Ms. Mamta Banerjee's second Railway Budget has turned out to be a non-event from the stockmarket point of view even though certain key points are worth highlighting, which makes this Railway Budget somewhat different from the earlier ones:
• The release of the 'Vision 2020' document aimed at widening and strengthening the country's rail infrastructure network and regaining the position of the world's second largest network.
• Ambitious target of completing 1,000 route-kms of new lines in 1 year as compared to the last 5-year average of 219 route-kms and 180 route-kms in the last 58 years.
• Special emphasis on building Public-Private-Partnership (PPP) and proposal to set up a special task force to clear investment proposals within 100 days, thus taking care of the administrative and procedural delays.
In conclusion, the fact that the Railway Budget spared any hike in passenger fares and freight rates will undoubtedly please both - the common man as well as corporate India. Further, with the Minister showing continued inclination towards an increase in private participation in the years to come, opens up immense opportunities for the private sector to contribute to the growth story of Indian Railways. Overall, the Railway Budget can be stamped as a positive one with a visionary agenda set for Indian Railways to follow over the next decade.
By Hitesh Agrawal, Head – Research, Angel Broking
Thursday, February 25, 2010
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