The Hindu Business Line : ‘AP leads in cement capacity expansion’

Hyderabad, Aug. 3 Andhra Pradesh is leading in the cement capacity expansion among the States and is expected to feed the entire south India over next three-four years, according to experts.

“This is fact as there are no lime stone deposits in Kerala, Pondicherry and South Karnataka while in Tamil Nadu, cement grade lime stone deposits are fast depleting. So, Andhra Pradesh will have to feed the entire south India in the near future,” Mr Ramesh Chandro, Managing Director, Ckoramaandel Cements Ltd, told Business Line here.

Capacity

Currently, the cement industry’s operating capacity in the State is about 26 million tonnes (as on April 1), followed by Rajasthan (21 mt), Madhya Pradesh (18 mt), Gujarat (17 mt), Tamil Nadu (17 mt) and Chhattisgarh (11 mt) according to industry statistics.

“During 2007-08, an additional capacity of two-three mt will be available in the State. In fact, an additional capacity of two mt becomes operation during the first half of the fiscal while another four mt can be added by the year-end,” Mr Ramesh explained.

According to Mr K.V. Vishnu Raju, President of All India Mini Cement Manufacturers Association, the capacity expansion of many mini cement plants had already begun. “The demand is significant even in the monsoon season,” Mr Raju said. “In addition to the on-going infrastructure projects, the Government welfare schemes and private housing, the expected FDI in housing and sanction of several National Highway projects in the State will pep up the demand further,” Mr Ramesh said.

In 2006-07, Andhra Pradesh witnessed a 14.5 per cent growth in cement consumption while in the first quarter of the current year; it grew by 18.5 per cent.

“This year, we are expecting the consumption to record more than 20 per cent growth,” he predicted.

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