Indian state-owned railway company Indian Railways has launched a scheme to offer discounts on iron ore, pig iron and finished steel freight based on long-term contracts to miners and producers, a senior government official said on Thursday, March 16.
The official said that a “graded system of discounts” would be offered on freight charges to iron ore miners and steel mills based on volumes and transportation distances for which freight trains are booked by the miners and steel mills.
Citing historical data, the government official said that Indian Railways transported about 80 percent of finished steel in the country, and the discount scheme would be offered if steel mills made advance bookings.
In the current year, by offering incentives, the Indian Railways has targeted the transportation of 72 million mt of finished steel and pig iron and 143 million mt of iron ore.