Rail budget gets thumbs-up from steel industry

Indian steel-makers gave a thumbs-up to the Rail Budget, saying infrastructure spending promised by the government will help increase steel demand. The government hopes to invest Rs.1,21,000 cr on Indian Railways and Rail Minister Suresh Prabhu´s plan includes commissioning 2,800 km of broad gauge conversion and 2000 km of railway electrification, two new dedicated freight corridors, port connectivity, suburban railway projects and station redevelopment. JSW Steel Chairman Sajjan Jindal said the plans augur well for giving a fillip to steel demand. ´We welcome the announcement of a review of freight tariff policy to evolve a competitive freight structure and increase the share of railways vis-a-vis other modes´ Jindal said.