Cement industry in the two states find happy days ahead, as Andhra Pradesh and Telangana governments are set to procure about 3 mt of cement. The process is already on with the Governments asking the cement manufacturers to commit a quantity to be supplied. As per the Request For Proposals (RFPs), AP is looking at buying 2 mt, while the Telangana wants about 1 mt.
According to S Sreekanth Reddy, Executive Director, Sagar Cements Ltd, the RFPs come almost three years after these volumes went missing. The Telangana government is seeking cement for its low cost housing programmes, while in Andhra Pradesh, it is to meet the needs of Panchayat Raj, irrigation and housing programmes.
However, as the RFPs were floated for the current year, it is likely that only a part of the intended purchase will happen this year. A senior executive of UltraTech Cement said a decision on pricing would be taken by the Governments. ¨It might happen very soon. The ball is in the Governments court now¨,he said. Cement manufactures are tight lipped about the pricing. When asked on the issue, PJ Mathai, Senior Vice President - Marketing, My Home Industries Pvt Ltd (Maha Cement) said, ¨There is no general rule on pricing. It will be fixed on a case-to-case basis depending on concessions such as VAT to be offered by the state government.¨