Cement manufacturers urge Railway Ministry to withdraw 6.5% rail freight hike
The Railway Ministry has received a request from the Cement Manufacturers Association to rollback the 6.5 percent increase in rail freight charges to curtail infrastructure development costs.
Seeking the withdrawal of the railway freight increase, the cement manufacturers put forth the argument that the hike in freight will further discourage the movement of cement, clinker and input materials by rail. The association asserted that the cement industry is reeling under a lot of price pressure, due to sluggish demand and high input costs.
Drawing attention to the fact that the rail co-efficient for cement has plunged to 34 percent at present, from 50 percent a few years back, the Cement Manufacturers Association said that the there has been a 40 percent increase in the overall transportation cost of cement in the past two-and-a-half-years.
The association also asserted that, with the 6.5 percent increase in the rail freight rates, the cement industry will – on an average – have to bear an additional burden of approximately Rs 100 per tonne.
Meanwhile, along with urging the Railway Ministry to withdraw the rail freight hike, the cement manufacturers have also requested the Ministry to computerize cement terminals, so as to bring about an improvement in efficiency and to give a boost to private investments.
Source – The Hindu Business Line
Cement Manufacturers Association to rollback the 6.5 percent, Railway ministry, Railway Ministry to withdraw 6.5% rail freight hike
