Question : PRODUCTION OF CEMENT

(a) the estimated annual production of cement in the country;

(b) whether the above quantity is sufficient for the country;

(c) if not, whether the shortage of cement had adversely affected the prices of cement;

(d) if so, the steps being taken to meet the shortage and to arrest the rise in prices of cement;

(e) whether the State Governments including Karnataka have requested the Government to allow import of cement; and

(f) if so, the quantum of cement likely to be imported and from which country?

MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (DR. RAMAN SINGH)

(a) The cement production during the first 11 months of the current year, i.e. April-2000-February, 2001 was 84.24 million tonnes (Provisional). The cement production during the corresponding period of last year was 84.65 million tonnes. The estimated production for the current year is 92 million tonnes.

(b): The cement industry is demand driven and has adequate capacity to meet additional demands.

(c) No, Sir. There is no shortage of cement and market forces determine the price of cement.

(d) The prices are being closely monitored. Meetings have been held with cement manufacturers in this regard and it has been reported that the price rise has been arrested and a marginal decline has occurred in some places. Government have also announced reduction of import duty on cement from 35% to 25% and this is likely to have stabilising effect on prices.

(e)&(f): Yes, Sir. State Governments of Maharashtra and Tamil Nadu have requested the Government to liberalise imports. As the Cement is OGL, the above State Governments and others are free to import cement.