In last five years, the price of Steel has increased many times. Perhaps the role played by IR in increasing price of steel is significant.
Even though the axle load of wagons carrying Iron ore was increased to 25 tonnes, this was accompanied with an increase in freight rate for Iron ore. This strategy has increased the surplus fund available with IR but has also increased the cost of finished steel, thus contributing to inflation.
World over, increased axle load of freight stock goes together with a decrease in per unit carrying cost of payload.
The increased price of steel is also affecting Indian Railways projects.
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Even though the axle load of wagons carrying Iron ore was increased to 25 tonnes, this was accompanied with an increase in freight rate for Iron ore. This strategy has increased the surplus fund available with IR but has also increased the cost of finished steel, thus contributing to inflation.
World over, increased axle load of freight stock goes together with a decrease in per unit carrying cost of payload.
The increased price of steel is also affecting Indian Railways projects.
Members may comment
