India Inc is a tad disappointed with the unchanged freight rates, but has welcomed the Railway Budget in general. “We were expecting some relief in freight rates, but we can draw satisfaction that they were at least not increased,” chairman and managing director ofVideocon Industries Venugopal Dhoot told Financial Chronicle.

President of Cement Manufacuturers Association and managing director of Shree Cements H M Bangur said: “Despite an increase in diesel price, its heartening to know that freight charges have not been increased.” However, managing director of ACC Sumit Banerjee was less enthusiastic: “This is a contemporary budget with some new thoughts and directions. But as far as cment industry is concerned it is a neutral budget.”

Industry representatives pointed dout that rail minister Mamata Banerjee has used her experience of holding that portfolio earlier under the NDA regime and sought to complete some of the stalled reforms such as those meant to providing better connectivity and staff welfare.

To increase the ambit of revenue generation through freight rates, Banerjee proposed that the Railways would now create capacity for carrying automobiles and fly ash. “This is a good step because it will help in raise revenue,” Chandrajit Banerjee, CII director general Chandrajit Banerjee said.

“Linking industrial corridor with markets is a positive step that will help small and medium enterprises (SMEs) the most,” said Ficci president Harsh Pati Singhania said.

The decision to set up a new coach factory at Kanchrapara-Halishahar railway complex has caught the attention of the Bengal industrialists. Ambuja Realty chairman Harshvardhan Neotia said that the budget could have spin-off benefits for the state, but he added that no conflict of interest would ensue between Banerjee’s state specific reforms and her arch rivals the Left-front government. “After all, the reforms she has suggested would benefit the people at large,” he said.

Vice-chairman and managing director of Transport Corporation of India D P Agarwal said the decision to utilise untapped assets like the railway land for commercial purposes would have a positive impact on the logistics sector.

Chairman of the Kolkata-based Ruia Group Pawan Kuman Ruia said increasing the number of wagons to be procured by the Railways to 18,000 from the present 11,000 would give a boost to employment. However, he said, there were no major departures from her predecessor Lalu Prasad Yadav’s vision. “There may be a slight change in approach from Lalu Prasad but her overall vision is very much the same as his,” he added.

(inputs from Vivek Sinha and Parul Chapparia)