Interestingly, the industrial chambers have not given any comment on passenger fare hikes.

The chambers further felt that the government should continuously try to increase their freight loading capacity and make adequate investment in the rail infrastructure to woo back the users from other alternate modes of transportation.

The Federation of Indian Chambers of Commerce and Industry (Ficci) senior vice president Sudhir Jalan said: "This signals the efforts by the Railways to put an end to cross subsidisation of the passenger traffic at the cost of freight earnings. The railway minister's observation that there is no room for further increase in the freight rate is laudable and realistic."

"Any increase in the level of freight rates would be a burden on the economy as well as the rail users. But the budget has not spelt out inclear terms the future strategy for privatisation."

Ficci suggested that the government should give land adjoining the tracks on long lease for setting up hotels, motels and recreational centres so as to generate additional revenue. Additionally, the railways should augment wagons and containers and give focussed attention to multi-modal transport, Ficci said.

Confederation of Indian Industry (CII) president Rajesh V Shah said: "Railway budget would spur economic activity and stimulate demand in the economy."

"But the operating ratio of 91.2 per cent proposed in the budget is a matter of concern."

"The government should cut down on unnecessary wasteful expenditure to at least reach the 1996-97 level of 86.2 per cent. This could be achieved through efficient utilisation of assets, prudent spending in construction activities, purchase of materials in a cost effective manner, checking wastage, leakage, preventing ticket less travel."

"Maintaining the railway freight at the previous levels while givingsome relief to certain industries like steel, which have been badly hit by recession, and have bulk traffic movements are significant steps in the right direction."

Associated Chambers of Commerce and Industry of India president L Lakshman:"The government could solve problems of declining budgetary support and internal revenue generation by evolving new instruments of financing, improving efficiency and by corporatisation and finally, privatising many of the functions at present carried by the Railways." "The Plan Outlay for 1998-99 at Rs 9,500 crore as compared to Rs 8,300 crore last year was too low to meet the requirements of the Railways, or to give fillip to railway related industrial activity."

Arvind Pande, chairman, Steel Authority of India: "There was an increasing trend of moving materials by road, due to cheaper freight rates compared to rail. This will be checked to some extent now. The landed cost of our finished products will now be cheaper at distant destinations. The customer will be thebeneficiary."

"However, higher inward freight rates on our raw materials like coking coal, iron ore etc will hit us, since most of our steel plants are within 500 km of the supply source. On the whole we welcome this budget which attempts to contain the increase in freight rates to moderate levels."

PHD Chamber of Commerce and Industry (Phdcci) president O P Vaish: "The steps announced by the railway minister would actually limit the cross subsidisation of low passenger fares by the high freight rates. Cheaper freight rates for coal, cement, iron and steel would result in reduction of prices of these important commodities.