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.
Steel prices may go up by 5-8 percent from April due to 5.8 percent increase in rail freight charges on the movement of iron ore as well as finished steel.
After announcing a Railway Budget with no fare hikes, despite the fuel hike that will cost the Indian Railways Rs 850 crore, Railway Minister PK Bansal says he is just trying to meet the aspirational needs of the people.
Sachin Bhanushali, Gateway Rail Freight told CNBC-TV18 that increase in freight rate alone, is not a good thing to happen and he was expecting a bit of fuel surcharge on the passenger fare as well.
The commute of Mumbai citizens is expected to get a little better in the current financial year with the announcement of additional services and safety measures in the Rail Budget.
With an eye on elections, Railway Minister PK Bansal was forced to keep passenger fares unchanged despite railways suffering huge losses.
Here is a look at provisions introduced by the Rail Minister PK Bansal in his Budget.
Last year‘s Budget had pegged the plan outlay for FY13 at around USD 11billion, based on the premise that a large chunk would be financed through internal revenue generation.
PK Bansal, CFO, Omax Auto, in an interview to CNBC-TV18 said because of market conditions and their commercial vehicle unit not doing well, they will post lower revenues amounting to Rs 1,150 crore in FY13 compared to Rs 1,287 crore which they posted in FY12.
With the rise in diesel price putting an additional burden of Rs 3,300 crores on Railways, its Minister PK Bansal today did not rule out another round of hike in passenger fares.
PK Bansal, Parliamentary Affairs Minister and Water Resources Minister urges the government to bring forth legislations which it intends to take up for discussions.