New Delhi: Government should take steps for speedy implementation of key railway projects such as the dedicated freight corridor, high-speed rail corridors and other capacity enhancement works in order to reduce supply chain costs, industry body CII has said.
Ahead of the presentation of the rail budget on February 26, the chamber said that investments in the rail infrastructure should be on high priority list as they add efficiencies to national competitiveness, reduce transaction and supply chain costs.
CII Director General Chandrajit Banerjee said the rail budget should focus on the modernisation of signalling and other security systems.
For growth and development of the railways sector, the chamber suggested for improved project implementation, time- bound approvals and more efficient vendor management.
"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," it said.
It also said that capacity creation in Indian Railways could be fast-tracked through key initiatives to encourage PPP.
Further, increasing revenues by three times to Rs 2.70 lakh crore in the next ten years would be possible "only if private investments are encouraged."
CII asked the government to include logistics players and financial investors in the list of stakeholders for consultations before making any policy.
On taxing and price issues, it 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," it added.