The government?s decision to import cement from Pakistan through the rail route has created fresh discontent amongst cement players in India. The government is reported to soon consider allowing cement to travel till Amritsar instead of unloading at the border, to smoothen supplies. This has created an unhappy reaction among domestic cement manufacturers.
Speaking to FE, HM Bangur, VP, CMA and CMD of Shree Cement Ltd said, ?Right now, there is no dearth of cement in India including Punjab, and any further import of the commodity by the government is unnecessary. Allowing the imports by trucks or by rail till Amritsar is more critical from the security point of view for the government rather than cement,? he adds.
According to reports, India has, in the past six months, imported around 3,00,000 tonne of cement from Pakistan and is planning to double it by June 2008.
?If this gets implemented, it will be a very hasty decision by the government. Also, Pakistan cement does not undergo proper certification like Indian cement, thus putting the whole construction industry at risk,? said Vinod Juneja, deputy MD of Binani Cement.
Experts believe that depreciation of the rupee has resulted in a price hike of Rs 10-15 per bag of imported cement. The earlier gap of Rs 25 between domestic cement and imported cement is now reduced to Rs 10 to 15. Also, in the next six months, the prices of cement are likely to fall by Rs 8 to 10 per bag. Hence, it will be irrelevant if the government takes such measures.
Expressing concern, AL Kapur, MD, Ambuja Cements Ltd said, ?Let the government import cement from where ever they want, but impose countervailing duty to keep the domestic industry at par with them. The industry is not afraid of competition.?
