The Hindu Business Line : Steel plants put on wagon

If the report doing the rounds in the steel sector is any indication, then it can be surmised that the integrated steel plants' claim for preferential allotment of wagons for inward transportation of inputs other than coal will no longer be entertained by the Railway Ministry. This follows the modification of rules governing the allotment of wagons by the Central Board of Transportation, which was earlier under the Ministry of Steel but is now under the Railway Ministry.

According to earlier rules, the five plants under the Steel Authority of India Limited, Tata Steel's Jamshedpur plant, and the Visakhapatnam plant of Rashtriya Ispat Nigam Ltd were entitled to the preferential allotment of wagons by the CBT. It is now learnt that the rules have been bent to accommodate smaller players, that is, steel plants having capacity of 0.5 million tonnes and above. As a result, more steel plants will now seek preferential treatment. The integrated steel plants are upset at this. More important, how the Railways cope with the burgeoning demand for wagons remains to be seen.

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