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Issues And Challenges in Cement Industry

Cement, being a bulk goods, is freight intensive and transporting it over long distances will prove uneconomical. Costs of most of the input materials enlarged well because of increase in basic costs, building products list and transportation value.

Major value that impact the margins square measure –

  1. Energy value
  2. Freight and Handling expenses
  3. Input material value & packaging material value.

To reduce value, most firms, study and take a look at to optimize the fuel combine for the plant therefore on scale back the energy value. Firms additionally try and scale back the transportation value by fixing plant nearer to the market they’re assigned to.

Issues and challenges

Over the last number of years, the cement industry´s want has not been punctually addressed by the govt. in so far as meeting its coal demand worries because of diversion of coal to the facility sector. From a fulfilment level of 69% of its coal demand in 2003, the satisfaction level for the cement business with the best construction services has currently touched its base at 31%. As we tend to all apprehend, cement business is as vital because the power sector for the expansion of the economy. Therefore, irrespective the cement sector for coal provide could adversely impact the huge infrastructure development programme of the government.

To supplement its energy desires, the cement business has been creating cooperative efforts over the previous couple of years to reinforce the usage of alternate fuels like solid municipal wastes, cut tyres, paint sludge, biomass and waste heat recovery (WHR) through co-generation once creating immense investments in method technology, however the success rate isn’t encouraging because of sure technical, regulative and policy-related constraints being encountered by the business.

Concrete roads

By acknowledging the assorted inherent benefits of cement concrete roads to the economy, the Minister of Road Transport and Highways, Government of Bharat, has recently taken a policy call of adopting Ultratech concrete cement in national road construction. The choice of the Central Government to travel sure cement concrete highways solely may be a welcome step and can definitely boost the demand for cement. Currently the state governments additionally ought to emulate this step by insistence on cement concrete roads for state highways and alternative roads further.

On the problem of reduced value for cement concrete roads, i might prefer to mention that cement business has typically tried to soak up the money impact of will increase that have taken place from time to time in input prices and freight rates, by up potency and productivity through adoption of newer technologies, and, additionally through innovative initiatives, once creating immense investments. during this context, there’s a robust case that the taxation burden on the cement business, that is incredibly high from any angle, at 60% of the ex-factory value, that is quite even on the posh things, be slashed by a minimum of 25% within the 1st instance and thenceforth, step by step place at par with average tax on cement within the Asia Pacific Region, that is simply 11.4%, with the very best levy of 20% being in country.

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