Cement Industry Plans 35mt Expansion Costing Rs 30,000 Cr

This expansion would involve an investment of Rs 30,000 crore which includes investments towards improvement in infrastructure support in the areas of coal mining, rail transport and power. In view of the huge investment being planned in this sector, the Cement Manufacturers' Association has suggested to the Union government that the cement industry be accorded infrastructure industry status so that it can avail of the tax concessions that is being provided to the infrastructure sector.

The association has also requested the centre to continue with the present system of specific excise duty for cement instead of the proposed ad-valorem structure. Modvat credit should be extended to bags used for packing cement at bulk terminals, the association felt.

Cement based infrastructure development projects approved by the government should be given some excise rebate, CMA points out.

The CMA has also sought a reduction in import duty on coal from 35 per cent to 5 per cent and a cut in import duties on cement projects to 20 per cent.

The cement industry is the second largest contributor to excise duty with a total contribution of Rs 2240.30 crore in 1995-96. The duties\levies work out to about 60 per cent of the ex-factory price of naked cement the CMA argued.

The inadequate availability and deteriorating quality of indigenous coal continues to plague the industry./incs/right.asp"-->