The construction lobby is welcoming Pakistani cement imports with open arms.
As cement from Pakistan finally gets ready to land in India with two companies Lucky Cement and Maple Leaf getting the BIS (Bureau of Indian Standards) certification, Indian builders claim that it will reduce their costs substantially and break the existing cartel.
Says Anand Gupta, chairman of Builders Association of India, ?We had requested the Government of India to remove the need for BIS certification for imported cement as this is time consuming resulting in cost increase for us. However, the Cabinet has approved importing one lakh tonne of cement without BIS certification through Minerals and Metals Trading Corporation (MMTC), which will be beneficial for us.?
Last week a statement from the ministry of commerce said, ?The exemption to import cement (by MMTC) without standard mark certification will be valid for 150 days from the date of recording of applications or till the grant of regular licence by BIS to the foreign manufacturer. The MMTC will have to ensure the conformity of the imported cement to the BIS standards.?
Builders claim that they have received quotations from the companies which are ready to export cement at price lower than what the Indian companies offer. The initial quotations reveal that these imports from Pakistan could be priced at Rs 157 even after considering an octroi of Rs 15. This will make it cheaper than its Indian counterparts, by as much as Rs 100 per bag.
?The cement that arrives at the Nava Shiva port can be sold at this price in Bombay, Pune and the surrounding 200 kms,? said Gupta.
According to Mofatraj Munot, MD, Kalpataru Builders, “We are looking forward to imported cement as this would reduce our cost significantly.?
Similarly, Mukesh Patel, MD of Neelkanth Builders said, ?We are exploring the possibility of imports from Korea, however quality is of prime importance to us. Price is not the only criteria for us. We will use imported cement with no compromise on quality.?
BIS is currently examining application from 13 other foreign manufacturers, including 10 from Pakistan and one each from China, Hong Kong and Bangladesh.