|
The cement industry is expected to grow at a CAGR of 8-9 percent in the medieum term on account of big investments planned in infrastructure and housing sector.This was stated in an Assocham Eco-pulse study. There are major drivers for higher cement demand such as initiatives taken under the National Highway Development Programme for promotion of concrete highways and roads ,the Pradhan Mantri Gram Sadal Yojana for construction of concrete roads in the rural areas, and Bharat Nirman for promoting irrigation ,water supply, roads, housing, electrification and telephone connectivity. These indicate more opportunities for the domestic cement industry. Indias percapita cement consumption is still behind the world average.The study states that steps need to be taken to support the industry, which has an excess capacity to the extent of 20%.Measures have been suggested such as the cement firms should have captive coal mines so that they do not face any shortage of coal. Though the country, has 80 billion tonnes of coal reserves, there are certain bottlenecks in production management that restricts supply.The government should allocate coal blocks to cement companies. Also, the Government duties on cement ,which are as high as 82% of the ex-factory prices in some cases, should be reduced. |
|
|
|
|
| Posted : 12/7/2005 |
|
|
|
|
