The Indian railway is planning to increase the freight charges of iron ore. It is a bad news for the steel industry which is facing pressure from the union government to keep the prices in the comfortable zone. The steel industry is also under pressure due to global slowdown. The move of increasing freight charges would decrease the profits of this crucial infrastructure industry.
 
 Railway would revise freight charges from tariff class of 170 to higher class 180. The companies had to pay a basic freight of Rs 583 per tonne for movement of iron ore along K K Line from Chhatisgarh to Vizag as per class 170. The freight charges would increase up to Rs 617 after revision of charges. The steel and infrastructure companies such as Tata Steel, Essar, Jindal and Ispat Industries are likely to affect by this decision of Indian railway.

The steel industry has urged the railway to revise its decision. The steel demand is already decreasing and the cost of raw materials such as met coke and coking coal is increasing. China has also increased the import duty on met coke. Such decision would adversely hit the steel industry in the coming times.