Tamil Nadu to sell subsidised cement under Amma scheme

Scheme that targets low income class will sell cement at Rs 190 while companies sell a 50-kg bag at Rs 370-385

The Tamil Nadu government today launched its low-cost cement under the brand 'Amma', to cater the low and middle class customers in the state. The state administration has priced the cement at Rs 190, while the companies sell a 50-kg bag at Rs 370-385.

The scheme was launced at Tiruchy and will be expanded to other parts of the state before January 10, said the state government.

The state government will procure around two lakh metric tonnes of cement every month from manufactuers and will sell them through 470 stock points owned by municpal corporations, municipalities and panchayat unions. Tamil Nadu Cement Corporation will be the nodal agency for the scheme.

On September 29, 2014, the then Chief Minister and AIADMK' Supremo J Jayalalithaa had announced the launch of the cement scheme under 'Amma' brand. The state has earlier started low cost canteens, water, salt, pharmacy, fruits and vegetables shops and other schemes under the brand.

The schme has been named after Jayalalithaa who is popularly called as Amma by her partymen.

In her earlier statement, Jayalalithaa said the scheme is to guard common people from the increasing cement prices, and the state government has decided to procure two lakh tonnes of cement from private players every month. "The cement bags that would be sold by the state government will carry the names of respective manufacturers supplying them," said an official who attended the meeting.

For those constructing on a 100 sq ft area will get 50 bags and for the maximum 1,500 sqft, 750 bags will be provided. For renovation or repairing of a houses, around 10-100 bags would be distributed under the subsidised scheme.

Tamil Nadu's monthly cement demand is about 17-19 metric tonne of which 4-4.5 lakh metric tonne comes from Andhra Pradesh and Telangana. This is sold at almost Rs 80-100 per bag, at around Rs 370-380 per bag. The Tamil Nadu based companies have also increased their prices in recently.

The erstwhile united Andhra Pradesh contributed around 450,000 tonnes to Tamil Nadu’s average monthly consumption of 1.7-1.8 million tonne.

Earlier, when the scheme was announced, Jayalalithaa, the then Chief Minister, said, “Subsequently, supplies to Tamil Nadu had reduced to around 1,50,000-3,00,000 tonnes, creating a favourable situation for the private manufacturers to increase prices in the local market.”

The new scheme is aimed to benefit the lower and middle classes, wherein the state will procure 200,000 tonnes of cement from private manufacturers every month and sell them through all urban and rural local bodies at Rs 190 per bag, added the statement.

Beneficiaries are eligible for a minimum of 50 bags for 100 sq ft building space and a maximum of 750 bags for 1,500 sq ft cement can be bought by submitting state government the approved building plan.

Tamil Nadu Cement Corporation will be the nodal agency while the scheme will be implemented by Tamil Nadu Civil Supplies Corporation and Rural Development department through their 470 godowns. The scheme will also cover the state’s Green House and Central government’s Indira Awas Yojana, said the government.