Andhra Govt. Getting Cement at Same Old Rate

March 9, 2007	(Be the first to rate this story!)  Loading ...
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The cement manufacturers in Andhra Pradesh (AP) have agreed to supply the production at the rate of Rs.140 - Rs.150 per bag. These prices are applicable only to the direct government purchases.

The Officers’ Committee discussed the issue with the industry and narrow down on the decision to instruct the companies to supply cement at the old prices till March 31. This would save the government a whopping amount i.e. Rs. 15 crore, as told by the senior government official.

The meeting followed the notice issued by the cement manufacturers post – Budget, who claimed that such a high excise duty of Rs 10 per bag will force them to increase the prevailing prices by another Rs 12- Rs 15 per bag. Such a decision forced the government to relax the rules as this put construction activities on long hold. Thanks to the chief minister and subsequent meetings by the officials that prevented the situation to go worse and agreed to maintain the price only till March 31, 2007.

The state government is buying about 12 lakh tonne per month for the competition of its housing schemes in the state. In the wake of ongoing real estate projects in AP (including a multitude of housing and irrigation projects), cement consumption in the state has grown to by 5% during the April-January 2007.

News Published Under:   Real Estate India |

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