Date:08/01/2008 URL: http://www.thehindubusinessline.com/2008/01/08/stories/2008010850942100.htm

Back TN cement cos to resolve price issue this week

Our Bureau

Chennai, Jan. 7 Private sector cement manufacturers have told the Tamil Nadu Government that they would discuss the issues relating to cement prices and come up with a solution later this week.

According to an official press release, Mr N. Srinivasan, Managing Director, India Cements, met the Tamil Nadu Chief Minister, Mr M. Karunanidhi, on behalf of the cement manufacturers.

Mr Srinivasan has said that the cement manufacturers would discuss the issues relating to cement prices and get back with an appropriate solution before Thursday, the release said.

This follows the stand taken by the State Government last week to control cement prices. Following a high level meeting presided over by the Chief Minister last week, the Government had said that it would consider taking over the cement factories in the State if the manufacturers do not rein in prices.

Import tenders

It was decided that the state-run Tamil Nadu Cements Corporation would import over one lakh tonnes of cement through MMTC and also come out with global tenders for direct import.

The imported cement would be sold in retail through the Tamil Nadu Civil Supplies Corporation at cost price, the Government said.

According to industry figures, cement prices in Tamil Nadu range around Rs 240 a bag and about Rs 230 in Andhra Pradesh. In Maharashtra, the prices range around Rs 290. Prices are driven by a strong demand which is estimated to be growing at about 25 per cent year-on-year in the South with Andhra Pradesh showing a demand growth of about 25 per cent and Tamil Nadu 18 per cent.