The Hindu : Tamil Nadu News : Cement subsidy offer for economically weaker sections

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Thursday, Jan 10, 2008
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Tamil Nadu

Tamil Nadu

Cement subsidy offer for economically weaker sections

Special Correspondent

A maximum of 400 bags for each consumer
Cements Corporation to get a bag at Rs. 220

Chennai: Seven private cement manufacturers have come forward to sell cement at Rs. 200 a bag to people belonging to economically backward sections and the lower middle class.

They have proposed that a maximum of 400 bags (50 kg a bag) will be supplied to each consumer on the basis of permits to be issued by district officials concerned. Their calculation is that these sections of the society will construct dwelling units in the range of 500-1,000 sq. ft. As per a construction thumb rule, 20 kg of cement is needed for building one sq. ft. Such consumers will have to make their payment in advance by demand drafts. In each purchase, the minimum quantity should be 50 bags. The cement manufacturers have expressed their willingness to offer 20 lakh bags of blended cement every month in all districts. Each company will adopt districts close to their area of production for public distribution. “Cement will be delivered at the doorstep of such consumers [the economically-backward sections and the lower middle class] against permits to be issued by appropriate officials in every district. Producers located outside Tamil Nadu supplying cement to Tamil Nadu will also participate in this scheme,” representatives of the seven companies said in their letter to Chief Minister M. Karunanidhi.

A delegation of the manufacturers, including N. Srinivasan (India Cements), P.R. Ramasubrahmaneya Rajha (Madras Cements) and M.A.M.R. Muthiah (Chettinad Cement Corporation), called on Mr. Karunanidhi at the Secretariat on Wednesday and presented the proposal. Other companies are Grasim Industries, Ultratech Cement, Dalmia Cement (Bharat) and the ACC.

On Monday, Mr. Srinivasan met the Chief Minister and assured him that he would consult other manufacturers on the issue of reducing the price of cement.

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