PTI

New Delhi: Terming it as a price controlling measure and a step to help the steel industry, railways has reduced freight charge on iron ore transportation by 5.8%.

The iron ore has been reclassified from 180 to 170 which means reduction of freight rate by 5.8%, Railway Board Member (Traffic) VN Mathur told PTI.

The revised rate will be applicable from 1 May.

However, he said the revised rate is applicable for domestic use only and not for export purpose. The 180 classification is still applicable to the export sector.

“This has been done as a price controlling measure. It is hoped that steel industry will also reduce the steel price,” Mathur said.

Recently, Railway Minister Lalu Prasad had sought the ban on the iron ore export and suggested 15% more export duty on iron ore to ensure availability of the mineral for domestic steel producers.

Prasad had maintained that increase in steel prices had a cascading effect on the economy.

Railways transported 53.59 million tonnes of iron ore for export in the fiscal 2007-08.