Hike in railway freight charges will impact sponge manufacturer's margins

Recent hike in freight charges by Indian railway will dent margins of steel manufacturers in India.

Indian railways have announced an effective hike of 6% on freight charges for all commodities (Incld Iron Ore and Coal). This move will increase transport cost of Iron ore by Rs 50-100/tonne (depending on distance) and transport cost on coal by Rs 50-150/tonne (depending on coal).