The Hindu : Andhra Pradesh / Hyderabad News : State to rein in cement units

Online edition of India's National Newspaper
Friday, Apr 25, 2008
ePaper | Mobile/PDA Version

Andhra Pradesh

Andhra Pradesh - Hyderabad

State to rein in cement units

Special Correspondent

Seeks more powers from Centre

HYDERABAD: The State Government has decided to crack down on cement companies that do not bring down the price and announced a slew of measures to make them fall in line.

It has urged the Centre to delegate powers, including promulgation of an ordinance, to restrict movement of cement to other States from Andhra Pradesh in order to control the open market price.

The Government also resolved to cancel the mining leases of cement companies if it was found that they had not begun any activity even two years after taking the lease rights. The meeting took a serious view of the failure of the Mines Department to review the mining activity.

Finance Minister K. Rosaiah said the Government would also insist that the cement companies clear “at any cost” the backlog in supply of cement for the Indiramma housing programme. He recalled that these companies had agreed sometime ago to apportion 18.5 per cent of their production for Indiramma at a rate of Rs. 140-159 but per bag but fulfilled their commitment only to the extent of 5-10 per cent.

He claimed that following the tough measures taken by the Government during the past one week, cement prices in the open market had come down from Rs. 231 to Rs. 210 a bag. At the same time, he said the Government would hold talks with managements of cement companies on Friday in view of the feeling among them that the Government had made no attempt to know their mind though they were willing to co-operate.

These issues were discussed at a meeting here on Thursday between the Group of Ministers (GoM) constituted to bring down cement prices and Chief Minister Y. S. Rajasekhara Reddy.

Later, the Chief Minister wrote letters to the Prime Minister and the Union Industries Minister pleading for transfer of powers to the AP Government too in respect of cement as done in case of some other States.

Dr. Reddy requested the Prime Minister to refer the issue of cement and steel prices to the Monopolies and Restrictive Trade Practices Commission (MRTPC) for a study and possible action against the manufacturers for unfairly fixing their prices as a monopoly practice.

Briefing reporters later, Mr. Rosaiah, who heads the GoM, said once the Centre delegated these powers, the State Government would announce a cement policy of its own, restricting cement movement so that its price is brought down to Rs. 200 for a 50 kg bag.

Printer friendly page
Send this article to Friends by E-Mail

Andhra Pradesh