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Railways abolishes dual freight rate for iron ore transport

Currently, transportation of iron ore meant for exports attracts a freight rate which is Rs 300 per tonne

Freight factor

Indian Railways has abolished the dual freight rate policy for transportation of iron ore to boost freight traffic volumes. This is also in response to a long-standing demand from industry for uniform rates. Currently, transportation of iron ore meant for exports attracts a freight rate that is Rs 300 per tonne higher than the rate for domestic use in steel and cement industries. The dual freight rate policy had fuelled diversion of the ore meant for domestic use to exports. “The dual freight policy applicable for transportation of iron ore and iron ore pellets is ...