Railway Minister Lalu Prasad Yadav informed about the development while presenting his Railway Budget in Parliament.

For the third quarter ended December 2006, the cost for inland transportation increased (as percentage of sales net of stock adjustment) by 210 basis points to 19.60%.

As many as 2.72 lakh shares were traded in the counter on the BSE.

The Sesa Goa scrip has been bullish since late-December 2006. From Rs 1186.35 on 20 December 2006, it surged to Rs 1946.55 by 29 January 2007, only to slip to Rs 1883.90 by 23 February 2007.

At the current market price of Rs 1966.80, Sesa Goa trades at 10.15 times its Q3 December 2006 annualized EPS of Rs 193.67.

Recently, Sesa Goa increased the prices of all grades of iron ore for its Japanese customers for FY-2007/08. The decision was taken in the wake of Japanese Steel Mills accepting an increase in the price of Australian iron ore for the year 2007-08.

Sesa Goa had been planning to start negotiations on annual price contracts with major global customers in February 2007. Reports in early-January 2007 had then speculated that Sesa Goa was likely to ask for a 9.5% increase in iron ore prices on annual supply contracts.

It may be recalled that Brazil's CVRD, the world's biggest iron ore producer, had in December 2006, struck an agreement with Chinese steel mills for a 9.5% upward benchmark (iron ore fines) price revision for 2007-08 (April-March). The ore price had increased by 18% in 2004-05 and a record hike of 71% was extracted by exporters from steelmakers for 2005-06.

As per reports in early-February, Anglo American, the world's second largest mining and natural resources company, had submitted its bid with five others for Mitsui’s 51% stake in Sesa Goa. It was also reported that steel giants Arcelor-Mittal and Rio Tinto had bid at over Rs 2,100 per share for Mitsui Corp's 51% stake in Sesa Goa.

Sesa Goa supplies iron ore to China, Japan and Europe, and is also the sole supplier of ore to Pakistan Steel Mill, Pakistan’s only steel manufacturing unit. The company’s annual exports amount to around 5 million tonnes out of Marmagao, Chennai and Paradip ports.

Sesa Goa reported a net profit growth of 23% to Rs 194.94 crore for Q3 December 2006, versus Rs 157.85 crore in Q3 December 2005. Net sales for the quarter rose 15% to Rs 587.89 crore (Rs 510.37 crore).