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FOREWORD
I am delighted to present the 53rd Annual Report of CMA for the year 2013-14 which is in your hands
now. The Report is a comprehensive document and covers in detail, various aspects of performance of
the industry with particular reference to the year under report.
Year 2014 has been a very significant year for the cement industry inasmuch as it marks completion of
100 years of the journey of the Cement Industry through all its vicissitudes in the country to reach the
level of being the Second largest cement producer globally.
For the last two consecutive years, the overall economic growth registered a considerable reduction and
stood below 5%. This is also the lowest ever in the last decade after witnessing a growth of 6.5% in
2011-12 and 8.4% in 2010-11. This has created an environment of gloom among the industry as well as
the common man in the country.
Consequently, the cement industry, which has a direct co-relationship of 1:1.2 with the GDP, too
experienced demand recession. The growth of the cement industry during the year under review was
less than 3%, as per the official figures released by the Office of the Economic Adviser, DIPP. This has
sharply lowered the capacity utilization of the industry to 70% now from 94% in 2007-08. This saddled
the industry with an idle capacity of over 100 Mn.t. valuing a mammoth dead investment of over Rs.
70,000 crores at today’s cost.
Apart from slowdown in the economy and deceleration in the construction activities, the cement
production also suffered on account of dwindling availability of coal, power and Rail wagons, in
addition to high taxation. These aspects are now briefly touched upon in the following paras.
Coal is one of the major raw materials needed by the Industry both in the manufacturing of cement and
also for generating power. Over the last couple of years, the Cement Industry’s need has not been duly
addressed by the Govt. insofar as meeting its coal requirement is concerned due to diversion of Coal to
the Power Sector. From a fulfilment level of 69% of its coal requirement in 2003, the satisfaction level
for the Cement Industry has touched at 31% during the year under review. Since new linkages are not
being given to the existing units as well as to the new plants, cement industry perforce has to resort to
either open market purchase or imported coal at a much higher costs which also adds significantly to the
cost of production. Additional linkage to Cement Industry will bring down the cost of production.
ii
Coal sector reforms is one of the top items on the agenda of the New Govt. It has taken steps to
formulate clear and transparent policies on allocation of critical natural resources such as coal, minerals
and spectrum. It is to be hoped that while allocating the Coal resources in country, equitable
consideration is also accorded to non-power sectors, including Cement.
Another bottleneck pertains to Rail logistics. The cement industry continued to struggle hard in
transportation of cement, clinker, coal. fly ash, etc. by rail. The Rail share as a percentage of total
despatches of cement continued to remain at 34% of the total despatches of cement as opposed to 57% a
couple of years back. The major reasons for this decline are : (a) Inadequate and erratic supply of
wagons for cement, particularly during peak period. This badly affects the dispatch plans of the industry
(b) Acute crisis of wagons for movement of coal and pet-coke from Ports as also from SECL, which
have severely impacted the cement production (c) discriminatory freight hike – around 47% since April
2011(e) abnormally high penalty, demurrage and wharfage charges (f) significant increase in carrying
capacity of wagons from 2200 t to 4000 t in last seven years, without any corresponding increase in free
time for loading/ unloading. Cement industry expects Railways to take speedy actions on the above
concerns to firm up the Rail share for cement.
Yet another major constraint for the cement industry is Power. To supplement its energy needs, the
Cement Industry has been making concerted efforts over the last few years to enhance the usage of
Alternate Fuels in place of fossil fuel-coal and Waste Heat Recovery (WHR) through Co-generation
after making huge investments in process technology, but the success rate is not encouraging due to
certain financial and also policy -related constraints being encountered by the industry. The usage of
AFR needs to be encouraged and incentivized and the WHR technology may be granted ‘Renewable
Energy’ status for issuance of RE certificates.
The extant policy regarding supply of fly ash has been a matter of concern for the cement industry.
Power plants which were supplying fly ash to the cement industry free-of-cost as per the Govt.
notification have started charging considerably for fly ash from 2009. This has enhanced significantly
the production cost of Portland pozzolana cement. Cement industry has helped the power houses
considerably in saving their regular expenditure incurred on the disposal of the fly ash and also
investments having to be made on procuring land for its dumping. This has been made possible only
after setting up cement grinding units nearer the power houses entailing huge investments. Cement
industry deserves to be provided fly ash free-of-cost on the principle of ‘Polluter to Pay’ basis, which
has been adopted the world-over, in the overall interest of the Nation and also from protecting the
environment and health-hazard concerns.
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High taxation is yet another major concern of the industry. Cement industry is taxed at 60% of the ex-
factory price, which is more than even the luxury items. Similarly, VAT Charged on Steel, a
construction material like cement, is only 4% whereas it is 12.5% on Cement/clinker which varies up to
15% in some states. There is an urgent need for at least 25% reduction in overall taxation from the
current level for helping the Core Sector Industry to contribute its best to the economy.
I am happy to mention that CMA continued its efforts to promote techno- economically superior cement
concrete roads, through meetings and vigorous follow-ups with a large number of Government officials
and concerned authorities both in the Centre and the States.
Realising the various inherent advantages and importance of cement roads for the rapid growth of the
economy, the new NDA Govt., under the able and dynamic leadership of Prime Minister, Shri Narendra
Modi has announced preference for the Cement Concrete Roads as default option in case of National
Highway Projects. It has also taken a number of bold policy measures to revive the sagging economy
and also drawn a Roadmap for the development of Expressways, Dedicated Freight Corridors, Rural and
Urban Roads, Airports, Port Connectivity, Development of 100 Smart Cities, Housing for all by 2022,
etc.
The results of the Govt.’s initiatives have already started reflecting in the growth of the Cement Industry
to 7.9 % in the first three quarters of the current fiscal. To gain the momentum further in the growth rate,
Govt. must ensure fulfilment of its promises in respect of infrastructure development and also housing
projects by their timely clearances and execution, in addition to smooth and regular and flow of funds.
It is not out of place to mention that for the ambitious infrastructure programme of the Govt, there is
need to have in place short, medium and long-term projections of cement demand to enable the industry
to gear itself appropriately. However, after the June 2012 Order of the Competition Commission of
India, there has not been any detailed compilation of data, which was being effected by CMA on
regular basis earlier. There is, therefore, need to strengthen the process of effective data collection base
in the interest of both the Cement Industry and Govt.
Deptt. of Industrial Policy and Promotion, Ministry of Commerce and Industry, has been highly
supportive of our Industry for which, I am grateful to Secretary, Joint Secretary, Director and Under
Secretary. I am equally indebted to Secretary (Coal), Addl. Secretary (Coal) and Joint Secretary,
Ministry of Coal; Chairman, Railway Board, Member Traffic, Advisor (T), Executive Director Traffic
Transportation (S), Executive Director Traffic Transportation (R), Ministry of Railways;
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Secretary, MORTH, Chairman, NHAI, Secretary, Ministry of Environment and Forests; and Chairman,
Central Pollution Control Board, for their esteemed counsel, continued assistance and steady support. I
also thank the Senior Officers of various Ministries, Coal India, Singareni, CAPEXIL for their
cooperation.
I also wish to thank senior Members of the Managing Committee and various other CMA Committees
for their valuable advice whenever needed. But for their unstinted help and cooperation, it would not
have been easy for your Association to discharge its responsibilities as efficiently.
The officers and staff of CMA under the supervision and guidance of Secretary General, Shri N.A.
Viswanathan have turned in yet another year of dedicated and committed service in the interest of the
Association and its mission. I express my sincere appreciation and wish to record my gratitude to each
of them for their contribution through these trying times. I am sure, they will continue to provide such
service with zeal in future as well.
New Delhi (O.P. Puranmalka)
February 2015 President
53rd Annual Report
1
CEMENT MANUFACTURERS’ ASSOCIATION
53rd ANNUAL REPORT 2013-14 (Under Rule 49 – Rules & Regulations of CMA)
The Managing Committee is happy to
present its 53rd
Annual Report for the year
2013-14.
THE YEAR AT A GLANCE
Economy
After achieving unprecedented growth of
over 9% for three successive years
between 2005-06 and 2007-08 and
recovering swiftly from the global
financial crisis of 2008-09, the Indian
economy has been going through
challenging times. Gross Domestic
Product (GDP) growth drifted down
continuously from 8.4% in 2010-11 to
6.5% in 2011-12 and to lower than 5% for
two consecutive years, i.e. 2012-13 and
2013-14. GDP growth in the year 2013-14
was 4.7% as against 4.5% in the previous
year. The two successive years of sub-5%
growth was witnessed for the first time in
25 years. A combination of factors which
has contributed to such a low growth
include persistent uncertainty in the
global outlook, caused by the crisis in the
Euro area and general slowdown in the
global economy, compounded by
domestic structural constraints and
inflationary pressures and cyclical
slowdown in both global and domestic
economies.
The slow growth of the economy had
impacted various segments of the
Industry. As per the Central Statistics
Office (CSO) data, industrial growth
dropped to 0.4% in 2013-14 as against 1%
in 2012-13. The industrial revival may be
longer and needs stronger initiatives of all
stakeholders to emulate the peak growth
achieved in the recent past.
The last two years were particularly
disappointing for the manufacturing
sector, with growth averaging 0.2% per
annum. The growth in manufacturing
sector during 2013-14 was negative
(-0.7%) as compared to 1.1% in 2012-13.
The growth on the Agricultural Sector was
4.7% in 2013-14 as against 1.4% in
2012-13.
