CHENNAI: With the construction sector suffering from a spurt in prices of raw materials, the State government on Saturday vowed to help by introducing a new brand of cement — Valimai — within a week or two. The new product will be launched by the Tamil Nadu Cements Corporation Limited (TANCEM).
Rejecting reports that the cost of cement has shot up by 33 per cent in Tamil Nadu, Industries Minister Thangam Thennarasu said the State government has been monitoring the price, and claimed it has increased by only Rs 20 per bag since April.
The minister’s statement came after TNIE reported how the rising cost of raw materials (which doubled over the past week) has slowed construction activity in TN, leaving developers, builders, and contractors seeking intervention from the State and Union governments. “In the first phase, 30,000 metric tonnes of Valimai cement will be sold in the open market to reduce the cement price. TANCEM has already been selling 90,000 metric tonnes of its Arasu brand,” the minister said.
‘Cement price is only 4.7% more, not 33%’
Thennarasu recalled the price of cement produced by private companies ranged from Rs 420 to Rs 450 per bag in March, and went up to between Rs 470 and Rs 490 in June. He then held talks with private cement producers on June 14. By working with the private players, the government brought down the prices to Rs 420-450. “Due to the shortage of coal, the cement price went up to Rs 470-490 from October 6.
After the State intervened, the price came down to Rs 440-450. So, compared to the price in March, it is now only 4.7 per cent more; not 33 per cent, as being claimed,” he stated. “At present, the price of TANCEM cement ranges from Rs 350-360,” he added. Meanwhile, AIADMK joint coordinator Edappadi K Palaniswami, charged the prices of construction materials went up, affecting employment opportunities.
He said no other State has seen such a steep rise in the price of cement. Palaniswami said the DMK government, as per its electoral promise, should include construction materials on the list of essential commodities and make them available at a fair price.