Railways Cuts Cement Transport Cost To Just 90 paise, A Big Relief For Middle-Class Home Builders

New Delhi: Indian Railways has announced a significant reform that is expected to benefit millions of people across the country, especially middle-class families planning to build homes. According to Railways Minister Ashwini Vaishnaw, the cost of transporting cement has been sharply reduced, which will directly bring down the market price of cement. This reduction is a result of the newly implemented 90 paise per GTKM (Gross Tonne-Kilometre) rate, which aims to lower logistics expenses for manufacturers, traders, and ultimately consumers.

How the 90 Paise/GTKM Formula Works

GTKM stands for Gross Tonne-Kilometre—the cost of transporting one tonne of goods over one kilometre. Under the new uniform rate, the railway charge will now be Rs 0.90 per tonne per kilometre.

For example, transporting 100 tonnes of cement over 200 kilometres will cost only Rs 1,800 (0.90 × 100 × 200). This substantial cost efficiency is expected to bring down the final selling price of cement across markets.

Why It Is a Big Boost for the Middle Class

The minister highlighted that cement constitutes a major portion of the construction cost for middle-class families. By reducing transportation expenses, the government aims to make home construction more affordable. Vaishnaw called it a 'major reform' that will help reduce the overall cost of building a house, allowing more families to fulfil their dream of owning a home.

New Specially Designed Tank Containers

Indian Railways has developed a specialised tank container for bulk cement movement. These containers can be filled directly at cement factories and transported to consumption centres. This streamlined system reduces handling and speeds up deliveries, cutting logistics costs further.

End of Slab-Based Rates for Cement Transport

One of the most significant changes is the removal of the long-standing slab-based transport charges. The new uniform 90 paise/GTKM rate introduces greater transparency and predictability, enabling manufacturers to plan routes and logistics more efficiently. The minister described this as a major step toward modernising cement transportation in India while supporting both industry and consumers.