The Construction Sector grew by 1.6% in
2013-14 as against 1.1% in 2012-13.
The Cement Sector plays a vital role in the
economic growth of the country and its
journey towards inclusive growth. Cement
is an essential item to the Construction
Sector and to all infrastructural projects.
The Construction Sector alone contributes
to over 7% of the country’s GDP.
There is change of Govt. in the Centre, for
the first time after decades, which an
overwhelming majority has mandated.
With this change, the Cement Industry
hopes that the economy will revive, as the
New Govt. has already announced bold
steps and measures. Further, there has
been optimism in the economy after the
2
10-point plan charted out by the Prime
Minister, which focuses on investments in
infrastructure, time-bound action and
improved coordination between the
Centre and States to ensure smooth
implementation of Government policies.
With these measures, the growth is surely
expected to pick up from the current year
onwards.
Cement Industry’s Performance
The Cement Industry witnessed slowdown
in cement demand in the year 2013-14
due to fall in construction activity,
prolonged monsoon, with floods and
cyclones that hit some parts of the
country, financial constraints and
increasing rate of interest, and virtual
drop in Government spending which had
led to slowdown in realty and
infrastructure sectors.
During the year 2013-14, cement
production, as per the Office of the
Economic Advisor, Department of
Industrial Policy & Promotion (DIPP), was
255.57 Mn.t. as against 248.23 Mn.t. in
the previous fiscal, registering a growth of
2.96% as against 7.7% in the previous year
2012-13. New capacities in the pipeline
materialized and lack of demand resulted
in further decline of capacity utilization of
the Cement Industry. Cement is one of
the core industries and an important
contributor in infrastructure growth.
Cement has a direct co-relation of 1:1.2
with the GDP. But, it has witnessed lower
growth than GDP (<3% as against GDP
growth of sub-5%).
Year Cement Prod.
(Mn.t.)
% Growth
2012-13 248.23 7.70
2013-14 255.57 2.96
In view of the downward revision of the
previous year’s production figures from
251.12 Mn.t. to 248.23 Mn.t. by the Govt.,
the percentage growth has gone down by
1.25 points from 8.95% to 7.7%. As per
the figures collected by CMA from
different sources, the growth in cement
production in previous year was 1.48%,
thus showing a high variance in the
growth rates in two sets of data.
Pan India cement production and capacity
are reflected in Annexure-I.
As reported last year, the flow of
statistical feedback to CMA practically
dried up consequent upon the Order
dated 20th
June 2012 of Competition
Commission of India (CCI) in Case No.
29/2010 “Builders Association of India Vs.
CMA & Ors.”. In the absence of inflow of
statistical data, CMA could not compile
and incorporate the performance of
Cement Industry in the Annual Report.
Inadequate and incorrect data on the
Cement Industry has been hampering
planning for Cement Industry and it will
continue to suffer unless a strong
database is created, particularly when
there is a wide mismatch of demand and
capacity in the Cement Industry. There is,
therefore, need to strengthen the system
of collection and compilation of the
database on Cement Industry since a
reliable and authentic database forms the
very basis of future planning of the
Cement Industry.
53rd Annual Report
3
Cement Industry’s Outlook
(2014-15)
As per the Economic Survey 2013-14, GDP
growth is expected to be 5.4% – 5.9% in
2014-15, and will increase gradually
thereafter.
The capacity utilization in the Cement
Industry was 94% in 2007-08 which has
been declining since then to around 70%
mainly due to mismatch between the
supply and cement demand. This has
created a situation of excess
idle capacity of over 100 Mn.t.,
a dead investment to the
magnitude of Rs.62,500 crores
in cost. The Cement Industry
is optimistic that the thrust
and importance given in the
Union Budget 2014-15 for the
development of National
Highways, Rural and Urban
Roads, Affordable Housing,
Port Connectivity,
Development of 100 Smart
Cities, etc. should help in
boosting the muted growth of
the Cement Industry.
The Govt. has finally realized
the value of concrete roads
over bitumen. Shri Nitin
Gadkari, Hon’ble Minister of
Road Transport, Highways and
Shipping, has unequivocally
expressed his preference for
cement concrete over bitumen
for road construction.
These measures are likely to generate
considerable cement demand, which is
much needed to bring back Indian
Cement Industry on the growth
trajectory.
MEETINGS OF THE MANAGING
COMMITTEE
Three meetings of the Managing
Committee of CMA were held during
2013–14 to review and deliberate on the
issues relating to the problems and
growth of the Cement Industry.
CMA Managing Committee Meeting in progress
CMA Managing Committee Meeting - 9th January 2014
Seated on Dais (L-R) S/Shri B.L. Jain, Past President, CMA; O.P. Puranmalka,
President, CMA; M.A.M.R. Muthiah, Past President, CMA;
N.A. Viswanathan, Secretary General, CMA; Dr. S. Chouksey, Vice President,
CMA and Mrs. Vinita Singhania, Past President, CMA
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CMA COMMITTEES
Shri O.P. Puranmalka, President, CMA has
re-constituted the following CMA
Committees for the year 2013-14 to
render assistance to the Management of
the Association to address various
emerging issues and problems, having
bearing on the Cement Industry.
� CMA Committee on Coal Matters.
� CMA Technical Committee.
� Energy Task Force.
� Environmental Task Force.
� CMA Finance/ Legal Matters Committee.
� CMA Committee on Railway Matters.
Names of the Chairmen/Co-chairmen of
the above Committees are indicated in
Annexure-II.
MEETING WITH HON’BLE MINISTER OF
STATE FOR COMMERCE AND INDUSTRY
Shri E.M. Sudersana Natchiappan, the
then Hon'ble Minister of State for
Commerce & Industry, called a meeting
with the representatives of the Cement
Industry on 4th
September, 2013 to
understand the major concerns of the
Cement Industry impacting its growth.
Shri N.A. Viswanathan, Secretary General,
CMA brought to the notice of Hon'ble
Minister the major concerns affecting the
Cement Industry, notably Current poor
utilization of cement capacity; Inadequate
supply of coal; Delay in obtaining
clearances from Ministry of Environment,
Forests & Climate Change (MoEF&CC),
Ministry of Mines, etc. thereby
discouraging fresh investments in this
core sector industry; High taxation
burden on this industry; Steep hike on the
railway freight, Inability of CMA to collect
and furnish data to the Ministry, in the
wake of CCI’s Order dated 20th
June 2012,
etc.
The Minister, who gave a patient hearing
to the representatives of the Cement
Industry was positive in the discussions.
CEMENT INDUSTRY’S PRE-BUDGET
MEMORANDUM – 2014-15
CMA, on behalf of the Member Cement
Companies submitted its Pre-Budget
Memorandum for the year 2014-15 on
2nd
June 2014, to the Hon’ble Finance
Minister, Shri Arun Jaitley, Government of
India. Conveying its hearty
congratulations to the Finance Minister
and the newly formed Government under
the dynamic leadership of Shri Narendra
Modi, Hon’ble Prime Minister, the
Cement Industry expressed confidence
that the new dispensation with its focus
on infrastructure development and job
creation would initiate bold and decisive
Policy Reforms to promote economic
growth, restore the much-needed
investor confidence, attract higher
53rd Annual Report
5
investments and generate employment
opportunities, especially in the
manufacturing sector.
The important facts and suggestions of
CMA’s Pre-Budget Memorandum are
highlighted hereunder:
Highly Taxed Industry: Cement is as
much an essential item for construction
activities as steel but both products are
treated differently when it comes to
taxation. Cement, a high volume low
value product, is highly taxed even more
than the luxury items at 60% of ex-factory
price. It was mentioned that average tax
on cement in the Asia Pacific Region is just
11.4% with the highest levy of 20% being
in Sri Lanka. CMA urged that the taxation
burden on the cement needs to be
lowered by at least 20% to 25% from the
present level of 60% ex-factory price in
the overall interest and growth of both
industry and economy, which are
currently passing through a very bad
phase.
Excise Duty Rationalization and
Simplification: Excise duty on Cement is
levied @12% + Rs.120 per MT. Duty rates
are one of the highest and next only to
luxury goods like cars. Other core
industries such as coal, steel attract duty
at around 5%. Further, the excise duty
structure for both cement as well as
cement clinker has become quite
complicated in the last few years.
CMA urged Government for
rationalization and reduction of the Excise
Duty from the current 12% to 6-8%
without addition of Specific Duty to bring
it at par with other core and
infrastructure industries and simplifying
the duty structure either as specific rate
per MT or on advalorem basis and
without relating to MRP etc.
Increase of abatement percentage: Excise
duty on Cement is levied on transaction
value. As per Section 4 of Central Excise
Act, Maximum Retail Price (MRP) is
considered as transaction value if printed
on bags. Since MRP consist of excise duty,
VAT, freight component, post sales
expenses and discount etc. MRP works
out very high as compared to transaction
value. Moreover, in the Cement Industry,
billing is done at a higher price and
subsequently, credit note is issued for all
types of discounts/incentives viz. Rate
difference, Cash discounts, and annual
incentives etc., which ultimately result in
reduction of net realization of the
company whereas excise duty is paid at a
higher value which is 70% of MRP. CMA,
therefore, suggested that existing
abatement of 30% may be increased to
55%, as was also recommended by
NCAER.
