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Monday, Mar 06, 2006


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Logistics - Railways
Industry & Economy - Steel


Near yet so far

Believe it or not, steel plants located within less than 100 km of the iron ore belt do not get enough of the mineral due to the non-availability of sufficient number of rakes. Not that this has happened to every other steel plant but to only a couple of public sector units.

Interestingly, the problem relates not merely to movement of raw materials. The transportation of finished products out of the plants too presents a disturbing scenario.

There is a mismatch between what is needed and what is supplied with the result that steel plants, again mostly in the public sector, would either not get the type of wagons they need or get over-crowded with the types they would not need. Blame the Railways? Not really. What can the Railways do when huge pressure is mounted on it for providing rakes for all and sundry in the busy season? But, then, the top brass of the steel sector had to intervene to make things easier for the plants.

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