Tata Steel has entered into a Long Term Tariff contract (LTTC) with Indian Railways.
Suresh Prabhakar Prabhu, Hon’ble Minister for Railways, senior officials of the Railway Board, and Sudhansu Pathak, Vice President, Steel Manufacturing, Tata Steel, among others, were present at the LTTC signing ceremony that was held at the Rail Bhawan here.
LTTC has been introduced by Indian Railways to establish long-term contracts with customers with guaranteed incremental revenue for Indian Railways.
The contract can be for a duration of 3-5 years. The main objectives of LTTC are:
Long-term revenue commitment from customers
Preferential treatment to customer for supply of wagons
Generation of additional traffic volumes and revenues for Railways
Freight escalation protection i.e freight increase mid-year will not be passed on to the customer
Freight concession on retention of traffic as well as on incremental traffic
Tata Steel has invested heavily in improving its rail infrastructure and material handling system. This has helped in reducing detention of railway rakes and bringing down the wagon turnaround time.
Tata Steel has become first company to enter to into such a long term contract with Indian Railways.