Suresh Prabhu delivers freight rate hike googly for capex push
There are limited funds at the railways’ disposal to boost purchases or capital expenditure immediately
The 52% jump in the annual Plan outlay for India Railways brought little cheer for investors. Shares of some firms that depend on Indian Railways closed with losses on Thursday. Many of them—Texmaco Rail and Engineering Ltd and BEML Ltd, for example—had risen sharply in the past six months and valuations are not cheap. The fact that the rail budget for 2015-16 has little to offer to these companies in the short term also didn’t help.