Title - Industry seeks better rail connectivity

The industrial sector has called for speedy implementation of key railway projects such as the dedicated freight corridor, high-speed rail corridors, rolling stock and other capacity enhancement works.R Sethuraman, director-finance and corporate affairs, Hyundai Motor India Ltd., told City Express that the government should consider the long-pending request of the industry for rail connectivity to Sriperumbudur and Oragadam belts without further delay.He said that Sriperumbudur and Oragadam, where numerous multinational companies (automobile, auto component and electronics manufacturers) have set up bases to cater to the global market, had seen fast growth in the last decade.“Due to the high level of industrial activity coupled with the presence of a large number of educational institutions in the area, there is heavy congestion. Transportation of large number of employees and material on time is getting increasingly difficult,” he said.

Interestingly, the Confederation of Indian Industry (CII) has said that investments in rail infrastructure are of high priority as they add efficiencies to national competitiveness and reduce transaction and supply chain costs.

Chandrajit Banerjee, director general of CII, commended the recent increase in passenger and freight rates. He said that higher revenues would offer more opportunities for targeting a zero-tolerance approach to issues in safety. Modernisation and technology upgradation of signalling, train protection warning system, and integrated security systems must be addressed in the Rail Budget, he said.

CII’s major suggestions for development of Indian Railways include improved project implementation, streamlined and time-bound approvals, project terms for ‘reasonable’ returns on capital for investors, and more efficient vendor management.

The industry also feels that in the long term, Indian Railways would need to look at heavier, faster and longer trains, plugging gaps in rolling stock supply, modern technologies for safety, better cargo handling, and other issues to improve performance.

Capacity creation in Indian Railways could be fast-tracked through key initiatives to encourage public-private partnerships (PPP). “Indian Railways envisages increasing of revenues by three times to Rs 2.7 lakh crore in the next 10 years and this will be possible only if private investments are encouraged and expanded,” said Banerjee.Currently, the industry awaits changes in policies relating to wagon leasing, private freight terminals, special freight train operations and others that would promote private sector participation in the rail sector. Banerjee observed, “Consultations need to be held with stakeholders other than rail users, including logistics players, financial investors, and industry sectors for implementing rail projects.”On taxing and price issues, CII recommended periodic changes in freight classifications and charges, with prior intimation to industry for greater stability and predictability. A system of ‘Premier Customers’ or users contributing more than Rs 1,000 crore annually could be considered. CII emphasised that signalling, telecommunication and electrification material should be brought under Section 14 of CST Act and standardised to a rate of 5 per cent.For better vendor management and procurement, Indian Railways must change procedures, said officials from the CII.