Date of Post: 30 Aug, 2017
Steel Authority of India Limited (SAIL) entered into a long term tariff contract with the Railways involving for Loading & Unloading Terminals.
THESE ARE THE COMMODITIES APPLICABLE TO THE CONTRACT
- Different commodities applicable to the contract are:
- Iron & Steel
- Pig Iron
- Manganese Ore
With a benchmark gross freight revenue (BGFR) of Rs 3,417.74 crore and with corresponding tonnage of 19.3 million tonnes (MT) effective from September.
- Currently, this is the highest Long Term Tariff Contract (LTTC) agreement in terms of Gross Freight Revenue of Railways.
- “Steel Authority of India Ltd and Indian Railways have entered into a strategic agreement on Long Term Tariff Contract (LTTC) on August 29, 2017,” SAIL said in a statement.
- Long Term Tariff Contract has been introduced by Indian Railways to establish long-term contracts with customers with guaranteed incremental revenue for Indian Railways, the statement said.
- The contract can be for a period of three to five years.