SK Nevatia, CMD, Hind Rectifiers is not sure as to how increase in freight cost will help the company because freight things mostly run on diesel. However, Nevatia feels the Budget this year is better than the previous year.
With one eye on the upcoming elections, railway minister Pawan Kumar Bansal refrained from hiking passenger fares. Instead the minister announced a marginal increase in freight charges, supplementary charge, superfast charge, reservation charge, cancellation charge and Tatkal charge.
Speaking to CNBC-TV18, SK Nevatia, CMD, Hind Rectifiers said he is yet to figure out how the marginal freight hike will impact his company. However, Nevatia feels this year’s Rail Budget is better than the previous year. "I am happy with the electrification of the 1,200 kilometers. 450 narrow gauge to broad gauge change and AC EMU in Mumbai and metros in Kolkata, these are the positive signs," he told the channel.
Below is the verbatim transcript of SK Nevatia's interview on CNBC-TV18
Q: What is your view of what has come out in the Budget? Are you happy, unhappy and secondly with respect to the dedicated freight corridor itself how would you react to this 1,500 kilometers that will be awarded next year?
A: I am happy with the electrification of the 1,200 kilometers. 450 narrow gauge to broad gauge change and AC EMU in Mumbai and metros in Kolkata, these are the positive signs. Now dedicated freight corridors, how it would have helped the Hind Rectifiers is a bit doubtful because freight things run mostly under diesel. So, it doesn't affect Hind Rectifiers, the freight corridor things. But these are the positives.
Q: How is your own stock, company benefitted or otherwise from your own personal standpoint? Is this a better Budget than last year or you have your doubts?
A: For us this is better than last year. Last year we did not find anything worthwhile. Comparatively this years Budget seems to be better for us than the previous year.