6
Levy of Customs Duty on Cement
Imports: Import of cement into India is
freely allowed without payment of basic
customs duty whereas all the major
inputs for manufacturing cement such as
Limestone, Gypsum, Pet coke, Packing
Bags etc. attract customs duty. In this
situation duty-free imports cause further
undue hardship to the Cement Industry
apart from the security concerns inherent
in the import of cement from Pakistan.
CMA requested that to provide a level-
playing field, basic customs duty be levied
on cement imports into India.
Alternatively, Import duties on goods
required for manufacture of cement be
abolished.
Customs Duty on Pet Coke & Other
Inputs: Cement Industry has been subject
to perennial shortages of coal, the main
fuel. Approximately 35% of linked coal is
received by the member companies
against their total fuel requirement for
kiln under the Coal Linkage Scheme. This
adversely impacts the Cement Industry.
The Cement Industry has been resorting
to increased usage of Pet coke as fuel due
to reducing availability of coal. The
indigenous availability of Pet coke being
short, it is imported. Pet coke is
expensive and the situation is further
compounded and skewed by the fact that
the import duty on Pet coke is 2.5%,
whereas on final product ‘Cement’ there
is no Basic Customs Duty, leading to an
anomalous situation of “Import Duty on
inputs being higher than a finished
product”. CMA suggested that import
duty on pet coke, and other input
materials used in production of cement
be scrapped. This would remove the
aberration in the structure of duties
existing in cement imports vis-à-vis its
inputs.
Abolition of Import Duty on Tyre Chips:
The Cement Industry has been developing
usage of alternative energy sources like
tyre chips etc. However, tyre chips are
presently put under the “Negative list” of
imports, whereby the same cannot be
imported into India. In order to enhance
the usage of cut-tyres as fuel in the
manufacturing of cement, CMA suggested
that tyre chips be allowed to be imported
by removing it from the “Negative list”
and import duty on the same be reduced
to zero.
Treatment of Waste Heat Recovery as
Renewable Energy Source: Cement
Industry has been putting up Waste Heat
Recovery plants with substantial capital
investments so as to derive more energy
from the same energy resource. In a way,
this is akin to Green Energy. To help the
industry and incentivize its endeavour to
produce more such environment-friendly
53rd Annual Report
7
energy, CMA requested that such energy
generation be treated as Renewable
Energy Source.
Amend First Proviso to Rule 4A of the
Service Tax Rules 1994 to include Indian
Railways: Government had withdrawn
the Service Tax exemption on Railway
Freight w.e.f. 1.10.2012 and the Service
Tax is being charged by the Railways on
railway receipts. Since different Railway
Zones are issuing certificates in different
formats and in most cases without any
serial number, credit is being disallowed
by Central Excise officers to the cement
companies. This credit amount run into a
few hundred crores of Rupees. To
overcome this problem, CMA suggested
amending the First Proviso to Rule 4A of
the Service Tax Rules, which entitles
Cenvat Credit on bank
certificates/account statements without
serial numbers, to include certificates
issued by Indian Railways.
Your Managing Committee is happy to
report that this request of CMA has, since
been accepted by the Govt. vide their
Notification No.26/2014-Central Excise
(NT) dated 27th
August 2014.
Other Issues
The other issues, inter-alia, included
Classifying Cement as “Declared Goods;
Tax exemption to Certified Emission
Reduction (CER) credits under Clean
Development Mechanism; Exemption to
Cement Industry U/S 80-1A; Exemption to
Power Plants U/S 80-IA; Cenvat Credit on
Capital goods used outside factory for
handling of Raw Material in relation to
manufacture of final product; Re-
classifying Capital goods having useful life
of less than a year as Inputs; liability of
VAT as well as CST on inter-state
movement of material besides
suggestions regarding Direct Taxes; issues
relating to Tax Administration, policy
matters etc.
Union Budget 2014-15
Hon’ble Finance Minister, Shri Arun
Jaitley, presented the Union Budget
2014-15 in the Parliament on 10th
July
2014.
So far as Cement Industry is concerned,
while the Govt.’s announcements and
considerable funds allocation for the
various infrastructure development
projects in the country would revive the
cement demand, the imposition of Basic
Customs Duty (BCD) and Countervailing
Duty (CVD) on Coal and doubling the
Clean Energy Cess will further enhance
the financial burden of the Cement
Industry, which has already been passing
through a bad phase.
8
MAJOR HIGHLIGHTS OF UNION BUDGET 2014-15
CONCERNING THE CEMENT INDUSTRY
• Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5% basic
customs duty and 2% CVD to eliminate all assessment disputes and transaction costs
associated with testing of various parameters of coal.
• Clean Energy Cess increased from Rs.50 per tonne to Rs.100 per tonne, to finance Clean
Environment initiatives.
• Concessional basic customs duty of 5% extended to machinery and equipment required for
setting up of a project for solar energy production.
• Investment allowance at the rate of 15% to a manufacturing company that invests more than
Rs.25 crore in any year in new plant and machinery. The benefit to be available for three
years i.e. for investments up to 31.03.2017.
• 10 year tax holiday extended to the undertakings which begin generation, distribution and
transmission of power by 31.03.2017.
• Export duty on bauxite increased from 10% to 20%.
• Customs and Central Excise Acts to be amended to expedite the process of disposal of
appeals.
• A sum of Rs.4000 crores for National Housing Bank from the priority sector lending shortfall
with a view to increase the flow of cheaper credit for affordable housing to the urban
poor/EWS/LIG segment is provided.
• An investment of Rs.37,880 crores in NHAI for construction of 8500 kms NH and State Roads
proposed which includes Rs.3000 crores for the North East.
• Rs.1000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojana” for assured irrigation.
• Rs.14,389 crore provided for Pradhan Mantri Gram Sadak Yojana (PMGSY).
• Allocation for National Housing Bank increased to Rs.8000 crore to support Rural housing.
• A sum of Rs.7060 crore provided in the current fiscal for the project of developing
“100 Smart Cities”.
• Work on select Expressways in parallel to the development of the Industrial Corridors will be
initiated. For project preparation NHAI shall set aside a sum of Rs.500 crore.
• Perspective plan for the Bengaluru - Mumbai Economic Corridor (BMEC) and Vizag-Chennai
Corridor to be completed with the provision for 20 new Industrial Clusters.
• Master planning of 3 new Smart Cities in the Chennai-Bengaluru Industrial Corridor region,
viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be
completed.
• Scheme for development of new Airports in Tier-I and Tier-II Cities to be launched.
• Slum development to be included in the list of Corporate Social Responsibility (CSR) activities
to encourage the private sector to contribute more.
• Rs.100 crore allocated for a new scheme “Ultra-Modern Super Critical Coal Based Thermal
Power Technology.”
53rd Annual Report
9
CMA AT PCA, WASHINGTON BOARD’S
MEET
Mr. Gregory M. Scott, President and Chief
Executive Officer of the Portland Cement
Association, Washington invited CMA’s
Vice President, Dr. S. Chouksey to speak
at PCA Spring Board Meeting on 29th
April, 2014 at The Willard, Washington,
DC.
Dr. Chouksey actively participated in their
Board’s meeting and also made a
Presentation on the ‘Challenges and
Opportunities’ being faced by the Indian
Cement Industry. He had intense
interaction with office bearers of PCA
regulating their ways of tackling the
problems being faced by their cement
plants particularly when confronted with
glut situation of cement a few decades
back.
Dr. Chouksey also responded to various
questions raised by their Board of
Directors on the Indian Cement Industry.
Dr. Chouksey’s presentation in the
meeting was received with appreciation
by the PCA Members.
INFRASTRUCTURE
All over the world, Cement is one of the
most important building materials for any
construction and is an essential
infrastructure input. The performance of
the Cement Industry itself depends
critically on regular and consistent supply
of Coal, Power and availability of Rail
transportation. The inputs from these
three sectors account for roughly 50% of
the cost of cement. Both the availability
and the cost of these inputs have a vital
bearing on the fortunes of the cement
players.
All these sectors are largely in Govt.
domain, and, historically Cement
companies have had virtually no control
on their cost and availability.
COAL
Coal is vital to the Cement Industry as it is
the primary fuel and accounts for 25-30%
of the total cost of cement production. It
takes about 170 kg of coal to produce one
tonne of clinker.
During the year 2013-14, CMA Committee
on Coal Matters held periodic meetings
and also interacted with various
Government Authorities on coal-related
issues. Also valued opinion and
suggestions were sought from the
Members on regular basis on specific
issues and problems as they arose before
firming up our Association’s views to take
up with the concerned authorities for
their resolution.
Revival of Standing Linkage Committee
(Long-Term) after 6 years
Ministry of Coal (MOC), after repeated
persuasion called Standing Linkage
Committee (Long Term) Meeting for
Power, Sponge Iron and Cement Sector to
review the status of existing Coal Linkage
and other related matters on 20th
December 2013, 21st
February 2014,
10
27th
June 2014, 11th
August 2014 and 3rd
December 2014 under the Chairmanship
of Additional Secretary, MOC. As per the
directives given in the first SLC (LT)
meeting, a Committee was constituted to
settle the long pending issue of signing of
Fuel Supply Agreements (FSAs) against
the linkages granted in the year 2007.
Background
For Cement Sector, 43 Letters of
Assurance (LoAs) were issued by the Coal
Companies. Out of these, 21 FSAs were
signed and Commitment Guarantee
forfeited in 2 LoAs cases. Of the balance
20 Cement Plants, 16 plants belong to our
Members, where milestones were verified
by the South Eastern Coalfields Limited
(SECL) and found deficient/not achieved
within LOA validity, Notices for
cancellation of LoAs and forfeiture of
Commitment Guarantee/ Additional
Commitment Guarantee have been issued
in the last financial year (2012-13).
