Multiple taxations and high freight charges are some of the reasons that deter the cement industry from investing in Himachal Pradesh, India. State-level taxes include a certain goods carried by road tax levied at INR150/t (US$2/t) of cement up to 250km, and an additional goods tax of INR26/t of limestone and fly ash.

The transportation cost in the state is the highest in Asia at INR9.7/km/t of product, according to The Tribune. As a result, no bidders came forward to set up a cement plant in Chamba province by the state government recently.