Cement industry is expected to grow at 8-9 per cent compounded annual growth rate (CAGR) in medium term, according to industry chamber Assocham.
This growth expectation stems out from the committed big investments in infrastructure and housing sectors, the chamber said in its latest ’Eco Pulse’ study.
Proposed investment to build concrete highways and roads, under National Highway Development Programme and PM Gram Sadak Yojna and strengthen irrigation system, water supply, housing, electrification and telephone would act as catalyst to growth, it said.
"It is expected that boost in infrastructure and housing development programmes, retail and industrial activities will lead the domestic cement sector to grow stronger," Assocham President Anil K Agarwal said.
He favoured taking steps to boost the industry, which has a surplus production capacity of around 20 per cent.
The chamber also sought reduction in government levies and duties, which accounted for as much as 82 per cent of the ex-factory price.
On shortage of coal, a basic fuel for cement industry, it said: "Government should make attempts to allocate coal blocks to companies for captive use as cement industry happens to be a core industry".