Date:25/02/2006 URL: http://www.thehindubusinessline.com/2006/02/25/stories/2006022503550800.htm

Back Discounts to woo cement sector

Our Bureau

New Delhi, Feb. 24

New initiatives such as freight discount scheme, loyalty discount scheme and non-peak season incremental freight discount scheme announced in the Railway Budget is expected to woo the cement sector towards opting for the railways for transportation of goods, especially in case of movement of finished products. According to a representative from the Cement Manufacturers Association, almost 90 per cent of cement in the country travels by either rail or road in bags. Under the freight discount scheme, during the non-peak season, if over 90 per cent of the total production of a cement factory is transported by rail, a discount of 1 per cent in freight would be given. The discount, applicable only in case of finished products, would be half per cent if it is above 50 per cent but less than 90 per cent. — Our Bureau