Railways reduce freight rate on iron ore by 5.8%

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Terming it as a price controlling measure and a step to help the steel industry, railways has reduced freight charge on iron ore transportation by 5.8 per cent.

The iron ore has been reclassified from 180 to 170 which means reduction of freight rate by 5.8 per cent, Railway Board Member (Traffic) VN Mathur said.

The revised rate will be applicable from Thursday.

However, he said the revised rate is applicable for domestic use only and not for export purpose. The 180 classification is still applicable to the export sector.

"This has been done as a price controlling measure. It is hoped that steel industry will also reduce the steel price," Mathur said.

Recently Railway Minister Lalu Prasad had sought the ban on the iron ore export and suggested 15 per cent more export duty on iron ore to ensure availability of the mineral for domestic steel producers.

Prasad had maintained that increase in steel prices had a cascading effect on the economy.