Highlighting the mismanagement and corruption in the implementation of the railway policy on iron ore transportation, Essar Steel has offered to pay Railways a sum of Rs 89 crore, including penalty, for transporting iron ore/pellets meant for exports, by paying cheap domestic tariff. Further, Essar Steel is planning of making the payment railways to the 18 equal installments.
Company’s move points towards a possibility, that several pellet makers may have used the cheap domestic freight rates to move iron ore to their plants, make pellets and then export them, violating the undertaking given by them to the government.
