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Budget expectations are more muted this time
February, 23rd 2010

What about the Union budget? Do you think the markets are expecting a little too much?

This time actually to the contrary I think overall people in the past have been much more bullish on the Budget in terms of expectations. Expectations from the budget this time actually are slightly more muted. I think the markets are watching for the macro more than the micro this time around.

What are your expectations from the Railway Budget? 

I think what you have seen in the past couple of years is that in the case of Railway Budget there is some kind of slowdown in terms of DFC in case of the land acquisition. We hope there is a push given to the freight corridor thats very important. Both the freight corridors - the North East and the north west are very-very important in terms of the infrastructure spending thats kind of taken a backseat of late.

Also, the so called operating ratio would basically is how profitable the railways themselves are. I mean the railways actually came out with the 10-year perspective plan two or three days ago and thats quite aggressive. Basically stating what they should achieve or what they are going to achieve.

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