The Review Committee constituted in
SECL recommended the following broad
principles for resolving the pending issues
and placed before the meeting of SLC (LT)
held on 27th
June 2014 under the
Chairmanship of Additional Secretary,
MOC, to take a view in the matter:
(a) Condonation of delay in respect of
achievement of milestones and / or
submission of documents/
clarifications in respect of milestones
already achieved and documents
already submitted till date.
(b) Grant of further 3 months’ time from
the date of issuance of letters to
respective LOA holders by SECL for
achievement of deficient milestones
and/or submission of fresh/
additional documents/ clarification as
being recommended.
(c) As coal is used for manufacture of
clinker, entitled coal quantities under
various LOAs will be worked out
considering total clinker capacity of
the plant (including pre-existing +
enhanced capacities). Based on this
capacity, the eligible quantity will be
at the rate of 17% of the clinker
capacity as normative quantity. Total
eligible quantity will then be 75% of
this normative quantity as per New
Coal Distribution Policy (NCDP). From
this total eligible quantity, the
quantity being already drawn under
FSA from SECL, if any, will be
subtracted to arrive at the balance
eligible quantity for supply under
fresh FSAs against these LOAs,
subject to the ceiling of approved
LOA quantities.
In case of variation in clinker
capacities as per different documents
submitted against various milestones
of an LOA, the lowest capacity will be
considered for computation of
entitled coal quantity. These
principles will apply uniformly to all
LOA holders, to which they have
agreed.
53rd Annual Report
11
(d) In cases, where the clinker capacity is
mentioned in Tonnes Per Day (TPD),
the annual capacity will be uniformly
calculated considering 330 working
days in a year as per industry norms
as indicated by DIPP.
(e) Manufacturing of clinker has distinct
pollution control norms. Most of the
LOA holders have furnished
Environment Clearance for clinker.
Environment Clearance for clinker
will be mandatory in all cases.
However, LOA holders may furnish
either Consent to Establish or
Consent to Operate mentioning
clinker capacity, which will be
acceptable for milestone purpose.
The papers/documents of each of the 20
cement plants were examined by SECL in
light of these broad principles and
decision on each individual case taken by
SECL. Relaxation or extension of time till
31.10.2014 for meeting procedural
formalities and the achievement of
milestones, wherever required, was given.
With this development, most of the FSAs
are already signed and remaining 3 FSAs
are expected to be signed after
submission of MoEF&CC document for
enhanced clinker capacity.
Supply of coal to Cement Plants with
tapering linkages
MOC notified the Guidelines/ Policy
relating to issuance of LOA/Allocation of
Coal on “tapering basis” to various
consumers of Power, Cement & Sponge
Iron, under reference No. 23011/39/2008-
CPD dated 26th
February 2010. These
Guidelines were applied prospectively and
in accordance with the terms and
conditions mentioned in these Guidelines.
Cement Projects with Captive Mines have
been given Tapering Linkages with the
stipulation that on the coal supply after
the normative date of production,
additional 40% of the base price shall be
payable as “Add-on-Price” for all coals of
Gross Calorific Value (GCV) of 5800
Kcal/Kg and below as against 20% for the
Power Plants which was revised with
effect from 16.12.2013. The coal supplies
will be for a maximum period of three
years in a tapered manner corresponding
to 75% in the first year, 50% in the second
year and 25% in the third year from the
date of targeted normative production.
Cement Companies which have been
allocated Captive Coal Blocks could not
start coal production due to a variety of
reasons beyond their control, such as,
delays/non-clearance in getting MoEF&CC
clearance; delays in demarcation of the
boundaries by the Central Mine Planning
and Design Institute Limited (CMPDIL);
enquiry initiated against the other
allocatee of the same Coal block, delay in
granting land and other clearances etc. by
State Govts.
In case of Thermal Power Plants with
tapering linkages coal supply were
extended by 3 years or till such time the
12
production actually starts from the coal
blocks, whichever was earlier, after the
normative date of production and
directions to that effect were given to the
Chairman & Managing Director, Coal India
Limited (CIL) by MOC on 16th
January
2014.
In order to maintain parity with the relief
granted to the Power Plants for supply of
coal with tapering linkages, CMA took up
the issue with Secretary (DIPP), Ministry
of Commerce & Industry, Secretary, MOC
& Cabinet Secretary for extending the
“Normative date of commencement of
Production” to the Cement Projects also
for continued coal supplies on long term
linkages. CMA’s suggestions in this regard
have been accepted in the Fifth Meeting
of the “Inter-Ministerial Committee” held
on 11th
June 2014. This will help in
ensuring supply of coal to Sponge Iron
Plants and Cement Plants, which have not
been granted any fresh coal linkages since
2007. The CPPs have been excluded from
this arrangement.
Consequent on the de-allocation of the
coal blocks by the Hon’ble Supreme Court
of India in September 2014, CMA has
urged the Government to scrap the
Tapering Coal Linkage Policy 2010 and
requested to release the difference
between the normal and tapered quantity
of coal to the affected member units from
retrospective effect.
Based on the presentation by the CMA
and other Stakeholders, the Standing
Linkage Committee (Long-Term) in its
meeting held on 3rd
December 2014
decided that coal be supplied by road to
the End-use-plants in the following order
in case of de-allocated/cancelled coal
blocks:
(a) End-use-plants which were already
having linkages/LOAs but whose
existing linkages were converted to
tapering linkage consequent upon
allocation of coal block.
(b) End-use-plants which were granted
tapering linkages in view of coal
blocks having been allocated to them.
Third Party Joint Sampling Facility for
Cement Industry
The mechanism of Third Party Sampling of
coal has been put in place with effect
from 1st
October 2013 for the power
utilities and for the other consumers
having Annual Contracted Quantity (ACQ)
more than 4 lakh tonnes. CIL has even
modified its FSAs to allow Third Party to
collect samples at the delivery point for
determining the quality of coal. The
samples of coal will be collected in the
presence of representatives of the seller
and the purchaser.
Member Cement Companies have been
consistently expressing serious concern
about the poor quality of coal being
supplied by the coal companies (CIL as
53rd Annual Report
13
also by Singareni Colliery Co. Ltd.) and the
extensive variation in the declared GCV
and the actual GCV measured at the
cement plant as also the sub-standard
quality of coal.
CMA has, therefore, requested the
authorities to extend the proposed facility
of engagement of independent third Party
Sampling Agency for sampling and
analysis of coal for cement sector
consumers as well, subject to their option
for such facility, without any embargo on
the minimum quantity of 4 lakh tonnes.
Coal Blocks for Cement Industry through
auction by competitive bidding for
specified end uses
CMA and the Cement Industry had taken
up with the MOC, DIPP, Ministry of
Commerce and Industry, regularly, for
specifically setting aside Coal blocks for
allocation to Cement Industry. MOC vide
O.M. No. 13016/26/2004-CA-I (Pt.)-CA- III
dated 29th
January 2014, notified
Allocation of Area containing coal through
auction by competitive bidding (Rule 3)
under “Auction by Competitive Bidding of
Coal Mines Rules, 2012”, wherein,
information about capacity of the End-
Use plant along with Capital Investment
required was sought in a format from the
Cement Companies through DIPP,
Ministry of Commerce & Industry.
MOC for the first time set three Coal
Blocks for auction by competitive bidding
for specified end uses, two coal blocks in
Jharkhand, Jhirki & Jhirki (West),
Tokisud-II and one in West Bengal, Andal
Babuisol, which were to be auctioned to
the Steel, Sponge iron and Cement
companies. These three coal blocks have
reserves (including proved, indicated and
inferred) of about 499.4 Mn.t.
Tokisud-II coal block, earmarked for
Cement sector and situated in the South
Karanpura coalfield of Jharkhand has
127.692 Mn.t. of net proved geological
coal reserves. However, the assessed
Mineable/Extractable reserves are only
35.25 Mn.t. as per the information
obtained from CMPDIL. The average coal
quality range indicated is 4901-5200, GCV
per K.cal/per kilogram or Useful Heat
Value (UHV) between 3360-4200 UHV
K.Cal/per kg. or equivalent to erstwhile
“E” grade coal.
The Request for Proposal Documents
(RFP) for the coal block was available with
effect from 26.2.2014 upon payment of
Rs.2,00,000/- and bidding closed on 25th
June 2014.
However, the first-ever auction of captive
coal mining assets turned out to be a
failure. The Coal Ministry did not receive
any bid for two of the three mines
auctioned to steel and cement companies
though over 40 firms purchased bid
documents in March, 2014. Only two
sponge iron companies had submitted
bids for the small Andal Babuisol asset.
The underground reserve can produce
about 0.70 Mn.t. of coal annually for 25
years.
14
All the blocks have land-related issues.
The bidders were expected to make an
up-front payment of Rs. 35-45 crore, over
and above the production sharing
contract. MOC’s decision that the blocks
should be auctioned only after securing
the necessary environmental and land-
related clearances may see the auction
process put on hold as the process of
granting clearances take months together
and sometimes even years.
The Government is now overhauling coal
blocks bidding policy to attract
investments as the pilot set of auctioned
mines could not find any takers.
