Cement
subsidy offer for the economically weak
The Hindu
Seven private cement manufacturers have come forward to sell cement at
Rs. 200 a bag to people belonging to economically backward sections and
the lower middle class.
They have proposed that a maximum of 400 bags (50 kg a bag) will be supplied
to each consumer on the basis of permits to be issued by district officials
concerned. Their calculation is that these sections of the society will
construct dwelling units in the range of 500-1,000 sq. ft. As per a construction
thumb rule, 20 kg of cement is needed for building one sq. ft. Such consumers
will have to make their payment in advance by demand drafts. In each purchase,
the minimum quantity should be 50 bags.
The cement manufacturers have expressed their willingness to offer 20
lakh bags of blended cement every month in all districts. Each company
will adopt districts close to their area of production for public distribution.
“Cement will be delivered at the doorstep of such consumers [the
economically-backward sections and the lower middle class] against permits
to be issued by appropriate officials in every district. Producers located
outside Tamil Nadu supplying cement to Tamil Nadu will also participate
in this scheme,” representatives of the seven companies said in
their letter to Chief Minister M. Karunanidhi.
A delegation of the manufacturers, including N. Srinivasan (India Cements),
P.R. Ramasubrahmaneya Rajha (Madras Cements) and M.A.M.R. Muthiah (Chettinad
Cement Corporation), called on Mr. Karunanidhi at the Secretariat on Wednesday
and presented the proposal. Other companies are Grasim Industries, Ultratech
Cement, Dalmia Cement (Bharat) and the Associated Cement Companies.
On Monday, Mr. Srinivasan met the Chief Minister and assured him that
he would consult other manufacturers on the issue of reducing the price
of cement. A senior government official says the Industries department
will issue guidelines for the implementation of the scheme on Thursday.
The cement manufacturers have also expressed their willingness to reduce
by Rs. 10 a bag the price of cement they are supplying to Government-run
Cements Corporation. So, the per-bag cost will come down to Rs. 220. They
have reiterated their commitment to supply 14 lakh bags a month to the
Corporation.
Thanking the Chief Minister for his “whole-hearted support and assistance”
to the industry, they have stated that the industry is operating at 100
per cent of its capacity. The cement consumption in the State has grown
by 16 per cent this year against the national growth of 10 per cent.
Concerned with the spurt in cement prices, the government today said it
would not tolerate profiteering though it understood the need of businesses
to earn profits. “We are reviewing cement prices from time to time.
While cement companies can make profits, profiteering cannot be allowed,”
commerce minister Kamal Nath told newspersons here. The minister’s
warning to cement makers comes a few days after the Tamil Nadu government
threatened to nationalise cement companies if private cement manufacturers
failed to check the prices of the construction material.
The commerce minister, however, admitted that there was demand-supply gap, which is also one of the reasons for spurt in prices. “To plug the gap, the government has made import (of cement) liberal… However, the long-term solution would lie in capacity addition,” Nath said. There is a huge increase in construction and this had led to the demand-supply gap. So, the new capacities coming in coupled with greater imports is expected to soften the prices, Nath added.
Pvt Cos to supply at subsidised rate in Tamil Nadu
Chennai: In the wake of Tamil Nadu Chief Minister M Karunanidhi issuing a directive to reduce cement prices, private manufacturers will offer 20 lakh bags of blended cement every month to economically weaker sections in the state at a subsidised rate of Rs 200 per bag.
In a letter to the CM, representatives of the cement industry said each company in the state would adopt certain districts and provide subsidised cement to economically backward sections.