The Hindu Business Line : Rlys panel to examine impact of steel price hike

WORRIED about the ``abnormal increase'' in prices of steel products, the Ministry of Railways has constituted a three-member committee to suggest ways and means to tide over the situation.

The committee of executive director level officials, will study the recent hike in the prices of various steel products used in the Railways and recommend measures to fix the quantum of compensation to suppliers and contractors of steel products. The committee has been given two months to finalise its recommendations.

A Railways Ministry spokesperson said on Wednesday that the committee would recommend a policy directive and a mechanism to be adopted by the Zonal Railways, production units and construction organisations for compensating contractors for the price hike in steel products.

The committee comprises Executive Directors for stores, track maintenance and finance at the Railway Board.

According to the spokesman the committee has also been mandated to recommend a suitable mechanism to be incorporated in future contracts for supply and works to take care of abnormal price variations.

``The recommendations will include the eventuality when prices of steel products used in supply and work contracts go down. It will also take care of fixed contract rates,'' he said.