The trade and industry on Tuesday showered overwhelming accolades on the 2008 Railway Budget terming it as the “most pragmatic, progressive, forward looking and futuristic budget, which will make Indian Railways one of the best world class institutions”.

The industry significantly welcomed the fare and freight proposals of the Budget saying these would be “anti-inflationary” in nature.

Hailing the Railway Budget the Confederation of Indian Industries (CII) President Sunil Mittal said the Railway Minister has focused on building capacity for the future by making the required investments in infrastructure. The projects for port connectivity, freight corridors, container terminals and improved passenger amenities will go a long way in making India’s railway network more modern and efficient, he said.

CII welcomed the partnership with the private sector, opening up yet another avenue for the industry to participate in the “spectacular” growth of Indian Railways.

The reduction in the freight rate for petrol and diesel by 5 per cent will help offset to some extent the impact of the hike in fuel prices, it said. The Federation of Indian Chamber of Commerce and Industry (FICCI) President Rajeev Chandrasekhar welcomed the Railway Minister’s announcement of cuts in passenger fares and freight rates, particularly on diesel and petrol.

“This is a good and strong anti-inflationary measure,” he pointed out.

A slew of proposals in the Railway Budget seeks to strengthen and expand the traffic handling capacity of  which will be able to take care of the requirements of India’s growing economy, FICCI Chief said.

Taking note of Railway’s proposed investment of a massive Rs 2,50, 000 crore in improving the country’s railway network, he said this was a radical step to augment the railway’s capacity to meet the huge traffic requirement of the economy.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) President V N Dhoot complimented the Railway Minister for presenting the “most pragmatic, progressive and futuristic budget”. He said the commitment to generate Rs 1 lakh crore additional investments in next 5 years through PPPs (public-private-partnership) for Railways is “especially praiseworthy”.

Dhoot said with the introduction of over 53 new trains, the Railways would pose tough competition for road and air traffic.

Rajeev Jyoti, President and Managing Director, Bombardier Transportation said the Budget has reflected the need to have PPP to facilitate large-scale expansion in the railways infrastructure.