Cement firms bet big on govt projects ahead of election
Some industry players and analysts feel that demand for cement may rise in the coming months as government expedite key construction projects ahead of Lok Sabha election.
VP Sharma, Chief Operating Officer of Dalmia Cement said the oversupply situation still persists but since elections are next year, a slew of measures by the government may turn things around.
Another industry player pointed out that it will be a wait-and-watch policy for companies. In the past, during election years, spending used to be higher and projects used to pick up. However, whether the recent slew of assurances by the government will actually translate into growth is something that will emerge with time. Industry will see most units operating at 80-85 per cent of their total capacity, the player said.
Prime Minister Manmohan Singh recently assured to industry that the government will take corrective action to revive the industrial climate in the county.