NEW DELHI - Terming the railway budget for 2009-10 as “progressive and forward looking”, a “pleased” India Inc Friday welcomed Railways Minister Mamata Banerjee’s proposals to undertake developmental and capacity expansion projects without touching the fares.

“The railway budget 2009-10 is clearly a progressive and a forward looking budget,” the Federation of Indian Chambers of Commerce and Industry (FICCI) said in a statement released hours after the minister presented the budget in the Lok Sabha.

“The minister has mooted a number of projects that will carry railways to the next technology level,” said FICCI president Harsh Pati Singhania. “The industry is pleased that the minister has not increased freight tariff.”

The Confederation of Indian Industry (CII), another leading industry lobby, said the budget is “unique” and has set overall development as its main agenda.

“This budget is unique in the way inclusivity and overall development has been the focus without losing focus on safety, technology adoption and commercialisation while providing opportunities for industry through its capacity and infrastructure expansion plans,” said Chandrajit Banerjee, director general of CII.

“The move not to increase fares and yet undertake developmental and capacity expansion plans with revenue coming from commercial use of railway property is an innovative approach.”

However, the PHD Chamber of Commerce and Industry (PHDCCI) said Mamata Banerjee should have reduced freight rates across the board to stimulate the slowdown-hit economy.

“Freight rates are very high in India and need urgent rationalisation through phased reduction in cross-subsidisation of passenger fares by freight rates,” PHDCCI president Satish Bagrodia said.

The chamber, however, welcomed the minister’s decision to start special trains for perishable agro products and rural handicrafts, and upgrade 50 stations to world class.

The railway’s plans to use facilitate commercial use of its land, link industrial clusters of handicrafts and textiles with markets, create cold storage facilities for agro products and develop multi-functional complexes in some stations were also hailed.

The Federation of Indian Exporters Organistaion (FIEO) said the budget was “inclusive”.

A. Sakthivel, president of FIEO, appreciated the move to put dedicated freight corridors projects on fast-track. “The introduction of super-fast parcel services will facilitate and expedite movement of goods.”