 "Steel makers call for ground level implementation of new transport rates")
These companies, however, have stressed on the need to implement the new rates at the ground level so that user industries can reap the benefits. Though the state government has come out with a fresh notification on the revised rates last week, they are yet to be reflected at the ground level.
"We are thankful to the state government for solving such a long standing issue in the greater interest of industrialization in the state. Simultaneously, we appeal all the stakeholders to join hands and implement the new rate at the ground immediately without further delay. Currently, the transporters at Joda and Keonjhar are not accepting the new rates and showing stiff resistance through strikes and blockades. The mafia sponsored resistance is taking a toll on the minerals and product transportation . We would request the district administration to execute the new rate and systems with an iron hand and defaulting transporters or industries should be heavily penalized or suitable actions initiated", said Manish Kharbanda, executive director and group head (mines & minerals), Jindal Steel & Power Ltd (JSPL).
The state commerce & transport department, via a notification dated November 17, has announced the revised freight rates for mineral carrying goods carriages plying within and outside the districts of Angul, Jajpur, Keonjhar, Sundargarh and Jagatsinghpur.
As per the notification, the maximum freight rate has been pegged at Rs 6.40 per tonne/per km for six wheelers, Rs 5.10 for 10-wheelers and Rs 2.90 for 12-wheelers. The notified rate includes compensation for idle return journey.
"Introduction of reverse bidding of transportation rate will induct competitiveness and fair play in transportation of raw materials, help the end use plants to fight the prevailing adversities and ultimately benefit the people and the state in pursuing Industry led development . The announced new rate is now comparable to the similar rate prevailing in the neighboring states", said a senior official at a steel firm.
Steep transportation rates in Odisha had strained operations of steel companies, forcing them to downsize capacities of their units.