Companies to sell cement in TN at Rs 200/bag

Within a week of the Tamil Nadu government's threat of taking over cement factories in the state if the companies did not cut prices, cement manufacturers have offered to sell 20 lakh bags of blended cement every month in all districts of Tamil Nadu at a subsidised price of Rs 200 per 50 kg bag.

Top officials of cement companies like India Cements, Madras Cements, Grasim Industries, Associated Cement Companies, Ultratech Cement, Dalmia Cement and Chettinad Cement met Tamil Nadu Chief Minister M Karunanidhi today, and submitted their joint acceptance letter stating their intention to make available cement at reduced prices.

Each cement company in the state will adopt certain home districts near their place of opeations, and extend the benefit of subsidised cement to economically backward sections and lower middle class in these areas.

District-wise quantities offered by each company will be submitted separately, according to the letter submitted to the Chief Minister by the cement companies.

The  cement bags will be delivered to consumers against permits to be issued by district officials. Cement producers located outside the state but supplying cement to Tamil Nadu will also participate in the scheme, the statement said.

To procure cement at Rs 200 per bag, consumers need to get their approved plan verified by district officials. Based on a thumb rule, which defines that construction projects up to 500 sq ft in area will require about 200 bags of cement, the official will issue permits to cement companies for the quantity required for each construction. Purchases will be in minimum lots of 50 bags.

Since the purpose is mainly to cater to the economically backward sections and the lower middle class, maximum permit quantity for any individual may be limited to 400 bags for constructing a structure of maximum 1,000 sq.ft area. It has also been said that district officials may hold a review meeting with cement producers at the end of every month.
 
Cement manufacturers have also agreed to reduce the price of cement bags committed to the Tamil Nadu Cements Corporation (Tancem). The companies will supply 14 lakh bags of cement per month to Tancem at Rs 220 per bag as against the earlier price of Rs 230 per bag.