Railway budget to give impetus to IT sector

Charu Khera

New Delhi

March 3rd, 2008

The recently presented economy-driven Railway Budget 2008-09 with emphasis on
the public-private partnership, has come as a pleasant surprise to all. As per
the budget, the gross traffic receipt (GTR) for 2008-09 has been estimated at Rs
81,901.00 crore compared to Rs 72,755.00 crores for 2007-08.

The railways would invest Rs 25,000 crore over the next five years in
capacity augmentation, technology urgrade, doubling of tracks and promotion of
services. 55 new trains to be launched, ticket confirmation via mobile, huge
potential for private sector investment in projects such as railway land
development, terminal development, wagon fleets and laying new tracks are some
of the things that would give a further boost to the already booming IT sector.

The railway minister's emphasis on upgradation of information technology at a
huge investment over the next five years is a welcome step, as customers need a
better information system to track their consignments. The move will also help
run freight trains on time. Development of surplus land at major railway
stations through the railway land development authority is another attractive
proposition for the private sector.

Harping on the use of IT, the railways would give a major emphasis on
e-ticketing. Automated vending machines issuing tickets would be increased from
250 to 6,000 while unreserved ticketing system windows would increase to 15,000.

Industry expert Federation of Indian Chambers of Commerce and Industry (FICCI)
has termed the budget as anti-inflationary. Confederation of Indian Industry (CII)
said that the budget will create a win-win situation for all-the railways, the
wagon manufacturers, heavy industries, IT sector and the common man.