The Cement Manufacturers’ Association has strongly supported the reform, noting that the earlier multi-slab tariff structure often made rail transport uneconomical for typical cement delivery distances.
“Most bulk cement movement involves shorter leads, with transport distances of less than 300 km… This timely policy will ensure that the country’s large infrastructure projects benefit from faster and more efficient movement of cement,” said Aparna Dutt Sharma, Secretary-General of the Cement Manufacturers’ Association.
During the current financial year 2024-25, India’s cement production is estimated at approximately 450 million tonnes, of which around 17 percent is distributed in bulk form. Rail currently handles only 7 million tonnes of this volume. The new measures aim to raise rail’s share of bulk cement movement to 30 percent by 2030, supporting an expected increase in national cement output to 600 million tonnes over the same period.
The policy combines simplified, distance-independent pricing with the creation of modern loading and unloading terminals located close to major consumption centers. Industry participants indicate that these changes will reduce overall logistics costs, shorten delivery times, and lower road congestion while contributing to reduced carbon emissions from cement transportation.
Dedicated tank containers and terminal infrastructure will enable direct transfer from rail to construction sites or ready-mix plants, minimizing handling losses and improving supply-chain efficiency.
Several terminals are already at various stages of planning and construction under the Gati Shakti framework, with priority given to high-volume corridors connecting cement-producing regions in central, western, and southern India to rapidly growing urban and infrastructure project areas.
The initiative forms part of broader efforts to shift greater volumes of essential commodities from road to rail, thereby enhancing logistics reliability and supporting sustainable growth in India’s construction and infrastructure sectors.
By offering competitive and predictable freight rates alongside purpose-built handling facilities, Indian Railways expects to attract significant additional cement traffic in the coming years, helping meet rising demand from large-scale national infrastructure programs more effectively.
