Indian Railways (IR) has decided to continue with the discount offered on long distance coal transportation for another six months.
A concession of 20% had been given on rail freight for transporting coal and coke to distances beyond 1,400 km, in consideration of the pandemic backdrop.
Initially, the provision was offered for one year from 30 Jun ’20 to 30 Jun ’21. However, this sop has been increased for another six months till 31 Dec ’21.
Nevertheless, IR informed that the prevailing discount on transportation of iron ore and steel would be valid for another year till 30 Jun ’22.
Concession on Freight Rate
It is important to note that domestic coal prices are comparatively lower that of imported coal, but statutory levies and freight costs make the landed price of domestic coal less competitive especially in the western and southern parts of the country.
The concession will allow customers to avail of the coal at a discounted rate.
Freight loading momentum good
Despite the Covid challenges, IR has continued to maintain high momentum in terms of freight loading in May ’21.
Notably, freight movement of 114.8 million tonnes (mn t) in May ’21 was the highest-ever loading recorded in the month, which was 9.7% more than the previous high of 104.6 mn t recorded in May ’19.
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