December 02, 2008

Indian Railway hikes several charge for iron ore exports

It is reported that Indian Railways has hiked freight charges for iron ore for the second time in 2007-08 by about 15% through various surcharges with effect from October 1st 2007.

AS per report, for all iron ore traffic being transported to goods sheds and sidings that serve the ports, Indian Railways has increased congestion surcharge to 35% from 21%, which was imposed on iron ore exporters from April 1st 2007 after the Railway Budget.

Railways has also imposed a busy season surcharge of 7% on iron ore for exports with effect from October 1st 2007 as against 6% busy season surcharge paid during April to September.

A terminal charge of INR 40 per tonne of has been imposed on iron ore till March 31st 2008 in addition to a development charge of 2%.

All these charges are imposed through notices issued after the Railway Budget and for moving one tonne of iron ore over 500 kilometers iron ore exporters would be required to pay about INR 844.25 now compared to the base tariff of INR 554.7 as announced in the budget.