AP cement industry urged to hold prices

Hyderabad: With cement prices rising, the month of April could be crucial for the beneficiaries of Indiramma housing scheme, a programme initiated by Andhra Pradesh Government for constructing around 54 lakh houses for weaker sections by the year 2009. A final decision to review cement prices for the scheme will be taken by the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy. In a meeting held between both the parties on Friday, the third week of April has been set for another round of talks, a press release said.

The cement manufacturers had already indicated that they would take a view on prices after March 31. Since July 2006, manufacturers had been providing cement for this rural housing scheme at a rate lower by Rs 50-70 than market price. The current subsidised rates are Rs 135, Rs 145 and Rs 150 per bag of 50 kg, depending on transport cost of cement from various locations.

`Ensure supply'


During the meeting, however, the Chief Minister urged the cement industry to 'arrange and ensure uninterrupted supplies as per the requirements of the Government,' the release said. Indiramma housing scheme will require three lakh tonnes of cement per month for the year 2007-08, he said.

Of the total 20.36 lakh tonnes marked for the year 2006-07 for the scheme, 14.82 lakh tonnes have been supplied. But 5.5 lakh tonnes are remaining, whose supply Dr Reddy wanted to be done at the earliest.

The industry representative from India Cements Ltd, Mr. N. Srinivasan, stated the challenges faced by them in the State. Inadequacy of fly ash and coal, and problems of sales tax and excise duty were pointed out as some of the reasons for the commodity's escalating price.