The Cement Manufacturers Association has urged the Railway Ministry to withdraw the 6.5 per cent hike in rail freight to rein in infrastructure development costs.
The cement manufacturers have also urged the Ministry to mechanise cement terminals to improve efficiency and encourage private investments.
They said the industry is reeling under tremendous price pressure because of sluggish demand and high input costs.
All important terminals handling cement in the country may be mechanised with world-class facilities for improving better turnaround of wagons. Private investments in Railways’ schemes may be encouraged by providing freight rebate of at least 22 per cent and that too for the entire 40-year lifespan of the wagons, they said in a representation to the Railways.
Rakes requirement of the industry should be met in full throughout the year, particularly during peak construction period.
The freight hike will further discourage movement of cement, clinker and input materials by rail. The rail co-efficient for cement has plummeted to 34 per cent now from 50 per cent a couple of years back, the representation said.
In the last two-and-a-half-years, the overall transportation cost of cement has gone up by 40 per cent. With the current 6.5 per cent increase in the freight rates, the additional average burden on cement industry will be about ₹ 100 a tonne or ₹5 per bag of 50 kg, the association said.