CHENNAI: “With a new cement manufacturing plant Tamil Nadu Cements Corporation Ltd (TANCEM) able to manufacture 10 lakh tonnes of cement annually, it keeps the price of cements under control. If not for Valimai Cements, manufactured by TANCEM, the price of cement would have increased by at least Rs 40 per bag (50 kg),” Krishnan told DT Next.
The ongoing Russia-Ukraine war has spiked the price of raw materials used in construction industry. It’s due to the shortage in the supply of raw materials from not just Russia and Ukraine, but also due to policy changes in countries supplying raw materials.
An official attached to Industries Department said that there are several factors involved in increase in prices. For instance, Indonesia is one of the key suppliers of coal to India, but the Indonesian government’s recent policy change mandates that minimum of 25 per cent should be supplied to the companies in Indonesia. So, a shortage of coal for cement plants is leading to the rise in prices.
However, for TANCEM, there is direct supply of coal from the local coal plants and from Rourkela in Orissa, which is not the case for private cement companies. They’ve agreed to keep prices under control as promised earlier.
“In recent talks held with Industries Minister Thangam Thennarasu, the cement manufacturers have agreed to keep prices at the rate promised. Similarly, the steel manufacturers, as per prior agreement, have reduced the price for steel by around Rs 1,500 per tonne,” explained Krishnan.
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