about finances. "It is very refreshing to note that the minister is keen to ensure private investor's interest.
However, the roadmap of many of the projects announced and the way the requisite funds are to be raised are unclear. We await the details," Mr Kanoria said. What specially enthused infrastructure lending players like Mr Kanoria is the proposal to set up a task force to clear investment proposals within 100 days.
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Simplex Infrastructures director Rajiv Mundhra echoed: "This budget provides PPP format and 100 days target to resolve issues coming out of it. Further, the announcements such as no increase in freight tariff, and increased outlay for metro rail project are certainly encouraging for companies like us."Indian Chamber of Commerce vice president Jayanta Roy said: "It's a passenger friendly and growth oriented inclusive railway budget." Bharat Chamber of Commerce president Pavan Poddar said: "She acknowledged the social responsibility of unifying the country through rail connectivity. The budget aims at improving core competence, besides optimum utilisation of the rail assets." Ms Banerjee's largesse for northeastern states was expectedly hailed by Assam chief minister Tarun Gogoi and the state's trade bodies.
Mr Gogoi said he was happy that railway minister accepted his proposal to set up state-of-the-art wagon factory in Assam and other socially desired projects.
Federation of Industry & Commerce of North Eastern Region chairman RS Joshi felt that Indo-Bangla trade will expand rapidly when the proposal for railway link between the neighbouring countries materialises. "The wagon factory will be the first manufacturing activity of railways in the region," he said.
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The rail budget, however, has come as a shocker to Jharkhand, as there is no mention of the six pending projects. "Though the state has got a few trains, these will not improve passenger movement to a great extent. The Ghatshila-Howrah Memu, for example, was not required because there are already several trains connecting Howrah and Tatanagar, which stop at Ghatshila," said Federation of Jharkhand Chambers of Commerce and Industries president Anchal Kinger.Start a SIP with as low as ₹500 with ET Money App!
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