Sandeep Fuller, managing director, Kalindee Rail says the Railway Minister’s thrust on capacity augmentation in the Budget announced today will go a long way for the Indian Railways.
Railway Minister Suresh Prabhu said the government will partner with private sector to improve rolling stock fleet. The railways will also focus on adopting a medium-term perspective to focus on adopting a medium-term perspective.
One of the key things with which the Railway Minister started was that he mentioned about the vicious cycle of under investment. So, he has set the trend by giving a very systematic development of what are his goals, what are his way forwards and what are his thrust areas.
Amongst the thrust areas there is a major thrust on capacity augmentation which is welcome and which will go a long way in improving the performance of the railways. Besides this he has also talked of increasing the total freight haulage to 1.5 billion tonne which is big target but it is definitely achievable with introduction of better wagons, improved wagon leasing scheme which he is looking at and improved and new designs of wagons to be coming in.
On the whole he has targeted an investment of Rs 8.5 lakh crore over the next five years and that should augur well for the industry as a whole.
When you execute a project in any state it is essential that the state governments also participate because they are also a party to the whole project and the spin-offs thereof. So, participation from the state governments can definitely be looked at.
The only thing is that the project has to be of interest to the state, it has to be advantageous to the state. I would expect that states would come forward and help out in projects which are good for them.