In India, the Union Budget announced on Saturday added further pressure to the cement industry’s bottom line. The Clean Energy Cess on coal (domestic and imported) was increased from Rs.50 per tonne to Rs.100 per tonne and the basic customs duty on imported coal increased from 2% to 2.5%. The excise duty on cement was increased by Rs.100 to Rs.1000 per tonne. Taking this in combination with the earlier announced increase in freight costs, the cement industry will face higher input costs going forward. Prices are likely to rise by Rs.15 – 20 per bag.
However, there was also good news for the cement industry, which will benefit from increased government investment in housing, infrastructure, roads and highways. Overall spending on infrastructure is set to increase by 24% to Rs.2.1 trillion.
Today, the Commerce and Industry Ministry announced that it is seeking the imposition of import duty on cement, which is currently zero.
Edited from various sources by Katherine Guenioui
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