Tata Steel hails Rail Budget
Leading domestic steel maker Tata welcomes the Railway Budget 2008-09 saying it promises a lot of action and has many initiatives which can be taken forward.business Updated: Feb 26, 2008 22:42 IST
Leading domestic steel maker Tata has welcomed the Railway Budget 2008-09 saying it promised a lot of action and has many initiatives which could be taken forward.
"The budget promises a lot of action and it has many initiatives that can be taken forward. We would also like to congratulate the Minister (Lalu Prasad) for presenting a surplus budget of 25,000 crores and provisions for use of IT and also proposal for investment in infrastructure," Tata Steel Chief Operating Officer H M Nerurkar said in a statement.
He said there has been no increase in the freight in comparison to last year and there has been no adverse effect compared to previous year.
"But we were expecting a reduction in freight for raw material and steel as the Indian freight rate is the highest in the World," he said.
Prasad has announced ambitious plans for 2011 wherein the total carrying capacity will be 1,100 MT, out of which steel-related capacity will increase to 200 MT compared to 110 MT on Tuesday. This indicated that railways would not be able to meet the demand, he pointed out.
"This means that a part of the traffic has to be diverted to means other than rail. We expect that the Budget must have an aggressive scheme to take care of this traffic," he said
Doubling railway routes for iron ore transfer, like Manoharpur- Goilkera route, Jagdalpur route, construction of new lines at Dalli- Raoghat in Chhattisgrah for easy movement of ores will be beneficial for Tata Steel's expansion programme, he added.