Indian government notes signs of cement sector recovery

Indian government notes signs of cement sector recovery
Published: 19 March 2012

Tagged Under: Pricing India 

The Indian government has noted a recovery in the cement sector and announced adjustments to the excise duty in its Union Budget 2012-13.

While presenting the Union Budget 2012-13 (April-March) in parliament, Pranab Mukherjee, Minister of Finance said: "Data of last quarter of 2011-12, suggests that the economy is now turning around. There are signs of recovery in coal, fertilisers, cement and electricity sectors. These are core sectors that have an impact on the entire economy. Indian manufacturing appears to be on the cusp of a revival."

In its budget announcement on Friday, Mukherjee has proposed a two per cent increase in excise duty from 10 per cent. Excise duty on cement cleared from mini cement plants in bagged form will be six per cent along with additional charge of INR120/t, while duty on cement cleared from other than the mini cement plants will be 12 per cent along with additional charge of INR120/t. The duty will be charged on the retail selling price with an abatement of 30 per cent.

Meanwhile, according to the Economic Survey 2011-12 by the Ministry of Finance, released on 15 March 2012, India produced 209.7Mt of cement in 2010-11 compared to 200.7Mt in 2009-10 - reflecting a growth of 4.48 per cent.