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Our Bureau

Mumbai, Dec. 9 Cement companies have responded to the reduction in excise duty by cutting prices by Rs 4 to Rs 6 a bag.

Welcoming the Government stimulus package, Ambuja Cement in a press release on Tuesday said “After factoring in the increased railway tariff, the price of ACL cement is expected to go down by Rs 4 to Rs 6 a bag with immediate effect.”

The Indian Railways has increased the freight tariff by changing the classification for coal and cement, which is expected to push the prices of cement up by Rs 1.50 to Rs 2 a bag.

“The Government has not declared a reduction in excise on clinker, which stays at Rs 450 a tonne. Clinker is the base raw material for manufacturing cement. ACL expects the Government to shortly announce proportionate reduction in clinker excise duty to ensure a real reduction in excise duty incidence on cement,” said the company.

As part of its effort to boost demand, the Government reduced excise duty from 12 per cent to 8 per cent across the board. The reduction is expected to moderate the high incidence of excise duty on cement.

ACC Ltd, a Holcim Group company, has also cut prices by Rs 5 a bag, confirmed Mr J. Datta Gupta, Chief Commercial Officer.

UltraTech Cement Ltd, which had cut prices by Rs 3 to Rs 5 a bag two-three months back in the northern and eastern States, besides Gujarat, was weighing options of reducing prices across the country.

Mr K.C. Birla, Chief Financial Officer, UltraTech said, excise duty cut will provide a relief of Rs 8-9 a bag, but railways has hiked freight cost by Rs 2 to Rs 2.50 a bag. “Cost of production has gone up substantially after the Government reduced coal linkages for cement producers,” he added.

More Stories on : Announcements | Cement | Associated Cement Companies Ltd

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