East Coast Railway (Waltair Division) is gearing up to initiate action against the non-payers towards shortfall of Minimum Guaranteed Traffic payable by Essar Steel.

According to an official press release from Railways, the steel major Essar Steel India Limited is operating iron ore slurry pipeline crossing railway track at km 762/1-2 near Duvvada since 2005.

Essar has been committed to ensuring a traffic of 1.2 million tonnes per annum but were not able to ensure the traffic and kept pending the dues to Railways that amounted to tune of ₹ 372.44 crore.

East Coast Railway advised for early payment of pending dues towards shortfall of assured traffic during the period 2014-2017.

It was further emphasised that Railways would not permit continuance of slurry pipe line on their land in the absence of an appropriate agreement.

In this connection Railway issued one week prior notice of ₹50 crore as first instalment and the remaining amount in a week.

“Now since they have not responded we have served a 48-hour notice to Essar Steel India limited duly emphasizing to the clear the payment of dues against shortfall of the traffic for deposition of ₹ 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,” said ECOR/Waltair Division’s DRM Mukund Saran Mathur.

In case of failure stern action like forceful removal of pipeline will be initiated, he said.