Title - Focus on infrastructure a welcome move: SAIL

BOKARO: The railway budget holds huge importance for the Bokaro Steel Plant (BSL) as well as for its parent company Steel Authority of India Limited (SAIL).Despite the 5% rise in freight tariff, SAIL described the budget as growth oriented. BSL is fully dependent on the railways for transportation while it supplies products for manufacture of railway wagons and coaches. The railway budget holds significant promise for the business of the BSL.SAIL chairman C S Verma on Tuesday said the railway budget had come at a time when the Indian economy is faced with difficult choices. "We welcome the railway budget, which is growth-oriented, while aiming for financial sustainability."The budget has a 20% higher plan outlay of Rs 63,360 crore in 2013-2014 over this year's estimated budget, which augurs well in enhancing the railway infrastructure, which is need of the hour. For the steel and mining industry, the last mile connectivity planned for some ports and mines will facilitate the competitiveness of our industry, he said.Verma said the investment planned by Indian Railways in the 12th Five Year Plan of Rs 1,000,00 crore, through the PPP mode was eagerly awaited by the steel industry. "The thrust of the rail budget on new projects like DFCC, new coach manufacturing plants, upgrading stations, doubling of lines/ gauge conversion will definitely boost steel consumption as Railways are one of the largest consumers of steel in the country."

The increased investment will spur steel consumption at a time, when large capacities for steel are being installed by SAIL,

which shall be beneficial to the company. Verma, however, said the hike in freight tariff was estimated to have a negative implication of Rs 200 crore per annum on inward traffic and around Rs 100 crore per annum on outbound finished goods traffic.

A BSL officer said the SAIL had significant linkages with the railways at two levels while its plant like Bhilai and Durgapur supplies rails, wheels, excels and fish plates to the railways, it also depend on railways for their incoming and outgoing goods transportation.