New Delhi: The Union Minister for Railways, Information & Broadcasting, and Electronics & Information Technology, Ashwini Vaishnaw, on Tuesday announced a major rationalisation of bulk cement freight charges and a new logistics policy aimed at reducing the cost of cement for consumers across India. The announcement was made at Rail Bhawan in New Delhi as part of broader railway reforms in cement transportation.
Calling the move a “game changer,” the Minister said the revised freight policy would directly benefit middle-class and economically weaker families by reducing overall cement prices as they build homes. Under the new system, the earlier distance-based and weight-based slabs have been abolished. Instead, Railways will levy a flat rate of ₹0.90 per tonne per kilometre calculated on Gross Tonne Kilometre, bringing higher predictability and simplicity to freight pricing.
The reforms are accompanied by the promotion of tank containers as a fully pollution-free, multimodal solution for moving bulk cement. These 20-ft standard containers, designed under the Make in India initiative, can carry 26 tonnes of cement and allow fast loading and unloading within 25–30 minutes. Their ability to seamlessly shift between rail and road transport is expected to strengthen end-to-end logistics from manufacturing plants to consumption centres.
The Minister also highlighted the rapid expansion and electrification of the national rail network, noting that India has become the world’s second-largest freight carrier after recently surpassing the United States. Rail infrastructure is now being expanded at 12–14 km per day—three times the rate of a decade earlier—with nearly all broad-gauge routes electrified and over 1,300 stations under redevelopment.
In addition to freight rationalisation, the Railways announced a new policy for establishing bulk cement terminals across the country. These terminals, connected directly to the railway network, will be equipped with silos, hoppers, bagging plants, and handling systems. The facilities aim to provide cost-effective, faster, and more environmentally sustainable cement distribution from factories to consumption hubs. Officials noted that bulk movement of cement via dedicated wagons reduces packaging needs, cuts losses from spillage, and lowers the carbon footprint compared to road transportation.
The Railways expects that the simplified freight regime, improved multimodal logistics, and expansion of bulk cement terminals will substantially lower transportation costs and contribute to more affordable cement availability nationwide.
Impact on Cement Availability & Prices in Kashmir Through Freight
Although Kashmir has a major cement production base with non train supply chain, the new freight policy is likely to have a potentially significant impact on cement availability and prices in Jammu & Kashmir, especially in the Kashmir Valley, where freight costs contribute heavily to high retail prices.
A flat ₹0.90 per tonne-km—without varying slabs—will reduce long-haul freight charges, especially over the 600–1,000 km distances to Jammu and Kashmir.
