The State Government has notified the revised freight rate for transportation of minerals in five districts for the second time since August 2015.

The revision has been notified by the State Government as per direction of the Orissa High Court which had earlier this year ruled to finalise the freight rate in consultation with the truck owners' associations.

According to the notification, for distance above 50 km, the maximum freight rate per km has been increased from `6.40 to `6.60, from `5.10 to `5.20 and  from `4.10 to `4.20 for six weelers, ten wheelers and twelve wheelers, respectively.

For one way distance up to 50 km, the transport rate is `38 per km and `1,235 per day in case of six wheelers. In case of ten wheelers the rate, as announced is, `53.50 per km and `1,355 per day and for twelve wheelers, it is revised to `57.90 per km along with `1,620 per day.

The notification has compensated the return idle journey by allowing 40 per cent extra.

Prior to the notification, there was no per day charges; rather it had per trip charges which have been duly considered in the revised notification.

Taking note of the arbitrary and exorbitant rates charged by the mineral transporters, the Government had issued a notification in August, 2015 putting a ceiling on freight rate for mineral transport in Angul, Jajpur, Keonjhar, Sundargarh and Jagatsinghpur districts. However, truck owners of Keonjhar protested the freight rate and paralyzed the transportation which badly hit the mineral transport in the district.

The mini truck owners' association had challenged the State Government's decision in the Orissa High Court, which directed the State Government to direct the Transport Commissioner to resolve the issue by holding discussion with the truck owners and Collectors of the five districts.

Though not very happy with the revised freight rates, the value addition industries in the State have raised doubt over implementation of the revised notification.

 “Cost of mineral transportation in Odisha is exorbitantly high and not based on market rates. Though a notification regarding uniform freight rate based on consultation and consideration of prevailing market rates in neighboring State is in force for more than one year, the transporters still charge arbitrarily. All major routes are monopolies, governed by prominent figures like MlAs etc who do not agree to any governance whether court or Government. Violence, bandhs etc are the tools deployed for massive organized extortion from industries. At the ground level, the administrative will to implement the uniform freight rate has been palpably missing,” said a senior functionary of a major steel maker.

The exorbitant rate charges by the transporters have further increased the raw material cost for industries, especially in iron and steel sector. The increased cost of raw material in turn has affected the viability of these industries, which is struggling for survival due to shrinking demand and cheap import of finished products.  Further increase in cost of raw materials will severely hit the value addition industries and is likely to result in loss of thousands of direct and indirect livelihood in the State, apprehended industry experts.