Economy and Business  

Railway budget: Key issues 
not addressed 

What is India News Service, 07 July 2004, 1700 hrs

Corporate India feels the railway budget has not addressed key issues like structural reforms and better financial management of its resources. The railway budget paved way for investors, institutions and speculators to buy stocks across sectors, pushing the Sensex high. The Karnataka government wants to give more weightage to biotechnology as it has the ability to provide indirect employment by the way of engaging farmers. Media buyers expect advertisers to pump in large sums of money on cricket, which is all set to take centrestage in primetime television.

Industry leaders are of the opinion that the railways needs to become efficient and productive and hopes that promises of railway minister Laloo Prasad will be implemented. Apart from a few progressive measures like modernisation, e-procurement and enhancing safety, the railway budget has not addressed key issues like structural reforms and better financial management of its resources says corporate India. It also sought a review to identify loss making operations and control costs.

The Sensex climbed high by 89 points to close at 4,929. With the expected 5 per cent charges in freight rates not coming through, investors, institutions and speculators to buy stocks across sectors. Tuesday's rise in the market added Rs 18,000 crore to investors wealth as the BSE's market capitalisation closed higher at Rs 10,56,145 crore. Market players say that if the railway budget is any indication, the main budget on Thursday will also be a good one for the market.

The Karnataka government is contemplating suitable revisions to its much publicised 'Millennium Biotech Policy', to catch the attention of the rural masses. The focus now is to bring in the farmer community into the biotech picture. There is now a concerted move to tap into the abundant wastelands in north Karnataka where medicinal plants could be grown. Since bitech has the ability to provide indirect employment by the way of engaging farmers, the government is tempted to give more weightage to biotechnology while still continuing to support IT. 

With cricket all set to take centrestage in primetime television, media buyers expect advertisers to pump over Rs 500 crore, the highest amount to be spent on cricket in the last five years. The next six months will witness five back-to-back cricket events featuring India. In between there is Olympics in August. Key spenders according to media sources will be oil, telecom, consumer durables and auto companies. They also add that the two emerging spending sectors are insurance and female-centric brands, considering that the general viewing interest of cricket is going up among women.

Overall:

Railway budget lack reforms: Corporate India feels the railway budget has not addressed key issues like structural reforms and better financial management of its resources.

Railway budget boosts Sensex: The Sensex climbed high by 89 points to close at 4,929.

Karnataka government to focus on Biotech: As it has the ability to provide indirect employment by the way of engaging farmers.

Cricket to woo advertisers: With cricket all set to take centrestage in primetime television, media buyers expect advertisers to pump over Rs 500 crore, the highest amount to be spent on cricket in the last five years.