Economy & Business  

Rail budget proposes rescue institute, no hike in fare and freight rates 

What is India News Service, July 6, 2004, 1700 hrs IST

In his first rail budget, Laloo Prasad Yadav announced no increase in fares for any class or freight rates on any commodity.

The focus, the minister said, would be on infrastructure development and safety.
He is planning to borrow Rs 3,400 crore from the market in FY05.

While passenger earnings were down to Rs 13,920 crore in this financial year, freight 
earnings moved up to Rs 28,745 crore.

Laloo also announced 15 new express trains. He added that frequency of 12 trains will be increased. He also said train protection and warning systems would be introduced. He said he would set up an institute of rescue and medical relief in Bangalore.


Hard decisions: Just days ahead of the union budget, the Planning Commission indicated it would have to take tough decisions. 

Montek Singh Ahluwalia, who took charge as its deputy chairman, identified health, education, agriculture and infrastructure as crucial areas, and said hard decisions were a must if the economy had to attain the targeted 7-8 per cent growth.

RBI announces policy: Banking stocks took a beating as a fallout of the RBI's policy announcement restricting holdings in private sector banks. Removal of the 10 per cent cap was something private sector banks had been looking forward to, but the Reserve Bank has not obliged. "RBI's move will scare away foreign investors," said V Raghunathan, president of ING Vysya Bank. Not everyone shares this sentiment. "The RBI is sending out a strong message that it is equally keen on taking care of the interests of the depositors and not merely that of investors," said K R Ramamoorthy, former chairman and managing director of Vysya Bank, now a consultant.

Wadias talking to Vancouver airport: The Wadia group, promoters of Bombay Dyeing and Britannia, is talking to Vancouver Airport Company in its efforts to float a joint venture to bid for the Delhi and Mumbai airport development projects. Group director Jehangir Wadia indicated his company would hold only 10 per cent stake in the venture.

Reddy Labs may focus on dermatology: The NySE-listed Dr Reddy Labs is keen on doing specialty pharmaceuticals. "While the medium term outlook is favourable for generics industry, some large generic players have already started their transition to specialty pharmaceuticals," chairman Dr K Anji Reddy said in the company's annual report. It has identified the dermatology segment as an entry point into the specialty business.

Overall:

Train fares remained the same: Laloo Prasad Yadav's first rail budget proposed a rescue institute.

Cap on private sector banks remained: The RBI announced its policy on private sector investment in banking.

Wadias want to bid for airport project: They are talking to Vancouver Airport Company so that they can jointly bid for the Mumbai and Delhi airport development projects.

Reddy Labs chose to go specialist: Dermatology could be its area of specialisation.