Visakhapatnam: Acting tough on non-payment of dues against the shortfall of traffic, Railways on Thursday gave an ultimatum of 48 hours to deposit and clear the remaining dues on or before December 23. Railways has warned that it would not permit the continuance of slurry pipeline on their land in absence of an appropriate agreement. M/S ESSAR steel India Limited is operating an Iron Ore slurry pipeline crossing a railway track at KM.762/1-2 near Duvvada since 2005. ESSAR was committed to give traffic of 1.2MT (annually) but could not keep up the offer and kept a huge sum pending. The total amounted to Rs 372.44 crore.

As per the minimum traffic clause, the party has to pay the load amount for whatever amout was agreed in the deal irrespective of what ferried. Divisional Railway Manager (Waltair division) M.S. Mathur told this newspaper that the agreement with Essar Steel was till 2012. They had to renew the contract and clear their dues. But, even after serving several notices, the firm did not respond. This is an illegal operation being carried out by them and we have every right to remove their infrastructure and stop our services.”





“Railways may not insist on the minimum traffic clauses from 2016. However, the agreement with the Essar was till 2012. Railways invested huge investment to offer the service. So, Railways would not permit the continuance of slurry pipeline on their land in absence of an appropriate agreement,” he said. Railways geared-up to initiate action against the non-payers towards shortfall of Minimum Guaranteed Traffic payable by ESSAR for the period 2014-2017. Railways advised for early payment of pending dues towards shortfall of assured traffic during the period 2014-2017 (3Years).

In this connection, Railway issued one week prior notice to Rs 50 crore as first installment and the remaining amount in a week and now 48 hours notice to ESSAR steel India limited duly emphasising to the clear the payment of dues against shortfall of the traffic, for deposition of Rs 50 crore towards part payment of outstanding dues along with action plan for deposition of balance sum within a week time from date of this notice.