Mixed reactions to Mamata's Rail Budget

Mamata Banerjee's Railway Budget evoked mixed reactions. While corporate India welcomed the moves made by the railway minister, opposition political parties flayed the budget calling it a fantasy and opoortunistic. Read on...

 India Inc on Friday hailed the Railway Budget 2009-10, which proposed no hike in freight rates or passenger fares, and termed it as "industry friendly and progressive."

The announcements like linking industrial clusters to markets, introduction of projects under PPP mode and setting up of land banks for commercial and industrial use of railway land would lead to economic development, the industry said.

"This budget is unique in the way inclusivity and overall development has been the focus without losing focus on safety, technology adoption and commercialisation. . .," CII President Chandrajit Banerjee said in a statement.

It has provided opportunities for industry though its capacity expansion programme and setting up infrastructure through PPP mode, he said.

"The Railway Budget 2009-10 is clearly a progressive and a forward looking budget," FICCI President Harsh Pati Singhania said.

Railways Minister Mamta Banerjee has mooted a number of projects that would carry railways to the next technology level, he said.

The industry said Banerjee has presented a people and industry friendly budget since no increase in passenger fare and freight tariff has been proposed.

"The industry is pleased that the minister has not increased freight tariff. . .," FICCI said.

"In totality the budget proposals will provide for inclusive growth and at the same time ensure expansion of railways," Assocham President Sajjan Jindal said.

Assocham, however said elaborate steps and proposals are "somehow missing" for modernisation of railways to take it on par with the modern management.

PHDCCI also said no concrete steps have been outlined in the budget to address capacity constraints on the high density corridors, improvement of terminal and logistic management.

"Growth of railway traffic faces a major constraint due to saturation of track capacity and much more needs to be done in terms of immediate measures for enhancing track capacity for carrying more freight," was the reaction of PHDCCI President Satish Bagrodia.

Meanwhile, Gaurav Dua, head (research) at brokerage firm Sharekhan said the budget is more reformist than populist.

Welcoming the budget proposal for introduction of several non-stop trains, exporters body FIEO said that two coaches in these trains can be attached for sending goods to ports and airports as freight charges for these will be much competitive and expeditious delivery of goods will help to save time.

". . . super-fast parcel services will facilitate and expedite movement of goods," FIEO President A Sakthivel said. He also said initiatives such as introduction of temperature control perishable cargo terminal and increasing targets for carriage of freights would facilitate trade logistics.

Retail players thumps up Railways move

Retail industry players said the railway ministry's proposal to develop multi-functional complexes, with shopping malls and food stalls at various stations, will open up big opportunities for the sector.

Future Group, which operates retail chains like Pantaloons and Big Bazaar, said such a step will facilitate optimum utilisation of the huge railways infrastructure.

"This is an announcement which might well prove to be a big boost for growth of modern retail. Besides, the huge real estate of the Railways and its logistics capabilities will help us use the infrastructure as a supply chain," Future Group chief executive officer Kishore Biyani told PTI.

Asked if the Future Group is likely to explore the Railway Ministry's proposal, Biyani said: "We have earlier explored the opportunity and we might again look at it."

While presenting the Railway Budget 2009-10, Railway Minister Mamata Banerjee announced the construction of multi-functional complexes at stations for providing facilities like shopping, food stalls and restaurants.

"It is proposed to take up development of these multi-functional complexes in different parts of the country at 50 railway stations, serving places of pilgrimage, industry and tourist interest this year," she said.

Raliway Budget 'unrealistic, based on fantasy': BJP

The Bharatiya Janata Party on Friday described the Railway Budget as "unrealistic and based on fantasy" and accused Railway Minister Mamata Bannerjee of ignoring vital aspects like security and expansion activities.

"I felt I was hearing a fairy tale when the Railway Budget was being presented," BJP spokesperson Sushma Swaraj said.

She accused Banerjee of not giving enough attention to key issues like security and expansion of railway

infrastructure.

On non-stop train from Delhi to Chennai, Swaraj sought to know, "Will railways get enough passengers for the train and that too everyday. Will it stop to change drivers, TTE, cleaner and other staff. Will stale food stored for 48 hours be served to passengers?"

However, the party welcomed three measures announced by Bannerjee. "On behalf of BJP, I welcome the introduction of special train for ladies, the young and Rs 25 passes for those from the unorganised sector," Swaraj said.

Leader of Opposition in the Rajya Sabha Arun Jaitley described the Railway Budget as one "without a vision...which ignores the big picture".

"The last six Railway Budgets have promised world class stations but till now we have not seen even one," he said.

Rail budget planned with Assembly polls in mind: CPI(M)

The CPI(M) said Mamata Banerjee had prepared the Rail Budget with the 2011 West Bengal Assembly elections in mind.

"Yes, it is almost that," senior CPI(M) leader Basudeb Acharia told reporters when asked whether the budget was the Trinamool Congress' manifesto for the Assembly polls.

However, Acharia and CPI National Secretary D Raja welcomed several "positive" features like no raise in

passenger fares or freight charges and the concessions given to various sections of people.

"The new trains, most of them for Bengal, have been announced keeping these elections in mind. Most of the new trains announced outside Bengal were announced by (her predecessor) Lalu Prasad earlier," Acharia said.

Referring to the announcement of constructing a 1000 MW power plant, he said "without acquiring land at Adra, she has proposed building of this power plant. It is a big project which will require at least 1,000 acres of land."

"I don't know how she will acquire land for this. She has been opposing land acquisition and now she proposes land acquisition," the CPI(M) leader said.

Jayalalithaa says Mamata's focus is on vote banks

Charging Railway Minister Mamata Banerjee with neglecting South India, particularly Tamil Nadu, in the budget, AIADMK leader Jayalalithaa said she appears to be more focussed "on her vote bank" as most of the major projects have been "earmarked" for West Bengal.

"Banerjee's focus appears to be on her vote bank. Almost all major projects announced by her are earmarked for places like Lalgarh, Nandigram and Singur in West Bengal," she said.

"South India, particularly Tamil Nadu, has not figured in her scheme of things at all," Jayalalithaa said. In the process, infrastructure development and expansion of world's largest railway network appear to have been sidelined, she charged.

"Without substantial investment in these key areas, the proposals announced by Mamata Banerjee will be largely decorative and lacking in long-term perspective," she said.

Banerjee's presentation was more in the "feel good" vein and did not deal with hard numbers, "making one wonder whether the positive picture of a profit-making Railway setup painted by the UPA during the Lalu Prasad era was a mirage and whether a cover-up operation is now under way", she said.

"In a nutshell, the Union Railway Minister has merely wielded a magical brush and gives a non-existent gloss to harsh realities," she said, adding "a lot more was definitely expected from Mamata Banerjee."