Industries cry foul over skyrocketing freight charges – The New Indian Express

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By Express press service

ROURKELA: A sharp increase in loading fees by the Odisha Mining Corporation (OMC) Kurmittar iron ore mine at Koida Mining Circle has added to the woes of the private metallurgical industries in Sundargarh district which are already struggling due to the high input costs.

The increase in loading fees from Rs 35 to Rs 159 per ton, called “tipper loading and service advisory fees”, is applicable from 1 October. Former Odisha Sponge Iron Manufacturers’ Association (OSIMA) President Yogesh Dalmia said that due to global factors coal prices almost quadrupled to about Rs 10,000 per ton, the price of imported coal has also doubled to around 16,000 rupees. The burden of rising prices is borne by small industries that have access to limited resources.

Dalmia said that due to the flawed WTO policy, iron ore costs between Rs 7,500 and Rs 8,000 per ton in Sundargarh and the rest of Odisha, while better quality iron ore is available for around Rs 6,000 in neighboring Chhattisgarh. Rising loading fees will hit struggling local industries hard. “While Mahanadi Coalfields Limited (MCL) charges loading fees of Rs 10 per ton, several private iron ore mines in Koida Mining Circle do not charge a penny for the same,” he said.

OSIMA Chairman Manoj Agarwal has said that at a time when metal industries are being hit hard by high input costs, the arbitrary hike in loading charges from Rs 35 to Rs 159 is both illogical and unjustified. An industrialist who requested anonymity claimed the so-called ‘tipper service loading and advisory fees’ were a monopoly practice of the Khandadhar Loading Agency Pvt Ltd (KLAPL) in connection with trade unions and contractors transport.

According to the WTO contract with the purchasing industries, the labor cost for loading is included, but practically the industries are obligated to pay for the same. “WTO authorities are asking industries to use their own tippers, but unions and transporters at Kurmittar mine would not allow vehicles from outside. Because of this monopoly, transport costs at Kurmittar mines are high compared to other mines that do not have unions, he said.

Adani Enterprise Ltd works as the Mine Developer and Operator (MDO) for OMC Ltd’s Kurmitar Iron Ore Mine. KLAPL provides support and ancillary transport to the mine which has sent letters to the affected carriers requesting to charge Rs 159 per ton as a loading charge.

ROURKELA: A sharp increase in loading fees by the Odisha Mining Corporation (OMC) Kurmittar iron ore mine at Koida Mining Circle has added to the woes of the private metallurgical industries in Sundargarh district which are already struggling due to the high input costs. The increase in loading fees from Rs 35 to Rs 159 per ton, called “tipper loading and service advisory fees”, is applicable from 1 October. Former Odisha Sponge Iron Manufacturers’ Association (OSIMA) President Yogesh Dalmia said that due to global factors coal prices almost quadrupled to about Rs 10,000 per ton, the price of imported coal has also doubled to around 16,000 rupees. The burden of rising prices is borne by small industries that have access to limited resources. Dalmia said that due to the flawed WTO policy, iron ore costs between Rs 7,500 and Rs 8,000 per ton in Sundargarh and the rest of Odisha, while better quality iron ore is available for around Rs 6,000 in neighboring Chhattisgarh. Rising loading fees will hit struggling local industries hard. “While Mahanadi Coalfields Limited (MCL) charges loading fees of Rs 10 per ton, several private iron ore mines in Koida Mining Circle do not charge a penny for the same,” he said. OSIMA Chairman Manoj Agarwal has said that at a time when metal industries are being hit hard by high input costs, the arbitrary hike in loading charges from Rs 35 to Rs 159 is both illogical and unjustified. An industrialist who requested anonymity claimed the so-called ‘tipper service loading and advisory fees’ were a monopoly practice of the Khandadhar Loading Agency Pvt Ltd (KLAPL) in connection with trade unions and contractors transport. According to the WTO contract with the purchasing industries, the labor cost for loading is included, but practically the industries are obligated to pay for the same. “The WTO authorities are asking industries to use their own dumpsters, but unions and transporters at Kurmittar mine do not allow vehicles from outside. Because of this monopoly, transport costs at Kurmittar mines are high compared to other mines that do not have unions, he said. Adani Enterprise Ltd works as the Mine Developer and Operator (MDO) for OMC Ltd’s Kurmitar Iron Ore Mine. KLAPL provides support and ancillary transport to the mine which has sent letters to the affected carriers requesting to charge Rs 159 per ton as a loading charge.

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