High expenses deter industry from investing in Himachal Pradesh

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.