In a statement, she said the Railways had proposed to take up new projects for the state during the financial year beginning April, 1999. The Villupuram-Thanjavur gauge conversion, separate railway zone for Salem, the Dindigul, Bodi, Sabarimalai rail project, for which a survey was ordered last year, and electrification of the broad gauge Villupuram-Madurai railway line have not found place in the budget though ``assurances were given to me about them during the last financial year,'' Jayalalitha said. ``This is unfortunate and does cause me much disappointment, taking into account the overall interests of Tamil Nadu,'' she added. Though she welcomed the move not to increase second class mail, Express and ordinary fares, she, however, said the sleeper class fares rationalised by linking it to second class mail/Express fares will only causefurther hardship to the middle class, already burdened by the price hike of essentials.

However, Union Petroleum Minister and Tamizhaga Rajiv Congress (TMC) leader Vazhapadi K Ramamurthy has welcomed the Railway budget, stating that it had made provisions for several projects for Tamil Nadu like never before.Notable among them was the Salem-Vriddhachalam-Cuddalore gauge conversion project, for which he had requested Prime Minister Vajpayee and Railway Minister Nitish Kumar, Ramamurthy said in a statement.

On the annual Plan outlay for Tamil Nadu, which has been fixed at Rs 5,250 crore, he said the increase this year by Rs 750 crore showed that the BJP-led Government has given the state due consideration.

However, the CPM and the Tamil Nadu of the RJD have criticised the hike in freight rates and passenger fares in the rail budget. In a joint statement, they said it will hit the common man hard.