NE BUSINESS BUREAU
CHENNAI, FEB 2
Cement manufacturers representing southern India on Tuesday said the steps announced by Finance Minister Nirmala Sitharaman in the budget to boost the realty sector would give a big fillip to cement demand in the country.
The South India Cement Manufacturers Association (SICMA) said the budget also addressed the various requests made by the cement producers from the South. Terming the budget presented by Sitharaman on Monday, as ”historic”, the Association led by noted industrialist N Srinivasan said, for the first time, infrastructure spending is going deep into Southern parts of the country was ”extremely welcome” (move). “The steps announced by Finance Minister to boost realty sector and affordable housing will also help in giving a big fillip to cement demand,” the Association said in a statement.
Noting that the southern states account for more than one-third of the country’s limestone deposit, the region has the potential to become a cement hub for future development across the country and for exports.
The budget has special emphasis on infrastructure, particularly in the Southern States, not only on roads but also investments in the metro rail, freight corridor from Vijayawada to Kharagpur.
SICMA said it already made representations to the Commerce Ministry that the road and infrastructure projects need special variety of cement.
The cement units in the southern region were sitting idle and can be utilised for the infrastructure products in central, eastern and north eastern regions by offering either a telescopic freight or a long lead discount, thereby increasing rail traffic, the association said.
SICMA was recently formed representing the cement producers of Southern States and it is led by India Cements Ltd Vice Chairman and Managing Director N Srinivasan.
