Railways discount scheme
Media in India refers to the term India Inc to address the government and the corporate sectors here. As per the statistical data of 2000, people employed by it all are good 7% of the work force. This workforce contributes to good 60% of the GDP in India. The unorganized sector comprises of 44 million enterprises, which are not related to agriculture or agriculture.
Railways and India Inc
India Inc is indeed focusing on the national transporter- Railways. Now, it is intended by the team to grant long term tariff contracts. The sectors considered for the same are cement, fertilizer and steel. These sectors are being considered because they will benefit railways through freights.
Names such as Ultratech and ACC are already in conversation with the team at the other side for the contracts. It has been seen that there has been a decline in the same in the recent times. This got triggered at the time of recession and needs attention for national growth.
This collaboration or grant of contract shall increase the freight traffic by six percent. The majority of the traffic has been shifted to road in the times now. This needs focus for the economic betterment.
Some key highlights of the all the process are mentioned below:-
- The segment to get maximum rise in the financial year-2018, is expected to be container services-9.9%, finished steel and pig iron – 7.52%, iron ore-6.6% and coal 6.7%.
- Currently 65% of cement traffic is on the road. Railways have only 30% of it and 5% is transported through water. Now, railways shall get the maximum of it back on its track.
- Efforts were taken and were practically implemented too, but demonetization has been a slight barrier for the same.
The IFFCO chairman, Rakesh Kapur had real effective inputs to give. He clearly stated about not making any fresh commitments as fertilizers are sensitive and needs to be transported carefully. Though the plants of fertilizers operate 24/7, yet, there are issues in keeping them timely available. As if now, 80% of the movement of fertilizer is through railways.
Approximately 80% of the steel is produced in India. The transportation of Iron ore and steel is totally dependent on the quantity and the distance it needs to be carried for, each company has a different decision to make for the same. For instance SAIL, has been having a good liaison with railways for a real long time.
As of now the minimum period for the grant of contract is three years. There shall be provision of insulation to protect the companies and railways both, from sudden price increases. Steel, cement, grains, fertilizers, scrap, pig iron and scrap are the main focus as of now. Talks are already planned for the betterment for both the parties.
Railways have had a loss of good 7000 crores in the year 2016-2017. This loss happened due to decline in the coal traffic. Railways are all focused to achieve its target of 1094 meters in the FY 2017.