The cartel reportedly formed by the cement manufacturers in Chhattisgarh has come under the scanner of the state government as the latter on Friday announced to examine how the lobby was created that skyrocketed the price of cement.
In Chhattisgarh, which houses more than seven major cement factories, the price of cement bag has gone up by nearly Rs 100 in last two months. The state having rich limestone deposits in the Raipur-Bilaspur belt is poised to become the largest cement producing state in India.
Currently, it has 7 cement plants with a total production capacity of 13.8 Million Tonne Per Annum (MTPA). With the expansion plan and new projects, the cement manufacturers in Chhattisgarh plans to add over 100 MTPA capacity, which would result in total manufacturing capacity that is 51 per cent of India’s current cement manufacturing capacity.
“The unexpected price hike of cement was a result of illegal cartel formed by the cement manufacturers of the state that regulated the new price of cement,” Devji Patel, a senior Bharatiya Janata Party (BJP) legislator, said in the Chhattisgarh Legislative Assembly on Friday. He said the cartel was illegal as it did not have the representation of consumer forum, traders and people.
