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Tata Steel inks long-term tariff pact with Indian Railways

LTTC has been introduced by Indian Railways to establish long-term contracts with customers

Press Trust of India  |  New Delhi 

In a first, Tata Steel signs long-term tariff contract with railways

on Friday said it has entered into with railways, becoming the first company in the steel sector to sign such pact. "became the first steel company to enter into a (LTTC) with here today," the company said in a statement. has been introduced by 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. The main objectives of includes long-term revenue commitment from customers, preferential treatment to customer for supply of wagons, generation of additional traffic volumes and revenues for railways and on retention of traffic as well as on incremental traffic. The long-term contract also aims at freight escalation protection i.e.

Freight increase mid-year will not be passed on to the customer.

First Published: Fri, July 14 2017. 23:59 IST