Indian government today (09 May’16) removed the dual freight policy levied on export of iron ore and pellets. Now freight tariff on export of iron ore & pellets will be charged as per domestic load. Thus, all type of iron ore and pellets whether meant for domestic consumption or manufacture of iron and steel meant for other than domestic consumption will now be charged at Class 165.
The new freight rates will come into force w.e.f 10 May’16 and will remain operational till 31 Mar’17.
|
Distance ( in Kms) |
DBC w.e.f 06 Mar’12 | DBC w.e.f 08 Sept’ 2015 to 31 Mar’16 |
DBC w.e.f |
| 0-200 | 125% of Base Freight Rate plus INR 1,125 | 300 | NIl |
| 201-300 | 90% of Base Freight Rate plus INR 1,125 | 300 | |
| 301-400 | 75% of Base Freight Rate plus INR 1,125 | 300 | |
| 401-500 | 45% of Base Freight Rate plus INR 1,125 | 300 | |
| 501-600 | 25% of Base Freight Rate plus INR 1,125 | 300 | |
| 601-700 | 10% of Base Freight Rate plus INR 1,125 | 300 | |
| >700 | INR 1,125 only | 300 |
Link to the notification issued by the Indian govt.
Prior to this, central govt. on 01 Sept’15 revised the Distance Based Charges (DBC) on iron ore export from India which were made effective from 08 Sept’15. The freight rate circular had fixed a DBC of INR 300/MT over all distance slabs ranging from 0 to more than 700 kms which was comparatively much higher before.
Thus, for exporter who plans to export iron ore from Odisha via Paradip port would have new freight of INR 600/MT which was earlier around INR 900/MT. Similarly, for exports through Vizag Port which earlier had freight of INR 1,250/MT now will remain around INR 950/MT.
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