New Delhi: State-run steel maker Rashtriya Ispat Nigam on Wednesday said Railways need to take a re-look at the proposed freight rate hike as it will have an adverse impact on the steel industry.
"The increase in freight charges would have adverse impact on steel industry and would need re-look by Railways," RINL Chairman and Managing Director A P Chaudhary said in a statement.
Railway Minister Pawan Kumar Bansal in his maiden Budget yesterday proposed nearly 6 percent hike in freight rates, across the board.
Chaudhary's comment follow SAIL Chairman C S Verma's assessment that his company would have to bear an additional cost of Rs 300 crore annually due to hike in freight rates.
"For SAIL, this is estimated to have a negative implication of Rs 200 crore per annum on inward traffic and around Rs 100 crores per annum on outbound finished goods traffic," Verma had said in his reaction to the Rail Budget.
The hike in freight charges would also impact other steel makers, but it would vary from company to company depending on their plant location and markets.
Chaudhary, however, described the Rail Budget as "pro- industry" and said Rs 60,000 crore investment announced by Railways would greatly improve country's steel consumption.
"Effort of steel industry to reach to rural areas as well as nook and corner of India will get support with the introduction of several new trains, new rail connection of north-east states and Jammu Kashmir area," he said.
First Published: Wednesday, February 27, 2013, 22:12