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Rail Budget will not impact road sector: TCI
Vineet Aggarwal, ED, TCI says that the Rail Budget will have no direct impact on the Road sector. He adds that the railways has been losing out specifically on the volume business since that is still with the roadways.
Vineet Aggarwal, ED, TCI says that the Rail Budget will have no direct impact on the Road sector. He adds that the railways has been losing out specifically on the volume business since that is still with the roadways.
Excerpts from CNBC-TV18's exclusive interview with Vineet Aggarwal:
Q: What do you materially stand to gain from the Railway Budget ?
A: I think that the Railway Budget per se has no direct impact on the road sector - specifically this one because there has been a cut in freight rates only in specific areas, which anyways did not go to the road sector.
The railways has been losing out specifically on the volume business since that is still with the roadways and inspite of the fact that the economy is growing at 9%, the railways should grow by at least 10-12% whereas the minister has taken a target of only 8-9% in freight growth.
Q: Even so, with the fact that the freight rates have been left unchanged, there are some sops in terms of overloading for open wagons as well. Does that not make any impact to you or would you have to revise your rates?
A: The increase in the tonnage will not have a major impact on the road freight rates in the country. So at this point in time, I do not expect a major impact on the freight rates but definitely the Railway should do a lot to augment the capacity as well as increase a rotation of the wagons, so that they are available faster and the rate can come down eventually.
A: I think that the Railway Budget per se has no direct impact on the road sector - specifically this one because there has been a cut in freight rates only in specific areas, which anyways did not go to the road sector.
