Railways upset with NMDC, may transfer rake to others

The Railways have warned state-run NMDC Ltd to maintain its promised loading of rakes of iron ore else the capacity would be transferred to other customers, a move that may hamper supply of the raw material to steel producers who procure it from the PSU.

“The low level of loading by NMDC is not only affecting its customers, but also adversely affecting the loading and revenue of the Indian Railways,” Railway Board Member (Traffic) VN Mathur said in a letter to Steel Secretary P K Rastogi.

Against its commitment of loading 13 rakes from August 1 to September 15 and 16 rakes daily after that, NMDC loaded just 276 rakes in August, giving an average of 8.9 rakes per day, and 155 rakes till the fortnight of September with a daily average of 11, from Bacheli and Kirandul areas in Chhattisgarh.

Similarly, the Navratna PSU’s daily loading fell to an average 4.3 rakes in August and 3.2 rakes till September 15, against the promised 6.5 rakes from Ranjitpura area in Karnataka.

The mining major also took more time in loading of the rakes, according to the Railways. Citing reasons for the decline in loading activities, a senior NMDC official said it was due to heavy rains.

“Our mining areas were flooded and production was hit. Despite having stockpiles of iron ore, we could not load it water mixing with the raw material,” he said.

Asking the Ministry to persuade NMDC to immediately step up its loading activities, Mathur said it may otherwise be difficult for the Railways to increase the number of rakes for the PSU after October this year.

Mathur said the Railways have a committed rolling stock for iron ore loading circuits of NMDC and to avoid wastage, it would have no choice but to gradually reduce the number of rakes for the PSU, a move that may affect ferrying of the raw material for consumers like Essar, RINL and Ispat.

“Once the stock gets committed to other loading, it will be difficult to restore these rakes for NMDC,” Mathur said. The Ministry of Steel and Indian Railways have been anxious to increase loading of iron ore from the Bailadila iron ore mines of NMDC in Chhattisgarh.

However, owing to law and order problem during the last couple of months, loading was severely hampered. The Railways have inducted additional rakes and locomotives on the Kottavalsala-Kirandul line to increase loading activities. But despite NMDC Chairman Rana Som agreeing for a minimum loading of 13 rakes from Chhattisgarh, the number has actually declined.

“Since the Railways have inducted adequate rolling stock and are geared up for the additional loading, it is necessary that NMDC also ensures that adequate indents are placed and loading of each rake is completed within 3-4 hours so that the volume of traffic increases,” Mathur had said in his previous letter to Rastogi in August.