The Dalmia Cement factory located in Chunar in Uttar Pradesh's Mirzapur district will now send its cement out by train. Indian Railways and Dalmia Cement have signed an agreement under which the railways will transport around 26,000 tonnes of cement every month to various metro cities across the country. Once the agreement takes effect, the transport of cement by rail will begin from August, giving the railways a solid new source of revenue while also making deliveries faster and more punctual than road transport.
The Dedicated Freight Corridor speeds things up
The central government built a Dedicated Freight Corridor to make cargo movement easier, and freight transport across the country has picked up pace since it became operational. The Mirzapur factory earlier belonged to Jaiprakash Associates Limited, and it has since been acquired by Dalmia Cement. As a result, the plant that was once known as JP Cement will now be known as Dalmia Cement. Cement production resumed at the factory from June, and once production restarted, Dalmia Cement and the railways signed a Memorandum of Agreement, or MoA, for the transport of goods. Under this agreement, cement as well as raw materials will be moved by rail, and the company will pay the railways a fixed amount in return.
How many rakes will run from August to September
According to the agreement, around 6 to 7 rakes carrying close to 15,000 tonnes of cement will be sent to Ayodhya, Ghazipur, Deoria, Chilbila and several other locations in August. From September, the pace will pick up further, with around 10 full rakes carrying close to 26,000 tonnes of cement being sent to different destinations. It is not just finished cement that will move by rail; the railways will also supply the raw materials the factory needs for production. Under the arrangement, around 15 rakes of clinker and 1 to 2 rakes of gypsum will be brought in by rail every month. This steady supply of raw material is expected to help boost the factory's production capacity as well.
Railways is bringing in new industrial customers
Railway public relations officer Amit Singh said the North Central Railway is continuously looking for opportunities to connect new industrial customers to rail transport, and is working to promote safe, affordable, reliable and environment-friendly rail transport. He said that Dalmia Cement's large-scale rail transport from Chunar will boost the railways' revenue, while the industry will also get a more reliable and better logistics facility. This will allow goods to reach their destination on schedule, benefiting both the company and the railways.
