The Hindu Business Line : TN cos offer subsidised cement to select consumers

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TN cos offer subsidised cement to select consumers

Rs 200 per bag; District officials to issue permits

Supply chain
Each company would pick up the districts in which it would sell the subsidised cement.
The consumer would have to pay the money in advance by Demand Draft for a minimum lot of 50 bags
The manufacturers would directly deliver the cement to the buyer.

Our Bureau

Chennai, Jan. 9 The cement industry in Tamil Nadu has agreed to sell subsidised cement to support the “economically weaker and middle class consumer.”

According to an official press release, in deference to the State Government’s demand that cement manufacturers control prices, the industry has agreed to sell 20 lakh bags (50 kg a bag) of cement a month at a subsidised rate of Rs 200 a bag to support the economically weaker and middle class consumer. Cement now sells around Rs 240 a bag in the open market.

Manufacturers and others selling cement here have said each company would pick up the districts in which it would sell the subsidised cement. Government officials at the district level would identify the beneficiaries and issue permits. The manufacturers would directly deliver the cement to the buyer.

Plan submitted to CM

A delegation of cement manufacturers led by Mr N. Srinivasan, Managing Director, India Cements, with representatives from Madras Cements, Grasim Industries, UltraTech Cement, Dalmia Cement (Bharat) Ltd, Chettinad Cement Corporation and The Associated Cement Companies, submitted the proposal to the Chief Minister, Mr M. Karunanidhi.

According to the cement companies, the industry estimates that the intended beneficiaries are those constructing dwellings of 500-1,000 sq ft. This would mean they would need a maximum of 400 bags of cement calculated at the rate of 20 kg cement per sq ft.

Once the officials issue the permit based on an approved construction plan, the consumer would have to pay the money in advance by Demand Draft for a minimum lot of 50 bags. The officials would hold monthly review meeting with the manufacturers to follow up on the programme.

Also, the manufacturers have agreed to bring down the price of cement supplied to the State-run Tamil Nadu Cements Corporation (Tancem) to Rs 220 a bag.

They had earlier committed to supply 14 lakh bags a month at a concessional rate of Rs 230 a bag for various infrastructure projects and development programmes.