Railways Cuts Cement Transport Rate To Rs0.90 Per Tonne-Km

20 Nov 2025 CW Team

Indian Railways has announced a major reform aimed at benefiting millions of people, particularly middle-class families building homes. Railways Minister Ashwini Vaishnaw said the cost of transporting cement has been sharply reduced under a new Rs0.90 per GTKM (Gross Tonne-Kilometre) uniform rate, a change expected to bring down cement prices across the country by lowering logistics expenses for manufacturers, traders and consumers.

GTKM refers to the cost of transporting one tonne of goods over one kilometre. Under the revised rate, rail freight charges will now be Rs0.90 per tonne per kilometre. For example, transporting 100 tonnes of cement over 200 kilometres will cost just Rs1,800 (0.90 × 100 × 200). This improved cost efficiency is expected to directly reduce market prices for cement.

Vaishnaw noted that cement represents a major share of construction costs for middle-class households. Reducing transport charges, he said, will make home construction more affordable and help more families realise the dream of owning a home. He described the tariff change as a “major reform”.

Indian Railways has also introduced specialised tank containers for bulk cement movement. These containers can be filled directly at factories and transported to consumption centres, reducing handling, speeding up deliveries and cutting logistics costs further.

A key element of the reform is the removal of the long-standing slab-based transport pricing structure. The uniform Rs0.90 per GTKM rate introduces greater transparency and predictability, enabling manufacturers to plan routes and logistics more efficiently. Vaishnaw called it a significant step towards modernising cement transportation in India while supporting both industry and consumers.

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