The 220-million tonne cement industry is happy with railway minister Mamata Banerjee for keeping the freight rates unchanged. However, the industry was expecting a revision in the freight classification which the government had in December 2008 changed to 150 from 140 for cement, coal and coke. This had resulted in an increase of 7-8% in freight costs for cement companies.

Shree Cement CMD and president CMA HM Bangur said, “It is a practical Rail Budget. The railways have become more competitive and this financial year will witness more cement loading through railways compared to last year.”

ACC Ltd managing director Sumit Banerjee said, “This is a contemporary budget with some new thoughts and directions. But as far as cement industry is concerned it is a neutral budget.”

Binani Cement MD Vinod Juneja considers the Rail Budget to be flat. “We were looking at uniform rate of freight charges for all the commodities, which has not happened. However, increase in the number of wagons has come as a good news for us,” he added.

The Rail Budget has planned to introduce double decker coaches for inter-city transport and 18,000 new wagons in FY10.

Giving green signal to the Rail Budget, the cement industry is on the other hand concerned by the rise in the petrol and diesel prices as the transporters have asked for 6-8% hike on freight charges.

“The hike in diesel prices will increase our cost of production. However, the increased cost will not be passed on to the consumers immediately,” Bangur added.

... contd.