Cement Firms Running on Low Capacity

Cement Firms Running on Low Capacity

Insufficient demand from the domestic market has forced cement manufacturers to cut down production and to operate at 60-70 per cent of their installed capacity.

Speaking at an event organised by the Cement Manufacturers' Association, Planning Commission Member BK Chaturvedi said that while economic growth and with it, the demand for housing, road and infrastructure sectors, may raise the demand for cement, the industry too, should improve its competitiveness. 'India has grown well in last two decades. However, last year and the current year, there had been some slowdown... The capacity utilisation of cement industry has been around 70 per cent. In case, it has to be completive, something more needs to be done,' Chaturvedi said. He added that there is a need to be cost competitive to be able to export.

At the event, DIPP Secretary, Saurabh Chandra said that the unutilised capacity must be used for exports. Currently, India exports two to three per cent of its production mainly in the form of clinker. Earlier, around 10 million tonnes of cement was exported from India every year to companies in Indonesia, UAE, Nepal and Bangladesh. Now, some of them have set up their own grinding units.

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