India-based Penna Cement Industries signed a long-term tariff contract (LTTC) with South Central Railway (SCR) to transport freight at a fixed rate. The five-year scheme will provide long-term stability and certainty in freight tariff rates to Penna Cement.

According to the terms of the LTTC, freight rates will remain fixed for one year and if the customer exceeds the previous year’s freight contribution, it will unlock discounts. "It is a growth-linked incentive wherein, higher the freight contribution over the preceding year, higher the discount eligible for customers," explained N Madhusudhana Rao, principal chief operating manager, SCR.