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Thursday, May 21, 2009

Push For Infra May Push Cement...!

Infrastructure development is high on the UPA's agenda and cement makers are looking for a step up on this front with some even pitching for concrete roads.

HM Bangur, MD of Shree Cement, said, "Cement roads is the need of the country now. It is far cheaper to build cement roads than tar roads. High consumption of cement can be spurred by cement roads."

There are indeed high expectations of some stimulus for infrastructure and housing sectors from a strong government at the centre.

DD Rathi, additional director and ex- CFO of Grasim Cement, said, "The government should push up the infrastructure spending. Some impetus should be given to housing. Cement growth now would be much better."

However, what still remains a big concern for the 220 million-tone capacity cement sector is—overcapacity with large projects in the pipeline.

Ashish Guha, country head of Heidelberg Cement, said, "Cement capacity is seen to be reaching 250-260 mt by FY10. The long-term capacity utilization is seen to be around 80 – 85 per cent."


source: NDTV PROFIT

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