The cement industry in the southern region is reeling under the impact of 'nil growth', a top official of a city-based cement manufacturing firm said today.
"The expected recovery in economy has not happened (so far). Cement industry is fractured, it has created capacity ahead of demand and out of 360 million tonne capacity (nationwide), 100 million tonne remain idle", India Cements Ltd Vice-Chairman and Managing Director N Srinivasan told reporters here.
"Cement is one commodity which cannot be stored. Even if we want to store where is the space available?", he asked.
The government has not realised the 'malaise' which has crept in, he said, adding that the cement consumption, which was at 24 lakh tonne per month in 2009, has come down to 12 lakh tonne per month now.
"For example, if a cement bag is Rs 370, the VAT paid to state government is Rs 48, excise duty about Rs 49 and the freight cost Rs 40 (in Tamil Nadu)", he said.
"The cement industry has paid for the economy from Independence till now and credit must be given to it.
"Unfortunately, cement in the market is considered as a commodity and not as a manufacturing product", he added.
