 "Jayalalithaa to launch cement scheme under 'Amma' brand")
Under the scheme, state government will procure cement from private manufacturers and sell it to consumers at a discounted Rs 190 per bag (50 kg), as against the market price of Rs 300-350 a sack.
According to the government, the scheme would insulate consumers from the high cement prices in the open market.
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Industry sources said cement prices across south India were up over 125 per cent in the recent months and the current price stands at Rs 300-350.
In a statement today, Tamil Nadu chief minister J Jayalalithaa said recently she had held discussion with the officials to take stock of the production of cement in the state and the supply position in the neighbouring states.
The erstwhile united Andhra Pradesh contributed around 450,000 tonnes to Tamil Nadu’s average monthly consumption of 1.7-1.8 million tonne, but the companies there had now hiked prices by Rs 80-100 per bag, it said in a statement.
“Subsequently, supplies to Tamil Nadu had reduced to around 150,000-300,000 tonnes, creating a favourable situation for the private manufacturers to increase prices in the local market,” said chief minister Jayalalithaa in the statement.
The new scheme is aimed to benefit the lower and middle classes, wherein the state will procure 200,000 tonnes of cement from private manufacturers every month and sell them through all urban and rural local bodies at Rs 190 per bag, added the statement.
Beneficiaries are eligible for a minimum of 50 bags for 100 sft building space and a maximum of 750 bags for 1,500 sft. Cement can be bought by submitting state government the approved building plan, she said.
Tamil Nadu Cement Corporation will be the nodal agency while the scheme will be implemented by Tamil Nadu Civil Supplies Corporation and Rural Development department through their 470 godowns, the chief minister said.
The scheme will also cover the state’s Green House and Central government’s Indira Awas Yojana, she said.