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India hikes freight rates for cement and coal

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World Cement,

India’s Rail Budget was announced today and it’s not good news for the cement sector. Freight rates have been hiked for both cement and coal, which will increase pressure on cement companies’ bottom lines. Coal rates have been increased by 6.3% and cement by 2.7%.

However, on the up side, the government has also announced an increase in freight capacity to 1.5 billion t, up from 1 billion t, and investment of Rs.8.5 lakh crore over five years. Minister Suresh Prabhu promised the government would partner with the private sector to improve rolling stock fleet.

In previous years, the lack of freight capacity has caused a bottleneck for cement producers.

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