De-allocation of Captive Coal Blocks
The Hon’ble Supreme Court of India, in its
Judgement dated 25.08.2014 and Order
dated 24.09.2014 passed in Writ Petition
(CRL No. 120 of 2012) declared allocation
of 218 Coal Blocks as arbitrary & illegal.
The Hon’ble Supreme Court quashed the
allocation of 204 Coal Blocks
barring 14 allocated to Ultra
Mega Power Projects and blocks
in operation of NTPC and SAIL.
Out of these Coal Blocks,
seventeen Coal Blocks relate to
the Cement Industry, and 12 to
our Member Cement
Companies wherein huge
investments have been made by
the Industry in the End-Use
plants and the Coal Blocks.
CMA had taken up strongly with the
Government for the resolution of the
consequences arising due to de-allocation
of these Coal Blocks.
The Government has now decided to sell
101 coal blocks by the end of March 31,
2015, while the remaining 103 blocks will
be auctioned in the Fiscal Year 2015-16.
Of the 101 blocks to be auctioned before
Fiscal Year 2014-15, 65 blocks would be
auctioned while 36 blocks would be
directly allotted to the State-owned
companies - 63 to power sector and rest
to non-power sectors.
Fuel Consumption and Coal Receipt against
FSA/Linkage
Coal receipt against FSA/Linkage by
Member Units of CMA was 9.22 Mn.t. in
2013-14 as against 10.38 Mn.t. in
2012-13. Month-wise coal receipts for the
years 2009-10 to 2013-14 are given in
Annexure-III.
53rd Annual Report
15
The total fuel procurement by Member
units was 29.93 Mn.t. in 2013-14 as
against 29.82 Mn.t. in 2012-13. While
the total fuel consumption by Member
units, during the year 2013-14 was 28.85
Mn.t. as against 27.37 Mn.t in 2012-13.
E-Auction/Open Market Procurement of
Coal
Coal distribution through E-Auction was
re-introduced in the New Coal
Distribution Policy in 2007 mainly to
provide access to companies that do not
have regular sources of supply. Most of
the coal through E-Auction is transported
through road network. In a recent order
by MOC, to boost supplies to the Power
Sector and to sign FSAs with power
companies and not to increase supplies to
other sectors, it has directed curtailing
E-Auction sales by 50% to
accommodate power producers.
CMA has requested the Government to
revisit its directive of reducing the
quantity of coal offered through E-Auction
route by 50% and to regulate
registration/participation of the Traders,
Power Utilities and Independent Power
Producers. Pending decision, Power
Utilities, IPPs and Coal Traders may be
restrained from participating in the Spot
and forward E-Auction.
The Cement Industry, because of shortage
of coal, is required to buy considerable
quantities of coal from Open Market/E-
Auction. A total of 3.92 Mn.t. of E-
Auction/Open Market Coal was purchased
during 2013-14 as against 3.93 Mn.t.
during 2012-13.
The percentage increase of
E-Auction bidding price over notified coal
price from CIL sources with respect to the
Spot E-Auction was 38% and Forward
E-Auction was 40% during the year under
review, as against 50% and 26%
respectively during the financial year
2012-13. The decreasing trend in the Spot
E-Auction price is due to increase in the
Notified Price and decline in the imported
coal price. Although there is increase in
the Forward E-Auction price but its
quantity is only 6% of the total quantity
allocated through E-Auction.
Details of year-wise procurement and
consumption of fuel, including Captive
Power Plants, are given in Annexure-IV.
It will be seen therefrom that during the
year 2013-14, linked coal share dropped
to 31% of the total receipt as against 69%
in 2002-03.
16
Coal Imports
The coal imported by Member
units was 9.08 Mn.t. during
2013-14 as against 9.27 Mn.t.
during 2012-13.
Pet Coke
During the year under review, the
Cement Industry consumed 5.96
Mn.t. of pet coke as against 5.18
Mn.t. during 2012-13.
Lignite
A quantity of about 1.11 Mn.t. of
Lignite was used in the financial year
2013-14 as fuel mainly in the cement
plants of Southern and Western Regions
as against 0.71 Mn.t. during 2012-13.
Other Fuels
Other alternative fuels like
husk/municipal wastes/biomass, etc.
consumed by CMA Member Companies
was 0.64 Mn.t. in 2013-14 as against 0.35
Mn.t. in 2012-13.
CMA continues its efforts to reach out of
the authorities to enhance Alternate Fuels
and Raw Materials (AFRs).
In response to DIPP reference in June
2013, seeking CMA’s suggestions for
facilitating enhanced usage of Alternate
Fuels, the Association suggested broad
measures needed to be taken for
achieving this and also indicated the need
for involvement and action on the part of
specific authorities/departments of the
Govt. The suggestions included incentives
for cement plants using higher percentage
of AFR, capital subsidy for investments in
pre-processing and co-processing of
waste, fine tuning of the classification of
hazardous/non-hazardous waste, granting
approval for usage of same alternate fuels
in different plants, one time NOC for
inter-state boundary movement of
hazardous waste, etc., besides creation of
a separate R&D Cell for classification and
utilization of waste.
Subsequently, in March 2014, DIPP sought
suggestions on Action Plan to be
implemented by the DIPP on usage of
Alternate Fuels and other related issues
for overall improvement in cement sector.
CMA in its response dated 2nd
April 2014
highlighted the uniqueness of cement
manufacturing process requiring high
temperature, suggested that it offers
perhaps the best way to consume both
hazardous as well as non-hazardous
53rd Annual Report
17
wastes as Alternate Fuels without any
negative impact on environment, which
while providing an effective solution to
the menace of ever-increasing waste
generation also conserves the depleting
fossil fuel, namely coal. It was stressed
that the Cement Industry needs to be
given necessary preference in
the utilization of all such
Alternate Fuels.
Further, in order to feed the
various types of Alternate Fuels,
the plants have to make
necessary modifications/
replacements in the AFR
handling equipments/ feeding
systems which require large
investments as well.
To facilitate and encourage AFR
usage, extending capital subsidy for
creation of pre-processing and feeding
systems similar to the one being extended
to incinerators was recommended.
Additionally, coverage of expenditure on
collection, process and creation of
facilities for conversion of Municipal Solid
Waste (MSW) to Refuse-derived Fuel
(RDF) under CSR spending under Section
135 of the Companies Act, would lead to
enhanced use of RDF in Cement Industry,
which can reduce the nuisance of land fill
and contamination cost by disposal of
MSW by Municipal Corporation.
FWs for Coal Loading by Rail
During the year 2013-14, Cement Industry
received on an average 965 Four
Wheelers (FWs) per day for loading of
Coal, as against 1050 FWs per day in
2012-13 i.e. a decrease of 85 FWs per day
over last year.
Study Group – Rates of Royalty on Coal and
Lignite
Under Section 9(3) of the Mines and
Mineral (Development and Regulation)
Act, 1957, the Central Government is
empowered to amend the Second
Schedule to the Act so as to enhance or
reduce; once in three years, the rates of
royalty on minerals specified in Schedule-I
of the said Act including coal. In July 2014,
the MOC constituted a Study Group in
order to consider the question of revision
of rates of royalty on coal and lignite in all
its aspects, under the Chairmanship of
Additional Secretary, MOC. Members of
18
the Group include Joint Secretary, MOC; a
Representative each of Ministry of Mines;
Ministry of Power; CMD, CMPDIL; CIL;
Federation of Indian Chambers of
Commerce and Industry (FICCI);
Federation of Indian Mineral Industries
(FIMI) with Director, MOC as
its Convener.
TRANSPORTATION –
RAILWAYS
Cement Industry continued to
struggle hard, during the year
under review, in the
transportation of Cement,
Clinker, Coal, Fly Ash, etc., by
Rail due to a raft of reasons
pertaining to (a) Commercial (b) Policy
and (c) Technical. Despite the fact that
Rail transport is 4-5 times more energy
efficient than road transport, the end cost
of Rail Transportation continues to be
much higher than the Road Transport
due to regular direct or indirect hikes in
the freight rates and inadequate
availability of rakes coupled with
infrastructure constraints at the
terminals.
Cement and Clinker Transportation by Rail
and Revenue Generation
As per the statistics hosted by Railways on
their website, loading of cement and
clinker by Rail for 2013-14 was 109.81
Mn.t. as against 105.85 Mn.t. previous
year, a growth of 3.74% over last year. A
Bar Chart below gives the total loading of
cement and clinker by Rail. Railway zone-
wise details of Cement/Clinker loading are
given in the Annexure-V.
Similarly, the total earnings generated by
the Railways from the Cement Industry
went up by 5.25% over last year, from
Rs.8233.40 crores in 2012-13 to
Rs.8665.32 crores in 2013-14.
Enhancement in Transportation Cost
In the last 2/3 years, Railway Board had
taken a number of Policy measures that
have resulted in enhancement of the
overall transportation cost of cement by
Rail anything between 36% and 38%
through its various administrative policy
dispensations. From June 2014, Railways
have steeply increased freight rates by
6.5% and Wagon Registration Fee from
Rs. 15000 to Rs. 50,000 per rake. CMA
has been submitting to the Railway Board
the need for and urgency to lower the
53rd Annual Report
19
overall transportation cost of cement,
clinker, etc. by Rail, if Rail co-efficient for
cement has to go up.
Meeting with Hon’ble Railway Minister
A small delegation of CMA under the
leadership of its President Shri O.P.
Puranmalka, met Shri D.V. Sadananda
Gowda on 5th
June 2014 and, inter alia,
requested him to withdraw the Railway
Board circular of 16.5.2014 steeply
enhancing the demurrage and wharfage
charges six times of the base rate from 1st
June 2014.
