Manufacturers vow to make cement available at reasonable cost after appeal by TN govt

Cement and steel are major construction materials and any increase in price would impact not only housing but the entire infrastructure sector
For representational purpose.
For representational purpose.

CHENNAI: The South Indian Cement Manufacturers Association on Saturday vowed to make cement available at a reasonable and acceptable cost. It said that the industry is closely working with the state government to make cement available at a hugely concessional price for the weaker sections of society.

This comes after an appeal was made by Industries Minister Minister Thangam Thennarasu who held a meeting with cement manufacturers on reducing prices so that people are not affected. The meeting was held with the cement manufacturers on the instructions of Chief Minister M K Stalin.

"Based on the appeal made by the Industries Minister, the cement industry assures the public at large that during the difficult times of pandemic, we will make sure that cement is made available at a reasonable and acceptable price," SICMA said in a release.

SICMA stated that the industry is going through a trying phase during the second phase of Covid by operating at only 30 to 40pc capacity utilisation. "In order to sustain our own survival and in view of an increase in all round cost, price increase of cement was inevitable," the release stated.

This comes after builders and developers have highlighted the rise in prices of construction materials, including cement and steel, impacting the construction sector. Confederation of Real Estate Developers' Association of India (CREDAI) Tamil Nadu President Suresh Krishn said that the price of steel has gone up from Rs 45 a kg to above Rs 70 a kg, while cement prices have gone up above Rs 500 a bag.

Cement and steel are major construction materials and any increase in price would impact not only housing but the entire infrastructure sector. Cement is one of the major construction materials used in all segments of the construction industry namely housing (55 percent to 65 percent), infrastructure (15 percent to 25 percent), commercial and industrial construction (10pc to 15pc) and industry (5pc to 15pc).

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