Consumption also increased in October to 7.46 mt and to 7.41 mt in November 2000. During the corresponding period of 1999, consumption was 6.56 mt and 7.42 mt respectively.

According to the Cement Manufacturers Association (CMA), there was a marginal rise in exports to 0.38 mt during October and 0.54 mt in November 2000. During the same months in 1999 exports stood at 0.30 mt and 0.32 mt respectively.

Cement despatches also increased during these two months with figures touching 7.75 mt in October and 7.71 mt in November. The corresponding numbers of the previous year were comparatively lower at 6.71 mt and 7.61 mt respectively.

Besides, against the projected domestic growth in demand of 8 per cent for 2000-01, there has been a 3 per cent growth during the first six months, while the capacity utilisation has been around 83 per cent.

Interestingly, the cement scrips have been buoyant in the last three months. "One of the reasons for the buoyancy in cement scrips is the decline in valuation of IT scrips. Secondly, mergers and acquisitions have pushed this factor," Mr DS Wadhera of the New Delhi Corporate Consultancy Services Pvt Ltd had earlier told this newspaper.

There has been boom in the old economy, due to which cement stocks are doing better, says an official of a cement major, adding announcement of concrete roads and development in the housing sector, have further firmed up the scrips.

Meanwhile, the industry is optimistic of a boom in consumption following the Prime Minister's announcement of improving roads in rural areas, along with the expectation of renewed construction activity in the newly-formed states of Uttarakhand, Jharkhand and Chattisgarh.

The prime minister announced in December that the Government would improve rural roads under the Pradhan Mantri Gram Sadak Yojana, and that his administration would earmark Rs 60,000 crore to ensure connectivity of all villages having a population of more than 500 people.

Cement manufacturers say cement roads are the most viable alternative, as they require lesser maintenance compared to tarred roads. Some states like Tamil Nadu and Andhra Pradesh have already taken the lead in going for concrete roads.

The Government's earlier announcement of the construction of the 7,000-km long six-lane expressways, mostly in concrete, and a provision of additional 2 million housing units annually till 2005, has raised optimism among the industry. The country at present has a shortage of 40 million housing units.Industry observers say even if one-fourth of the NHs are laid with concrete it would save fuel for trucks by almost Rs 2,000 crore annually, besides leading to an increase in demand.

At present, the organised sector puts the gap between demand and supply of cement at nearly 10 mt while the CMA puts it at 22 mt, which includes small units as well.