​Interim Railway budget only talked about vague numbers Ramesh Chandak, KEC International

In a chat with ET Now, Ramesh Chandak, MD & CEO, KEC International Ltd, shares his views on the interim Railway budget. Excerpts:

ET Now: What are your initial thoughts on the interim Railway budget?

Ramesh Chandak: The industry was expecting more concrete proposals relating to the dedicated freight corridor, because it is very important for the industry. That did not come about and that is the main worry.

The minister only talked about some achievements, which are all based on vague numbers and nothing concrete. There have been no concrete proposals, nor any strategy and nor indeed anything to really improve the efficiency, or the services of the railways. So there is nothing in the budget, according to me.

ET Now: Were you expecting something?

Ramesh Chandak: Definitely. We were expecting more concrete proposals on the dedicated freight corridor, or at least the intention of the government, in terms of when they would be starting or completing the project.

He talked vaguely about some numbers here and there. This dedicated freight corridor has been delayed for many years now and it is still not clear when it will get completed.

ET Now: There was also an expectation regarding FDI in railways. Were you disappointed that it was not touched upon?

Ramesh Chandak: Yes, for sure. The way that the railways run, they normally do not generate a lot of cash. Today, everybody wants FDI in industries for them to grow faster, so that services to the population can be delivered faster, but nothing has come about on those lines, which according to me is a disappointment.

ET Now: Three months from now, in all probability, we will have the full budget. Apart from the dedicated freight corridor that you spoke about, is there anything else that would be of vital importance, according to you?

Ramesh Chandak: I will expect more efficiency. Right now, everything is getting transported by trucks and we need more efficiency and a more confident freight system, as a result of which, people can start using the railways more and with a lot of assurance.

The railways can bring down the cost of transportation quite a bit and we expect that some announcement on the transportation of industrial goods happens faster and also a concrete proposal on the dedicated freight corridor.

ET Now: You will be speaking to a number of industry people as well? Are there expectations on the freight rate as well because typically every year, we hear some bits about freights on essential commodities, on industrial commodities, are there any expectations that the industry at large would be having?

Ramesh Chandak: With the current cost with the railways, I do not think they can change the cost much, according to me. So I do not expect there will be a reduction in the freight cost.