Gujarat’s small cement factories are facing closure on account of rising manufacturing costs, according to an industry lobby.
The Gujarat Mini Cement Manufacturers Association (GMCA), representing small cement units, also said the state government has done little to help this sector.
“We have proposed to the state government that the mini cement sector be treated as a village industry,” GMCA secretary Kirit Vyas told IANS.
“Most of these units are located in rural areas and can be made eligible for incentives that are granted to rural industries set up under the umbrella of khadi and village industries,” he said.
The association has also asked the state government to reduce the value added tax (VAT) on cement produced by these units by half from the existing 12 percent, as has been done by the Rajasthan government.