With the efforts of President, CMA and
the Committee on Railway Matters,
Railway Board has reviewed the matter
and decided that the guidelines contained
in their Circular under reference may be
withheld till further orders and the
guidelines prevailing prior to 1st
June 2014
will be followed.
CMA Committee on Railway Matters
During the year under review, CMA
Committee on Railway Matters, under the
Chairmanship of Shri Rajeev Mehta,
Executive President (Logistics), UltraTech
Cement Ltd., had Meetings with
Chairman, Member (Traffic), Member
(Commercial), Advisors, Executive
Directors and other senior officers of the
Railway Board to keep them abreast with
Cement Industry’s Rail-related problems
with suggestions for their amicable
solutions.
Rail Cement Co-ordination Group
Two meetings of the Rail Cement
Co-ordination Group (RCCG) were held
under the Chairmanship of Shri Manoj
Akhori, Executive Director – TT (F),
Railway Board. The meetings were graced
by the Member Traffic and other senior
officials with their presence. During the
meeting, Railways’ response was positive
on the following issues raised by the
Industry representatives:
� Railway Board agreed ‘in principle’ to
mechanize five goods sheds in the
country handling cement, to begin
with. They requested CMA to send
them a list of preference indicating five
Goods Sheds where Cement Industry
wants Railways to create infrastructure
facilities for unloading.
� Railways would consider and examine
Industry’s request for 25 to 30% freight
rebate for short-lead movement of
cement say upto 450 kms. to
encourage shifting of present short
lead cement traffic from Road to Rail
which is about 40 to 50% of the total
despatches.
� Before making any announcement of
any Scheme whose implementation
will impact the Cement Industry,
Railways would first invite the inputs
from the Cement Industry and
thereafter would also discuss with
them the Draft Policy concerning
cement.
20
Representations/Presentations
In order to encourage and enhance Rail
share for movement of cement, clinker
and input materials by Rail, CMA, on
behalf of the Cement Industry, made the
following submissions to the Railways,
from time to time, in its various meetings,
representations and presentations:
• CMA requested the Railway Board to
withdraw their Rates Circular No. 20 of
20th June 2014 hiking the freight rates
by 6.5% as Cement Industry, which has
already been reeling under
tremendous price pressure due to
sluggish demand of Cement, cannot
absorb this increase.
• All important terminals handling
cement in the country may kindly be
mechanized with world-class facilities
for improving better turnaround of
wagons.
• Encourage private investments in
Lease Wagon Investment Scheme
(LWIS) and other Schemes of Railways
by providing freight rebate of at least
22% and that too for the entire life of
the wagons i.e. 35 - 40 years.
• Modified Wagon Investment Scheme
(MWIS) Policy be put in place after
discussion with actual users.
• Before announcing any Policy, inputs
from CMA/ Cement Industry may
kindly be obtained.
• Rakes requirement of the Industry may
kindly be met in full throughout the
year, particularly during peak
construction period.
• The problem of the Industry in
claiming Cenvat Credit on Service Tax
on Transportation by Rail be
addressed.
• Railway Board should withdraw their
Rationalization Scheme General Order
No. 01/2012 – Amendment No. 6 of
11.02.2014, whereby transportation
cost for Cement Plants falling under
Jabalpur Division of the West Central
Railway (WCR) has gone up between
18.7% and 77.5% depending upon the
destination the material is to be
transported.
• Railways may take speedy action on all
the proposed Private Sidings which
could not be set up in the last few
years for want of various clearances
from the Railways.
• Railways should consider scrapping its
Dynamic Pricing Freight Policy for
Cement Industry as various Policy
Decisions under this Scheme have
significantly enhanced the overall
transportation cost of Cement by Rail.
This has led to a steady shift to Road
transportation.
53rd Annual Report
21
Bulk Movement of Cement
CMA continued to request to the Railways
to suitably bring down the Rail
Classification Slab for bulk cement and
also to provide attractive freight discount
to all those who purchase Special Purpose
Wagons for bulk movement of cement
and fly ash, for the entire life of wagons,
which is 35-40 years.
Railway Budget 2014-15
Shri D.V. Sadananda Gowda, Hon’ble
Railways Minister has presented the
Railway Budget for 2014-15 on 8th
July
2014.
RAIL BUDGET 2014-15 – MAJOR HIGHLIGHTS CONCERNING CEMENT INDUSTRY
� Target for freight loading has been firmed up at 1101 MT for 2014-15, which is 51 MT
more than 2013-14.
� Setting up of Private Freight Terminal on PPP model to develop network of freight
terminals.
� Setting up of Logistic Parks to modernize logistics operations; Top priority to
mechanization of loading and unloading.
� Suitable pricing mechanism to garner additional revenue from empty flow - Pilot
project for automatic rebate to customers offering traffic through computerized
Freight Operations Information System (FOIS).
� Launching online registration of demands for wagons in next two months for
facilitating online payment of Wagon registration fee.
� Initiating process for ERR (Electronic Railway Receipt) during the year.
� Close monitoring of Dedicated Freight Corridor Project, Implementation of Eastern
and Western DFCs; Target of nearly 1000 kms of civil construction contracts.
POWER
Uninterrupted power supply is a must for
running the Cement Plants that require
around 20 MW of power for a million
tonne Cement plant. Power constitutes a
major cost component in cement
manufacturing process. With the
projected additional capacities for cement
and clinker, Energy security is going to
become a key concern for the industry.
Proactive use of Waste Heat Recovery
(WHR) and Alternate Fuels like Municipal
Wastes, Cut Tyres, Paint Sludge, Biomass,
will be important alternatives to coal in
the years to come.
It is gratifying that almost all the cement
plants have installed captive power
generation capacities to the extent of 60%
22
of their requirement, and even 100% in
some cases. Captive power generation
capacity of approx. 118 MW in 1982-83
has risen to more than 4200 MW by
2012-13. CMA is, however, hamstrung by
lack of up-to-date information. The 4200
MW captive power figure is inclusive of
the power capacity set up through Wind
Farms and WHR power plants.
WHR systems are technologically proven
and stable alternatives. However, these
call for a high capital investment. Besides,
adequate policy and financial incentives
need to be provided by the Govt. With
the right set of incentives, the Cement
Industry has the potential to abate up to
nine MTPA of CO2 emissions by 2025.
The Industry has placed significant focus
on improving energy efficiency in plant
operation over the years and it is an
ongoing process. By the end of XIIth Plan
(Year 2016-17), the Cement Industry’s
average electrical energy consumption is
expected to come down to 78 kWh/t
cement from 80 kWh/t cement and the
average thermal energy consumption to
about 710 kcal/kg clinker from 725
kcal/kg clinker. The best electrical energy
consumption presently achieved by the
state-of-the-art cement plants is nearly 66
kWh/t cement and thermal energy of
about 667 kcal/kg clinker, which are
comparable to the best reported figures
of 65 kWh/t cement and 660 kcal/kg
clinker in a developed country like Japan.
The Industry’s proactive participation in
the ongoing implementation of the PAT
(Perform, Achieve and Trade) Scheme of
Bureau of Energy Efficiency (BEE) (under
the National Mission for Enhanced Energy
Efficiency- one of the Eight Missions of
the Prime Minister’s National Action Plan
on Climate Change) is expected to drive
further reduction in energy consumption
in the cement plants.
The other issues, which merit due
attention of the authorities towards the
industry’s efforts for further energy
efficiency improvements, include the
bottlenecks in (i) increasing the Usage of
Alternate Sources of Energy, and (ii)
exploiting full potential of Cogeneration
of Power through WHR Systems. Usage of
AFR, WHR based cogeneration of power,
etc. in the Cement Industry will go a long
way in reduction of the Carbon Footprint
of the industry.
EXPORT
Despite the fact that the quality and
technology of Indian cement is world-
class and the Industry is having an excess
cement capacity of about 100 Mn.t.,
exports of cement and clinker have been
waning continuously mainly because of
high level of State levies and royalties for
which there is no Cenvat Credit,
infrastructure constraints; high
53rd Annual Report
23
transportation cost from plants to border
points/ports; in addition to Government’s
encouragement for import of cement with
no custom duty, thus distorting a level
playing field between domestic and
imported cement.
With a view to making Indian
Cement/Clinker competitive in the Global
Market, CMA has been making following
submissions to the Govt., from time to
time:
� Royalty paid on limestone should be
neutralized for export of cement. This
is in sync with the approach that
domestic taxes are not exported.
� Duty Drawback should be enhanced to
3% (i.e. erstwhile DEPB rates) to
sustain exports.
� There is no Custom Duty for import of
Cement into the country. This anomaly
needs to be removed to offer a level
playing field to domestic production
vis-à-vis imports.
� For the purpose of exports,
classification of cement and clinker for
Rail freight be reduced from 150 as of
today to 140.
� Investments made for decongesting
the National ports by developing
private jetties/ports for export of
cement and clinker be allowed a higher
rate of depreciation.
PROMOTIONAL ACTIVITY: ADVOCACY
AND AWARENESS GENERATION
Promotion of Cement Concrete Roads and
White-Topping
Keeping the interest of the nation in
mind, CMA and its constituent member
companies have undertaken extensive
and wide ranging programme to promote
the Construction of Techno-economically
Superior Cement Concrete Roads and
White-Topping (Concrete Overlay over
Bituminous surface) in Urban and Rural
India as also Highways throughout the
country.
