TN threatens to take over cement firms

Amid soaring cement prices and allegations of cartelisation by private cement companies, the Tamil Nadu government warned the companies to lower prices or risk takeover by the state.

The government also decided to import 100,000 tonnes cement and sell it to people at cost price, said an official release.

These decisions were taken at a high-level meeting presided over by Chief Minister M Karunanidhi yesterday.

"If private cement companies don't come forward to reduce the prices, the government will be left with no option but to take over the cement factories in the state in public interest," the government statement said. The meeting also decided to ensure faster imports through global tenders.

The Tamil Nadu Cements Corporation (Tancem) would import 100,000 tonnes cement through state-run MMTC Ltd to tide over the cement shortage in the state. An order to enable Tancem to do this would be issued immediately, said an official.

The imported cement would be stocked in over 200 godowns across talukas and districts of the Tamil Nadu Civil Supplies Corporation and sold to public directly, the statement said.

PMK founder S Ramadoss urged the state government to sell cement through public distribution shops. The construction industry and political parties have been accusing the state government of not taking steps to reduce cement prices.

The executives of different cement companies in the state could not be reached for comment.

Shares of India Cements Ltd, based in Chennai, the fell 1.60 rupees, or 0.5 percent, to 307 rupees at the 3:30 pm close of trading on the Bombay Stock Exchange, according to Bloomberg