After the plans to increase its domestic freight traffic, Indian Railways is now planning to expand its trade and transport links with neighbouring countries, especially Pakistan. It is eyeing the transportation of bulk commodities, especially cement from Pakistan.
According to the railway ministry, importing cement from Pakistan would not only boost railways? trade but it would also help in reducing the affects of the current cement crisis in the country.
A Rail Bhawan official said, ?The government has already reduced customs tariff on imported cement and one truck load of it has already come from Pakistan. We are now looking at bringing cement from Pakistan through railways.?
Transport of cement through railways from Pakistan would be cheaper as compared with trucks, the ministry feels. It would also be comparatively hassle-free.While the railways is still evaluating the pros and cons of the proposal and will take a final decision in the coming months, however, much would depend on the keenness and capacity of Pakistan?s cement industry to export cement to India, the official pointed out. If the move gets approved, it would be significant considering that there is hardly any import of cement into the country, the main reason being the problems in its transportation. Cement carried over long distances tends to set due to the moisture in the air.
So far only one truckload of cement has been imported into the country, which came from Pakistan after the government counter veiling duty of 16% and the special additional duty of customs of 4% from Portland cement.
The proposal by the railways comes after the fourth round of India-Pakistan talks on economic and commercial cooperation held last week. The two countries have decided to increase cooperation in a number of fields including their railway networks.
To help increase trade and reduce pressure on the existing lines, India has proposed to open the Munabao-Khokrapar route for movement of rail freight. At present, Attari-Lahore rail route is used for freight movement. India recently became a signatory of the Trans Asian Railway Network, which aims at creating global rail linkages, especially for containerised cargo, especially in the sub continent.