Railways reduces freight rates to boost exports
The Indian Railways has slashed the cost of transporting iron ore for exports for the first time since March 2012 by levying a flat distance-based charge across all slabs in response to ‘significant changes in the market’.
In a circular issued by the Railway Board, the new distancebased charge has been set at a uniform 300 for all slabs and is effective from September 8 for iron ore exported for the production of iron and steel and cement. The move is part of the Railways' dynamic pricing policy, which reviews charges in step with market rates.
There has been a significant change in the market of export of iron ore and hence the issue of DBC has been reviewed. Accordingly, the central government has accorded sanction for revising distance-based charge leviable on booking of the iron ore traffic for other than domestic consumption over all distance slabs.