Cement Price Drop Soon? Indian Railways Slashes Bulk Cement Freight Rate To Rs 0.90/Km; Boosts Affordable Housing

In a major boost to affordable housing, Indian Railways has significantly reduced freight charges for bulk cement transported in containers and introduced a new policy to develop dedicated bulk cement terminals across the country.

The announcement was made by Union Minister for Railways, Information & Broadcasting, and Electronics & IT, Shri Ashwini Vaishnaw, at Rail Bhawan in New Delhi on Monday.

Flat Rs 0.90 Per Tonne Per Km - Slabs Removed Completely

The biggest highlight of the reform is the complete removal of distance and weight slabs that earlier made freight calculations complex and costly.

Under the new structure, bulk cement moved in tank containers will be charged a uniform flat rate of Rs 0.90 per tonne per kilometre based on actual Gross Tonne Kilometre (GTKM) of the train, irrespective of distance or weight slabs, according to the press release.

Addressing the media, Shri Vaishnaw termed the move a “game changer” and said, “These reforms will bring down the cost of cement for the middle and poor families as they build their dream home.”

Tank Containers: Pollution-Free Door-to-Door Solution

The policy strongly promotes the use of specially designed 20-ft tank containers, a “Make in India” product, for cement transportation.
Each container has a payload capacity of 26 tonnes (gross weight 31 tonnes) and can be loaded or unloaded in just 25–30 minutes.

Being ISO-standard sized (20 ft × 8 ft × 8.5 ft), these containers can seamlessly shift between rail and road, offering true end-to-end multimodal logistics without repacking.

The Minister highlighted that tank containers provide an “end-to-end pollution-free logistics solution” for bulk cement.

New Policy to Set Up Bulk Cement Terminals Near Cities

To complement container movement, Indian Railways has rolled out a dedicated “Bulk Cement Terminal” policy.

These terminals, with direct rail connectivity, will have silos, hoppers, bagging plants and mechanised loading-unloading systems. Private players and cement companies can now develop, operate and maintain such terminals under the new guidelines, the release stated.

The terminals will allow large-volume movement of loose cement in specialised wagons from factories to consumption centres, cutting both cost and carbon footprint significantly compared to road transport.

Multiple Benefits: Cheaper, Greener, Faster

• As per release, the twin reforms are expected to deliver:
• Substantial reduction in cement transportation cost
• Sharp drop in carbon emissions and road congestion
• Minimal packaging and almost zero spillage loss
• Faster turnaround through mechanised handling
• Large single-consignment movement

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India Now World’s Second-Largest Rail Freight Carrier

During the event, Shri Vaishnaw also shared that India has overtaken the United States to become the world’s second-largest railway freight carrier.

He added that track laying speed has jumped from 4 km per day (2004-14) to 12–14 km per day, while the broad-gauge network is now almost 100% electrified. Over 1,300 Amrit Bharat stations are also under redevelopment.