Monday, 31 October 2011
After five years , the state government re-enter the cement retail business in Tamil Nadu and Kerala
After a gap of five years , the state government has decided to re-enter the cement retail business in Tamil Nadu and Kerala with a view to reining in the skyrocketing prices .
At a timewhen private manufacturers sell cement at Rs 280 to Rs 300 per 50kg bag , the Tamil Nadu governmentowned Tamil Nadu Cements Corporation (TANCEM) will sell its Arasu brand at Rs 255 per bag to retailers and at Rs 240 per bag to bulk purchasers . A senior official said , "We promise to slash the prices further if private manufacturers join the competition . Our rates will be always kept below that of private players ." The builders' community has welcomed the move . DLF executive vicepresident KK Raman said , "It's a good initiative from the government . It may lead to cement prices heading southwards . Cost of construction will come down if private playersfollowsuit ."
TANCEM proposes to first clear its stock of nearly 6,000 tonnes that has piled up in various godowns. Over and above that, depending on the demand, it will push another 2,000 tonnes a day into the market.
Though TANCEM has an installed capacity of about 9 lakh tonnes per annum, one of its kilns at Alangulam in Virudhunagar district is shut down and its effective production is only 7 lakh tonnes as of now. The supply would be routed through about 200-odd active stockists of TANCEM in the Tamil Nadu and Kerala.
At a timewhen private manufacturers sell cement at Rs 280 to Rs 300 per 50kg bag , the Tamil Nadu governmentowned Tamil Nadu Cements Corporation (TANCEM) will sell its Arasu brand at Rs 255 per bag to retailers and at Rs 240 per bag to bulk purchasers . A senior official said , "We promise to slash the prices further if private manufacturers join the competition . Our rates will be always kept below that of private players ." The builders' community has welcomed the move . DLF executive vicepresident KK Raman said , "It's a good initiative from the government . It may lead to cement prices heading southwards . Cost of construction will come down if private playersfollowsuit ."
Though TANCEM has an installed capacity of about 9 lakh tonnes per annum, one of its kilns at Alangulam in Virudhunagar district is shut down and its effective production is only 7 lakh tonnes as of now. The supply would be routed through about 200-odd active stockists of TANCEM in the Tamil Nadu and Kerala.
