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24 JANUARY 2022 AL CIRCLE

Union Budget of India 2022-23:​ PHDCCI request for re-classification of bauxite and freight cost in the railway tariff structure

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

With only a few days till the Union Budget 2022, there has been an outpouring of proposals to Finance Minister Nirmala Sitharaman from all corners, notably regarding Railways, which is regarded as India's "lifeline."

2022-23 Union Budget of India: Union Budget of India 2022-23: PHDCCI request for re-classification of bauxite and freight cost in the railway tariff structure

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The PHD Chamber of Commerce and Industry (PHDCCI) has requested that bauxite be reclassified from Class 160 to Class 145 and alumina be reclassified from Class 180 to Class 170 in the Railways tariff structure for Budget 2022.

The re-grouping of bauxite and lower freight rates would stimulate increased freight quantities and enable the Indian Railways to generate more income.

Aluminium and its raw materials can be moved from category "D" to category "C" of the Railways Preferential Traffic Order to support simplified logistical operations and raw material supply chains.

The PHDCCI has also urged the government to put coal and coke on the list of commodities eligible for discounted freight rates for Short Lead Goods Traffic, which would improve railway income by increasing freight volumes and encouraging short-distance switching from road to rail.

It was suggested that concessional freight rates of 20% have been extended for distances over 1,400-1,600 km for coal and coke, iron/steel and iron ore, 15% concessional rates for coal, coke and aluminium metal and raw materials for distances 1,000-1,400 km; 10% concessional rates for coal, coke and aluminium metal and raw materials for distances between 500 and 1,000 km; and a 5% concessional rate for coal, coke and aluminium metal and raw materials for distances between 100-500 km.

India will represent 40% of worldwide rain activity by 2050, according to the Indian Brand Equity Foundation (IBEF). It goes on to say that between April 2020 and June 2021, FDI inflows into railway-related components totalled $1.23 billion.

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Last year, Sitharaman announced a Rs 1.1 lakh crore grant for the Indian Railways to improve infrastructure. Hyderabad fuel-based trains for clean transportation in India may be announced in the Budget. By 2030, the ministry wants to be carbon neutral. More than 1,000 railway stations, according to the government, get their electricity from solar panels.


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EDITED BY : SARNALI CHAKRABORTY 2MINS READ

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