After the Railway Minister PK Bansal hiked rail freight fares in the Railway Budget 2013-14 today, S Narsing Rao, chairman and managing director, Coal India doesn't see the hike having any direct impact on the company. Rao says it is the power generating stations that would be affected considering they depend on railways as a source of transportation.
On the Railway Budget announced today, Rao is doubtful if anything the Railway Minister announced today will help the company at all.
Below is the edited transcript of Rao's interview to CNBC-TV18.
Q: What impact will the freight rate announcement in Budget today have on Coal India?
A: It would not have direct impact on Coal India because the rail freight is entirely passed through to the consumer. So, basically power generating stations who are depending on the rail as a source of transportation would be affected.
Q: Will you miss your production target for this year due to the lack of railway connectivity? Is that going to be a huge issue?
A: No. However, once the Mand-Raigarh rail links are done, then there will certainly be improvement, but that is one of those three railway lines what the minister has announced today.
Q: Are you satisfied with the Railway Budget that was announced today? And will Coal India be on track for coal production for the 12th plan target is concerned?
A: I wonder if this particular project and whatever the minister has announced would come to our rescue in the 12th plan at all. I have serious doubts about that because it is a line and it takes time.