Comments from ISA on Railway
Budget 2004
July 6, 2004 : Indian Steel Alliance (ISA) welcomes the
Railway Budget 2004. While the steel industry is happy that status quo has been maintained
on freight rates, it was hoping that the inflated mileage on the K. K. line would be
withdrawn and some rebate would have been provided for rail consignments from plant to
port destinations. There is still hope to rationalise the current freight rates, as they
are still higher than those in developed nations in terms of P.P.P.
The initiatives outlined in the Budget regarding introducing new trains, adding more
routes, upgradation of several routed from Narrow Gauge to Broad Gauge and doubling of
tracks on several routes will certainly give a fillip to steel demand in the country. With
the steel industry planning another round of capacity expansion, ISA hopes the Government
will take steps to strengthen linkages between steel producing plants and steel
markets/ports to make the industry more efficient and competitive.
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