Rlys to waive 10% levy for cement, steel

The railways have decided to waive the 10 per cent surcharge levied on multiple-point unloading of steel and cement.

Currently, companies ferrying commodities like steel and cement, normally unload at several points en route their final destination; each time they unload, the companies have to pay 10 per cent surcharge at to the railway ministry.

Apart from this, the ministry has also decided to extend the 30 per cent discount on incremental loading, offered to the industry, till 2010.

Considering that steel and cement are amongst the major freight customers of Indian Railways, comprising 30 and 35 per cent of total freight traffic respectively, the ministry has taken these step, in order to lure them away from taking their goods by road.

In fact the surcharge issue had been a major grouse with steel and cement industry and therefore the ministry today called a meeting of the industry coordination committee, to resolve these issues.

In fact the railway ministry had asked their freight customers to unload their goods only at their final destination.

However companies were of the view that since they find potential customers for their goods en route to their original destination, they be allowed to unload at multiple points. The ministry agreed but levies surcharge on each of the unloading point from them.

The 30 per cent discount on incremental loading is being given annually since 2005 by the ministry to those players, who have carried extra freight than what they carried the previous year, on their fixed routes. The discount is given to them on the extra freight carried by them. This sop has now been extended till 2010.

Apart from this, the ministry has also offered steel and cement companies to enter into long term contracts with them. Ranging from five to 30 years, railway minister Lalu Yadav said today that as the steel and cement industry is their biggest customer, therefore on entering into long term contracts with them, rakes would be made available to them much faster than what the entire process of hiring takes at present.

Currently companies wanting to hire rakes have to approch the zonal railway authorities for this, a process which takes months on end.

Now the ministry has offered that the companies seeking rakes can approach the Railway Board directly with their requests and rakes would be made available to them within two months, even during busy seasons.

The railway minister also requested the cement and steel customers to take advantage of the ministry's plan for development and modernization of loading terminals and sidings. Under this the ministry is willing to bear 50 per cent of the expenditure.