Cement production in India is set to rise, according to the Centre for Monitoring Indian Economy (CMIE). In its recent monthly review, CMIE projects growth of 6.4% in the 2012/13 financial year on the back of increased construction activity. Production growth in the December – March quarter is estimated at 4.8%, while the April to October 2012 period saw an 8.4% rise. October alone witnessed cement production growth of 7.3% to 199.1 lakh t. Dispatch figures are set to match production figures, according to CMIE.
Price trends have not met expectations this fiscal, with cement prices holding strong during the monsoon period – when they would usually fall – and declining post-monsoon when they would usually improve.
Meanwhile, the Competition Appellate Tribunal (COMPAT) is to continue hearing the petitions today from cement companies challenging the Rs.6307 crore penalty imposed last year on the grounds of cartelisation. The penalty was set by the Competition Commission of India (CCI), which asserted that ‘the act and conduct of the cement companies establish that they are a cartel’. However, the cement companies accused claim that the ‘principle of natural justice’ was not followed in this case. Five of the cement companies accused have already completed their arguments, while a further six are yet to present their submissions.
Edited from various sources by Katherine Guenioui.