In news

Ministry of Railways rolls out a new iron ore policy governing allocation of rakes and transportation of iron ore.

Aim

To attune it to the present day needs of customers and to meet the complete requirement of transportation of iron ore customers and provide total logistics support to steel industry to meet the competitive challenges.

Highlights

• Production of steel is critically dependent on transportation of iron and other raw materials. 
• The policy sets down clear guidelines on how to fully meet the requirement of customers by leveraging infrastructure facilities available at loading and unloading ends to the fullest. 
• The new policy has been named as ‘Iron-ore Policy 2021’ and shall come into effect from 10.02.2021. 
• The provisions of the new policy will be updated in the Rake Allotment System module by CRIS.
• Categorization of Priority of movement of Iron Ore has now been based on the availability of Railway infrastructure developed by the customer for loading/unloading and the nature of movement between various types of sidings with a view to maximize iron-ore movement by rail.

Iron Ore and Indian Railways

• Iron-ore is the second most important stream of traffic of Railways and along with steel accounts for nearly 17% (53.81 Million Tonne of Steel & 153.35 Million Tonne of Iron ore) of total 1210 Million Tonne freight loading of IR in 2019-20.
• The new Iron-ore Policy, 2021 issued by Ministry of Railways is expected to have positive impact on the steel industry, provide powerful impetus to the core sector of the economy and boost country’s economic growth.
  

Source: PIB