Domestic cement demand is expected to register a modest growth of one per cent in 2017-18 fiscal driven by pick-up in affordable and rural housing and road and irrigation projects, rating agency Icra said today. As per the agency, the cement offtake has continued to remain weak in April-September and also in October due to factors such as weak real estate activity, sand shortage and GST implementation issues. While the demand growth is likely to be driven by a pick-up in the housing and infrastructure segment, new project announcements from the private sector continue to remain weak. "Going forward, the demand growth is likely to be driven by a pick-up in the housing segment primarily affordable and rural housing - and infrastructure segment, mostly road and irrigation projects," ICRA Ratings Senior VP and Group Head, Sabyasachi Majumdar said. Majumdar further said revival of public-private partnership is crucial to improve the pace of infrastructure development. Domestic cement demand is expected to register a modest growth of one per cent in the current fiscal on the back of a rebound in cement demand from the fourth quarter of 2017-18 as against the earlier expectation of the third quarter, Icra said.
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