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Government re-affirms Cement procurement from Indian Manufacturers

Capital Market 

Catalyse Make in India to Build India said Mr Anand Kumar, MD, NHIDC, Ministry of Roads, Transport & Highways. Though cement Industry has issues in term of pricing, fuel, logistics and other, constant dialogue amongst stakeholders and time bound solutions can help the industry to survive and grow.

The proportion of Cement usage in new roads and maintenance of existing roads is set to increase. Several innovate measures such as cement roads can help in increasing the demand of the most indigenous product. The mindful growth of the industry in holistic manner can take the industry on the upward trajectory. The Cement industry aims to achieve a production capacity of 550 MTPA by 2025, India cement production was 270 MT in 2015.

Cement industry is unique in terms of ample supply and limited demand. To address this on sustainable basis, Central Government has taken several initiatives such as Make in India, Smart Cities, Housing for all, commercial construction and industrial construction to fuel the demand of Cement in the country. Housing sector itself amounts to 67 % of demand.

While, there is a demand of 3 million houses in rural areas, there is a similar excess in urban areas. Mr Ajay Kapur, MD& CEO, Ambuja Cements ltd felt that a good monsoon season can spur the demand in rural areas.

Demand for cement is expected to rise, cement companies are expected to scale up production by 56 MT in the next 3 years. Government has also allowed 100 % FDI in the sector, set up PCPIRs and increased focus on R& Ds.

While the potential is high, cement industry is facing challenges in terms of high taxes next to luxury good. Logistics is also an important issue for the industry. While railways and roads are biggest carrier, alternate transport solutions such as waterways can reduce time and cost and make industry more competitive. The use of Alternate Fuel Resources can address the issue of rising fuel prices and energy efficiency.

Propagating the Hon'ble Prime Minister's agenda of Zero Effect Zero Defect, the industry experts focused on adopting mechanism of re-using cement plant hazardous wastes. Members felt that instead of setting up new plants, cement waste needs to be utilized for developing alternate products. An organized system of waste management can make the industry sustainable globally.

Indian cement industry being the 2nd largest in the world with one of the most technologically advanced plants with minimum CO2 emission levels is providing direct employment to approx. 150,000 and indirect employment to approx. 500,000 people, anticipates steep growth in the coming decade.

The CII Cement Industry Division is working closely with the key stakeholders to create a sustainable growth environment for the Indian cement industry.

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First Published: Mon, May 09 2016. 17:05 IST