Kolkata (PTI): Railway Minister Mamata Banerjee on Saturday defended the emphasis on private sector participation in developing railway infrastructure but said there was no threat to railway jobs.

"You cannot always spend money from government funds. You have to encourage private industries also. I don't want to disturb railway employees. Their employment is absolutely safe," Ms. Banerjee, who presented the Railway budget in the Lok Sabha yesterday, told reporters here.

Her remarks came in the backdrop of CPI(M) Politburo member Biman Bose saying here on Friday that the direction of the budget was on privatisation.

"When I was Railway Minister earlier in 1999, 2000 and 2001, it was my idea for productive use of railway land. I don't know why this was not followed. Why was there poor development on this count" she said.

While presenting the railway budget, Ms. Banerjee had spoken of a new policy to be unveiled for developing private freight terminals and logistic parks under public-private partnership.