India’s freight hike on cement and coal takes effect tomorrow

The hike in freight rates proposed in the Rail Budget on 26 February will take effect tomorrow. Coal rates will be increased by 6.3% and cement by 2.7%. Indian Railways plans to carry 1186 million t of goods in FY15/16, up from 1105 million t in the current financial year. The Railways plans to raise an additional Rs.4000 crore by freight rate increases across various goods.

Increased freight rates will lead to higher costs, which will be further aggravated by the Clean Energy Cess on coal, which will double according to the FY15/16 budget, as well as a significant increase on the excise duty on cement.

Cement production increased by 0.5% in January 2015 compared to January 2014, and by 7.1% between April 2014 and January 2015.

Edited from various sources by Katherine Guenioui

Sources:

• India Infoline
• Business Standard
• Economic Times

Read the article online at: https://www.worldcement.com/asia-pacific-rim/31032015/india-freight-hike-on-cement-and-coal-takes-effect-tomorrow-617/