The North Central Railway’s Prayagraj Division has officially joined hands with Dalmia Cement (Bharat) Limited to streamline and expand rail freight operations at the Chunar plant in Uttar Pradesh. This strategic partnership, formalized on August 10, 2026, aims to revitalize logistics connectivity and significantly increase the volume of cement and raw materials transported via the Indian Railways network.
- Agreement signed on August 10, 2026, to enhance freight movement from the Chunar plant.
- Targeting 10 full rakes per month starting from September 2026 to transport approximately 26,000 tons of cement.
- Inward logistics to include 15 rakes of clinker and 1-2 rakes of gypsum monthly to support production.
- Railway siding restored following critical bridge girder repairs completed in early August 2026.
Scaling Up Freight Operations
The collaboration marks a significant recovery for the Chunar facility, which was acquired by Dalmia Cement for Rs 2,850 crore in May 2026. After production resumed in June, the railway siding—which had been out of service since January 2026 due to infrastructure damage—was successfully repaired and reinstalled on August 6, 2026. This restoration is the backbone of the new agreement, allowing for the immediate resumption of rail traffic.
According to the agreement, the Prayagraj Division expects to handle seven full rakes (approx. 15,000 tons) of cement in August, scaling up to 10 full rakes (approx. 26,000 tons) monthly from September. Officials project that overall freight movement will eventually reach 20 to 25 rakes per month as production capacity at the plant continues to grow.
Strategic Importance for North Central Railway
The deal was signed by Sheerat Fatima, Senior Divisional Commercial Manager/Freight of North Central Railway, and P. Sudalai Muthu, National Logistics Operations Head of Dalmia Cement. By integrating the Chunar plant’s logistics into the rail network, the Prayagraj Division aims to secure a steady stream of freight revenue while providing a reliable transportation solution for the industry.
Historically, the siding was a high-performing asset, handling an average of 14 outward cement rakes and 13 inward clinker rakes monthly during the 2023-24 financial year. With the facility now back online, the railway anticipates that this partnership will not only improve existing logistics but also serve as a blueprint to attract new industrial customers to choose rail over road transport, ensuring long-term growth for the region’s freight infrastructure.