August 29, 2008

Steelmakers seek reclassification in iron ore tariffs

BL reported that India’s domestic steel industry has found the Railway Budget 2008-09 balanced and forward looking and complimented the union railway minister for leaving iron ore and coal freight charges untouched.

Mr Y Siva Sagar Rao joint MD & CEO of JSW Steel Limited said that “However, a reclassification in rail tariff is required for the supply of iron ore to domestic steel industries as it becomes a value added product for the development of the nation.” He added that a couple of companies are handling full rakes for serving customers and to increase rail co efficient, steel industries must be given some special incentives on steel transportation.

Mr J Mehra CEO of Essar Steel Holdings said that “Developing exclusive freight corridors for iron ore and coal will meet growing needs of emerging sectors like steel and power. In time availability of rakes must be ensured and monitored as all the steel plants are expanding and railways’ share in both finished goods and raw materials will be increasing, a special attention to rake availability must be given.” He added that the steel industry has been expecting some relief from numerous additional levies like congestion surcharge imposed during past two years on iron ore movement.