The cement industry welcomes the BAI decision to set up cement plants, but they should understand that by just setting up cement units they cannot bring down the prices, said Mr Vinod Juneja, Managing Director, Binani Cement.

The excess capacity of cement in the system is already exerting pressure on the cement companies as their margins are shrinking. Besides, they have to face the challenge of acquiring land, getting environment clearances and securing raw materials at competitive prices.

“Our humble request for BAI is to work with us in harmony so that both can prosper,” he said.

Firm in resolve

The Builders Association appears firm in its resolve to set up cement plants, fully conscious that it would take well over three years to commission one.

Once the funds are in place, a call will be taken on the best way forward. “We will also look to at some cement companies that are on the BIFR list, said Mr Krishnaiah.

Mr Shankarbhai Desai, former BAI president, said they would also look at setting up grinding units close to metros such as Mumbai, so that the clinkers could be obtained and ground, to ease the impact of transporting cement bags in toto across long distances.

Mr Anand Gupta, Treasurer, BAI, said the association has over 11,500 direct members. There were about 53 listed infrastructure companies and over 40 real estate companies, besides large firms that were privately held. The intention was to collect Rs 10 lakh to Rs 5 crore each from members for equity investment, where the smaller investor would get 1000 tonnes and the larger one 50,000 tonnes of supplies.

On consumption, he said 60 per cent consumers were the housing industry and the balance was equally split between infrastructure and general industrial and commercial users.

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