The Cement Manufacturers Association yesterday expressed concern to the ministry of commerce and industry about the unavailability of adequate transportation facilities to transport cement across different parts of the country.
 
"Availability of open as well as closed wagons needed for transporting coal and cement was about 30 to 40 per cent lower than the total need for the cement industry in Central India", AV Srinivasan, secretary, Cement Manufacturers Association, said.
 
Madhya Pradesh, Chhatisgarh, Rajasthan were affected the most, he added.
 
The shortage in the number of rail wagons was partly due to the higher demand of coal from the power sector which were thriving for a full capacity utilisation, he added.
 
With the lower availablity of rail transport, that of road had risen, but in this case also, the withdrawal of tokens had put pressure on the companies.
 
A truck would normally overload 60 per cent over its gross carrying capacity, but due to the withdrawal of tokens that the state governments would give to the transporters for overloading, a significant amount could not be despatched.
 
When nearly 65 per cent of the cement was transported by road, the sudden stop to the permits would necessitate larger supplies of trucks, he said.
 
There could be a supply constraint in different parts of the country as well as adversely hit the profits of cement companies, he added.
 
At the same time, the freight charges have gone up by Rs 110 a tonne due to hike in diesel prices, said a cement industry executive.
 
In April- December 2003-04, the cement despatches have been 4.3 per cent higher than the same period last year.
 
Cement prices have gone up in Rajasthan to Rs 140 a bag now from Rs120-125 a bag in November. In Delhi, prices have risen from Rs 125-130 a bag to Rs 145 a bag.

 
 

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First Published: Jan 14 2004 | 12:00 AM IST

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