Economy & Market
Andhra Pradesh asks cement companies to drop prices
A Group of Ministers (GoM), constituted by the Andhra Pradesh government to look into the issue of rising cement prices has held talks with representatives of various cement companies. The government has directed cement companies to slash prices "immediately", but these firms have said that they would "revert on the issue" in two days.
According to the cement companies, they would face an approximate tax incidence of around Rs 40 per bag after the new Goods and Services Tax (GST) comes into force. But the GoM does not want the cement companies to hike prices before the new tax regime is rolled out.
The Andhra Pradesh government is now arguing that it already gives the state's cement companies "many concessions and benefits", so the GoM has maintained that the cement firms cannot hike prices unilaterally, placing a burden on the common man.