PLASTERING DEMAND - SUPPLY MISMATCH
Article Abstract:
The cement industry is facing a demand-supply mismatch problem due to excess capacity. The production for April-January 1998 was 5.25 percent higher at 65.37 million tonnes (mt)as against 62.11 mts in April-January 1997. Further by the end of 1997-98 financial year around 107 mts cement capacity will be fully operational as against 100 mts in March 1997. To increase the demand for cement, the Government needs to take measures to boost housing demand. The Government had planned to build 2 million houses each year. If the plan is implemented, it will require 2 to 2.5 mts of cement. The Cement Manufacturers Association has recommended construction of cement concrete roads since they work out to be cheaper in the long run and also reduce the fuel consumption upto 14 percent. The 7,000 km road from Kashmir to Kanyakumari and Silachar to Saurashtra, which were announced in October 1998, are said to create a good demand for cement. Reduced taxes and levies will boost demand for infrastructure projects. (um)(psr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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CEMENT OUTPUT UP 5.25%
Article Abstract:
Cement production increased by 5.25 percent to 7.57 million tonnes during April 1998 - January 1999 compared to 6.94 million tonnes during April 1997 - January 1998. The trend in cement consumption across the country has not been even despite the output growth. The eastern region has shown a consumption growth of 12 percent while states like Maharashtra and Gujarat have shown a negative growth of 5 and 4 percent respectively. The southern region has shown a negative consumption growth of 1.22 percent. (khr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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