October 07, 2008

Subsidy sought for ICD traffic in NE

It is reported that although Railway Budget for 2008-09 has proposed 6% freight subsidy for inward traffic by rail into the North East and a similar subsidy is already in force for outward traffic. Unfortunately, but both inward and outward, handled by Guwahati Inland Container depot, operated by the Container Corporation of India, remains outside the purview of the subsidy schemes.

As per report, Federation of Industries & Commerce North East Region therefore has taken up with the appropriate authorities the need for extending the subsidy, as applicable to North Eastern region’s both inward and outward rail traffic, to cover the traffic handled by Amingaon ICD.

Right now, the empties from Kolkata are repositioned at the ICD at a cost, as there is hardly any import from Kolkata Dock system to the ICD and, as a result, the exporters are required to pay through their noses.

The extension of the subsidy will take care of at least part of the cost and the exports from the region will get a big boost.