As a part of advocacy, propagation and
documentation, CMA has brought out
several publications both informative and
technical as well, organized National
Seminars/Workshops, held interactive
meetings, made representations/
presentations to convince the decision
makers of the superiority of Concrete
Roads with the help and support from
some reputed organizations like Central
Road Research Institute (CRRI).
The sustained efforts of CMA and
member companies have resulted in a
gradual change in the mindset of
Engineering Fraternity & officers in
Government and semi-Government
bodies in favour of Cement Concrete
Roads/ White-Topping.
24
Workshops/Seminars
CMA and UltraTech Cement Ltd. jointly
organized “Workshop on Cement
Concrete Roads and White-Topping” in
June, 2013 at Dehradun. More than 100
delegates comprising Engineers from
Public Works Department (PWD), Rural
Engineering Services (RES), Irrigation
Department of Uttarakhand, Mussoorie
Dehradun Development Authority
(MDDA), Nagar Nigam, Dehradun,
Consultants, Contractors, Professors from
Engineering Colleges and representatives
from Cement Industry actively
participated in the Workshop. Three
presentations were made by the experts
on Design, Construction, Maintenance
and Quality control aspects of Cement
Concrete Roads and White-Topping.
These presentations were very well
received and evinced keen interest
amongst the participants and the
discussions that followed showed the
openness of mind of the Engineers and
Officers of the Government and
Authorities towards adoption of new
technologies.
During 2013-14, CMA participated/
Sponsored in the workshops/ seminars
related to Cement Concrete Roads which
were organized by the organizations such
as PHD Chamber, UBM India Pvt. Ltd. and
Indian Concrete Institute. A detailed list of
Workshops & Seminars on Cement
Concrete Roads CMA participated in/
Sponsored is at Annexure-VI.
Presentations/Meetings/Communication:
CMA officials along with Cement
companies held Meetings and organized
Presentations with Central and State
Government Officials for promotion of
Cement Concrete Road/ White-Topping. A
list of the Presentations and Meetings
organized is at Annexure-VII.
The Presentations made by experts in
these meetings mainly emphasized on the
superiority and cost effectiveness of
Cement Concrete Roads especially for the
concerned areas of the Government
Departments.
CMA addressed letters to the Ministries
and Senior Officers of Central and State
Government Departments highlighting
the advantages of building Road network
in Cement Concrete. The authorities were
also requested to take policy decision to
construct Urban & Rural Roads, State
Highways and National Highways in
Cement Concrete. Further, detailed
reports on how Cement Concrete Roads
are superior and most economical to the
Bituminous ones apart from having host
of other advantages have been provided
to the news agencies on their request.
This news has also published in the
National Newspapers.
Construction of Roads in Coalfield Areas:
CMA learnt that Mahanadi Coalfields Ltd.
(MCL) has decided to construct Cement
Concrete Roads costing approximately
53rd Annual Report
25
Rs.1000 crore for transporting coal by
heavy load carriers from their coalfield
areas to stockyard/siding. This decision
was taken by the subsidiary company of
CIL because the existing bituminous road
could not take this loading resulting in
frequent damages causing disruption in
the coal evacuating traffic.
CMA, therefore, addressed letters to
other coal subsidiary companies of CIL
apprising them that Cement Concrete
Roads have a definite edge over Bitumen
ones, especially for heavy load carriers.
Today Cement Concrete Roads are
cheaper than Bituminous ones, even at
the initial stage of construction in most of
the cases, apart from having durable and
maintenance free life of 30-40 years. On a
life-cycle-cost basis, in any case, Cement
Concrete Roads are Cheaper and better
alternative. CMA requested subsidiary
coal companies to consider for Cement
Concrete Roads in their respective
Coalfield areas as well.
In November 2013, CMA requested the
Additional Secretary, MOC to take policy
decision for construction of Cement
Concrete Roads instead of Bituminous
ones in the subsidiary coal companies of
CIL for all the upcoming projects. To take
the matter forward CMA organized
meetings and presentations at CMPDIL,
Central Coalfields Limited (CCL), Ranchi
and Western Coalfield Limited (WCL),
Nagpur on 23rd
January 2014 and 20th
March 2014 respectively.
CMA Publications: CMA has been
periodically bringing out several
publications both informative and
technical as a part of advocacy,
propagation and documentation of
Cement Concrete Roads. CMA brought
out a Publication “Cement Concrete
Roads for Rural India - A Must” in
2013-14.
The main objective of the Publication has
been to spread and deepen awareness to
the authorities and decision makers,
particularly at the district and large towns
about the construction of Cement
Concrete Roads and White-Topping under
various schemes of Central and State
Government in Rural India and the
practices followed in some States for
guidance. The Publication was released by
Dr. E.M. Sudarsana Natchiappan, the then
Hon’ble Minister of State for Commerce
and Industry, Govt. of India on the
occasion of CMA’s 52nd
Annual Session
held in January 2014 and was widely
circulated.
Tender Notices for Cement Concrete
Roads : CMA has regularly been receiving
the details of tender notices for
construction of Cement Concrete Roads
invited by the construction agencies all
over the country. CMA requests the Road
Construction Agencies to take proper
quality control measures during the
construction of Cement Concrete Roads in
26
their areas. A copy of the Association’s
publication Dos and Don’ts is being sent
to them for information and guidance.
Nodal officers of concerned areas are also
being requested to interact with the
construction agencies and provide them
technical assistance.
Welcome Step by the New Government at
the Centre
It is heartening to record that after
assuming charge, the Hon'ble Minister for
Road Transport, Highways and Shipping,
Shri Nitin Gadkari, has been taking pro-
active initiatives in advising the engineers
for going ahead with construction of
Highways in Cement Concrete.
Your Managing Committee is happy to
report that the Ministry of Road Transport
and Highways vide its Circular No.
RW/NH-33044/31/2014/S&R (R) (Pt)
dated 4th
August, 2014 to the Chief
Secretaries of all the State
Governments/UTs, Principal Secretaries,
Engineer-in-Chief and Chief Engineers of
Public Works Departments of all the
States/UTs etc. has directed to evaluate
the most cost effective pavement
alternative on the life-cycle-cost basis
and not only on the initial cost of
construction basis. The circular further
directs that preference to Cement
Concrete Roads be given even if they are
costlier by upto 20%.
The Government has now already
commenced the process of fixing the
annual rate of cement by inviting tenders
from the cement manufacturers.
Housing
Meeting with the Secretary, Ministry of
Housing and Urban Poverty Alleviation,
Govt. of India : A small delegation of CMA
had interactive meeting with Shri Arun
Kumar Misra, IAS, Secretary, Ministry of
Housing and Urban Poverty Alleviation,
Government of India on 24th
June 2013
and made detailed presentation on RMD
(Rapid Monolithic Disaster Proof)
Technology for urban/rural mass housing.
This technology can be advantageously
used for the construction of houses under
mass housing projects in urban area in the
various Govt. Schemes across the country.
Subsequently, CMA addressed letters
regarding RMD technology to Chief
Minister, Govt. of Uttarakhand; Principal
Secretary Public Works Department,
Uttarakhand; Minister of State for
Housing, Slum Improvement, House
Repairs and Construction, Urban Land
Ceiling etc. Govt. of Maharashtra;
Principal Secretary, Housing Department,
Govt. of Maharashtra; and Chairman &
Managing Director, HUDCO, New Delhi.
53rd Annual Report
27
59th CMA Technical Committee Meeting held in Mumbai on 24.1.2014
TECHNICAL MATTERS
During the year, the CMA Technical
Committee engaged itself with the
emerging Cement Standards, Emission
Norms being finalized by MoEF&CC, apart
from addressing the Fuel Security
concerns of the Industry.
The Committee continued to discharge its
functions under the Chairmanship of Shri
S.K. Wali, Wholetime Director, JK Lakshmi
Cement Ltd., being ably assisted by Shri L.
Rajasekar, Executive President
(Technology & Research Centre),
UltraTech Cement Ltd., Chairman of
the Committee’s Task Force on
Environment, and Shri D.
Sivagurunathan, Advisor (Technical),
The India Cements Ltd., as the
Chairman of the Committee’s Task
force on Energy.
The 56th
, 57th
, 58th
, and 59th
meetings
of the CMA Technical Committee
along with Task Forces were regularly
held during the year.
Besides the above, sub-group
meetings on BIS and Environment were
also held during the period.
The above meetings focused on dealing
with emerging Regulatory Regime calling
for stricter norms for Product & Quality,
Energy Efficiency & Consumption, and
Environmental Emissions that would
impact on the day-to-day Cement plant
operations, and broadly discussed other
matters of concern, viz. Corporate Social
Responsibility (CSR), our continued
National and International collaborative
efforts with Confederation of Indian
Industry (CII), Cement Sustainability
Initiative (CSI), Institute for Industrial
Productivity (IIP), etc., apart from our
information dissemination activities, to
drive industry’s consensus on all Technical
Issues besides responding to the
Authorities on the various issues of the
Member Cement Companies.
During the year, CMA Technical
Committee sustained a great loss in the
passing away of Dr Debashish Ghosh, a
long-time dedicated Senior Member
serving on the CMA Technical Committee
& Sr Joint President, New Projects and
R&D, Birla Corporation Limited. CMA,
however, got some respite with the
continued support of the existing
Members as well as some new Members
28
joining the fold of the Technical
Committee after the reorganization of the
CMA Technical Committee.
