Rail freight hike to up cement manufacturing cost
The proposed freight hike on various inputs and the commodity, is likely to push up the manufacturing cost for cement by Rs 7-10 per bag of 50 kg. However, domestic firms will take a decision on this after studying the main Budget.
The Railway Budget proposals, presented by Union Minister Suresh Prabhu in Parliament, proposed to increase freight rates of coal and slag, used in the manufacturing of cement, by Rs 45.70 per tonne and Rs 20.9 a tonne respectively; and also hiked rate by Rs 21 per tonne for cement, but reduced tariff for limestone by Rs 2.7 a tonne.
Coal is a basic necessity for cement making, but all the domestic steel makers do not use slag for making the building material, but those which use it generally carry them by road. Limestone is also mostly ferried by road only.