320Mt cement capacity needed in 11th Plan period: Assocham

Published 27 March 2007

India would need to double its current cement manufacturing capacity to over 320Mt in the 11th plan period to meet the demand of growing infrastructure sector, an Assocham survey said.  
"With infrastructure sector including roads, ports, airports, housing and construction driving the growth, India would need to more than double its cement manufacturing capacity to over 320Mt in the 11th Plan period," Assocham Eco Pulse (AEP) survey said.  
The demand for cement would grow by about 15 per cent per annum even if half of the projected 350 billion dollar investment in infrastructure is made, it said.  
The survey stated that the present capacity of 165Mt is expected to go up by 100Mt in next five years with major industry players taking up capacity expansion.  
But this addition is likely to fall short of the then requirement by about 55Mt, it added.  
To meet the potential demand-supply gap, Assocham demanded, the government should give sops to the companies to enable them increase the production of cement.  
"The government should incentivise the expansion of manufacturing capacity by way of both fiscal as well as procedural steps," Assocham President V N Dhoot said.