The announcement of a review of the freight tariff policy for evolving a competitive freight structure and increasing the share of railways vis-à-vis other modes is a welcome step, Sajjan Jindal, Chairman & Managing Director of JSW Group, said.
“This will help in bringing down overall logistics cost for the industry and improve our competitiveness. In spite of the operating ratio standing at 92% due to absorption of the full implications of the Seventh Pay Commission recommendations, it is heartening to see that the railway minister has earmarked Rs 1,21,000 crore towards capital investments, a growth of 10% y-o-y,” Jindal said.
“This will provide the much-needed impetus to kick-start the investment cycle in the country. Plans for commissioning 2,800 km of broad gauge conversion and 2,000 km of railway electrification in FY2016-17, new dedicated freight corridors, port connectivity, suburban railway projects, station redevelopment work, etc augur well for giving a fillip to steel demand in the country,” he added.