Rail Budget 2012: Need to focus on finances, says ICICI Securities

NEW DELHI: The focus of the Railway Budget 2012-13, which will be presented on March 14, should be to put the finances in order, ICICI Securities said.

The operating ratio of the railways has remained very high and its cash reserves have also been declining.

In the backdrop of the recent hike of around 20% in freight rates, ICICI Securities said it is likely to remain unchanged.

Upper class passenger fares, which have not been changed since 2002-03, may be considered
for revision by the railway minister, it added.

Also See: Budget 2012 | Union Budget | Rail Budget 2012 | Budget News

Many groups are urging the government to shore up the finances of the railways.

Earlier, industry lobby Confederation of Indian Industry (CII) urged greater private sector participation in India’s railway sector.

In its pre-Budget memorandum to the Railway Ministry, CII has called for clear guidelines to attract private investments. Currently, investment through Public Private Partnership (PPP) represents just four per cent of all rail investment.