SAIL signs long-term tariff pact with Railways

Country's largest steel maker SAIL on Tuesday said it has entered into a long-term tariff contract with railways involving 15 zones for loading and unloading terminals.

Different commodities applicable to the contract include iron and steel, pig iron, slag, limestone, dolomite and manganese ore with a benchmark gross freight revenue (BGFR) of Rs 3,417.74 crore and with corresponding tonnage of 19.3 million tonnes (MT) effective from September.

At present this is the highest LTTC agreement in terms of Gross Freight Revenue of Railways.

"Steel Authority of India Ltd and Indian Railways have entered into a strategic agreement on Long Term Tariff Contract (LTTC) on August 29, 2017," SAIL said in a statement.

LTTC has been introduced by Indian Railways to establish long-term contracts with customers with guaranteed incremental revenue for Indian Railways, the statement said, adding that the contract can be for a duration of three to five years.