A summary of the Issue-wise activities
conducted during the year is presented
below.
Bureau of Indian Standards (BIS) and
Quality Matters
Subsequent to publication of IS 8112:2013
effecting Revision of SO3 in the Indian
Standards for OPC by raising the Chemical
parameter of SO3 percentage Max, given
as ‘3.0’ in IS 8112:1989 to ‘3.5’ and
thereby meeting a long standing demand
of the Cement Industry and your
Association, the Draft Specifications for
Clinker under wide circulation were
discussed threadbare in CMA Technical
Committee, and CMA’s comments on the
issue sent to BIS. Comments received by
BIS from CMA, and other stakeholders on
the Draft Indian Standards Specification
on Portland Cement Clinker were
discussed in its 4th
Meeting of the BIS
Cement and Concrete Panel CED 2:1/P1
on 27th
February 2014. The Panel
considered the comments, the
recommendations of which were
subsequently approved by BIS in its 21st
Meeting of the Cement and Concrete
Sectional Committee (CED 2) held on 14th
March 2014. Most of the
amendments/revisions suggested by the
CMA members were agreed upon and
duly incorporated. While endorsing the
recommendations of the Panel, some of
the BIS Sectional Committee’s decisions
for adoption and publication, relate to -
i. Having Lime Saturation Factor (LSF)
requirement as 0.66 to 1.02 to take
care of clinkers for any variety of
cement.
ii. Having SO3 content requirement as
2.75% maximum to accommodate the
scenario of increasing use of pet coke.
iii. Granulometric composition of clinker
to be as per Table below keeping in
view the practical considerations
including increased use of pet coke:
Sl. No.
Clinker Size
Proportion by mass, Percent
i) < 5 mm 35, Max
ii) 5 – 50 mm 60, Min
iii) >50 mm 10, Max
Energy Issues - Bureau of Energy
Efficiency’s (BEE) PAT Scheme
Pursuant to identification of the various
parameters finalised by the BEE Sub-
Technical Committee of Normalization
towards implementation of the PAT
Scheme for the Cement Sector during the
First Cycle of the scheme (2012-2015),
and subsequent endorsement of the same
by the BEE Technical Committee (Cement
Sector) in its meeting on 24th
July, 2013 to
consider the impact of the parameters
such as Capacity Utilization, Plant Load
Factor, Effect of using Pet Coke, Product
Mix, Power Mix (Import/ Export of
Power), Clinker Import/ Export, Non-
availability of Bio-Mass, and Coal Quality,
etc. The Specific recommendations of the
53rd Annual Report
29
BEE Technical Committee were
considered by BEE, following which BEE
circulated the findings of its Technical
Committee (Cement Sector) on
Normalization of the above impacting
parameters to the Designated Consumers
(DCs) to facilitate implementation of the
PAT Scheme in the Cement sector,
seeking their feedback. The consolidated
comments on the feedback were
discussed and worked out in BEE’s
Technical Committee (Cement Sector)
Meeting on January 10, 2014.
Now, the DCs have to get ready for
conducting the mandatory Audit of their
plants under Section 14(i) which has to be
completed within 18 months after
notification.
Subsequent to the above Meetings of the
BEE Sub-Technical Committee
(Normalization/ Cement Sector), CMA
forwarded its comments to BEE raising
some of the key issues on the decisions of
the BEE Sub-Technical Committee
(Normalization/Cement Sector), involving,
(i) Impact of Quality of Alternate Fuel in
Assessment Year, (ii) Inadequate Fly Ash
Quantity in Assessment Year, (iii) Quality
of coal used in Kiln, (iv) Limestone
Grindability, (v) Addition of New Line after
Baseline Year, (vi) Frequent Grid power
tripping, (vii) Use of baseline Clinker
factor in Assessment Year, (viii) Additional
safety equipment installation in
Assessment Year, and (ix) Energy
consumed on project activity and
installation of energy efficient equipment.
Following developments have since taken
place in implementation of the BEE’s PAT
Scheme for the Cement sector:
a) Final report on Normalization factors
and Modified Form-1 has been
submitted by the Sub-Technical
Committee for Cement Sector.
b) BEE has sent the Normalization
document along with the Modified
Form-1 to all the 85 DCs in the Cement
Sector and requested all the DCs to
submit:
i) Old Form-1 (As filled during the
baseline year) for the year 2012-13
(Previous Year) and 2013-14
(Current Year), which was used last
year while submitting the energy
consumption return.
ii) New Modified Form-I with inbuilt
Normalization Factor for the year
2007-08, 2008-09 & 2009-10
(Baseline year) and 2013-14
(Current Year). This form has inbuilt
normalization factors, and has been
developed now.
(c) All DCs were requested to fill the
necessary data in above two forms and
send to their respective State
Designated Agencies (SDAs) with a
copy to Bureau of Energy Efficiency
before 30/06/2014.
30
BEE, in association with the State
Designated Agencies (SDAs), has
organised four Regional Interactive
Workshops in June 2014, to explain the
Normalization factors and Modified
Form-1 for Cement Sector, as finalized
by the Technical and Sub-Technical
Committee of Cement Sector, at
Ahmedabad, Bengaluru, Udaipur and
Chennai.
Environment
On the Environmental front, CMA
continued to pursue vigorously the
emerging issues and focused on working
in tandem with the Govt. Authorities to
evolve realistic environmental standards
for Cement Industry. These include
MoEF&CC, Central Pollution Control
Board (CPCB), State Pollution Control
Boards (SPCBs), DIPP, etc.
Emission Standards for Cement
Industry
A series of intense interactions with the
Cement Industry Stakeholders, CMA and
NCB were held for over more than 3 years
by MoEF&CC/CPCB, in the process of
developing the Emission Norms. CMA
actively participated in these technical
deliberations and underlined the need to
prescribe implementable Standards and
Norms, particularly in view of their
introduction newly to the country’s
Cement plants. In the last Meeting of the
Expert Committee of MoEF&CC on 30th
January 2014, the Cement Industry had
placed its specific concerns on the Norms,
and followed it up with its letter dated 3rd
February 2014.
MoEF&CC has since notified the Emission
Norms for SO2, NOx & Load-based
Particulate Matter (PM) for the Cement
Industry vide Gazette Notification on 25th
August 2014 that are too stringent to
achieve within the given time-frame
allowed.
These Norms are at variance with the
suggestions of CMA for ensuring
enforcement of comprehensive and
realistic Emission Standards and positive
PAT Workshop at Udaipur on 24th June 2014
A Group of CMA Environmental Sub-Group with
Shri D.N. Pandey, Member-Secretary,
Rajasthan State Pollution Control Board at meeting
on 3.1.2014 at Jaipur
53rd Annual Report
31
compliance in a phased manner and
subject to review after 5 years for
applying stringency if needed, to the
Norms proposed after examining the
environmental performance of the
Cement plants over a specified period as
reasonable, after their introduction.
The above Norms issued by the MoEF&CC
have evoked strong apprehensions in our
Member Cement Companies regarding
the Cement Industry’s current capability
to comply with these Norms and,
therefore, their implementability. CMA,
accordingly, made a strong
representation on 25th
September 2014
to MoEF&CC, bringing to its attention the
concerns of the Industry that were earlier
brought out before CPCB/MoEF&CC with
regard to the implementation of the
Emission Norms, particularly the
Industry’s specific concerns on the impact
of poor quality of input raw
materials/fuel/power, on the Emissions,
and the practical difficulties in meeting
them within the given time-frame, the
proposed standards in the existing plants
having constraints of technology vintage
and layout, besides the huge capex and
operating costs required for upgradation
etc. Highlighting the Cement plants’
difficulties to meet the notified Norms in
respect of each of Particulate Matter
(PM), NOx, within the allowed time-frame,
the Ministry was requested for a review
of the notified Norms so that a self-
sustaining Cement Industry does not get
demoralised and is obliged to face
consequences of non-compliance.
Development of Environmental Standards
for Mining of Limestone
In regard to the newly emerging
Environmental Standards for the Cement
sector in case of Limestone Mining, CPCB
convened a meeting of stakeholders on
30th
January 2014, where Central Institute
of Mining and Fuel Research (CIMFR),
Dhanbad made a presentation on the
findings of their consolidated study
covering the additional five plant mines as
proposed by the industry after having
conducted the measurements during
March–May 2013 in five selected plants
of CMA Member Companies. CMA
participated in the meeting alongwith the
representatives from Member Cement
companies and apprised the Authorities
of the specific constraints, namely,
scarcity of water for prevention and
control of emissions vis-à-vis the
increasing pressure for water
conservation on the other hand, not
allowing the plants to meet the fugitive
emission standards for limestone mining
being proposed. As a follow-up, CMA
wrote to CPCB that the proposed activity-
wise fugitive emission standards for PM10
and PM2.5 in limestone mining be
stipulated at 1200 µg/m3 and 750 µg/m3
respectively, to begin with. This has to
be followed by the Peer & Core Expert
Group Meeting to consider the
recommendations further, before CPCB
takes a final call.
32
Other Initiatives
Increasing Thermal Substitution Rate (TSR)
in Indian Cement Industry
CMA entered with IIP, Washington DC, a
Consulting Agreement for the IIP-funded
project on “Increasing Thermal
Substitution Rate (TSR) with increased
usage of Alternate Fuel and Raw materials
in the Indian Cement Industry”. Under
the First phase of the Project, an Action
Plan towards increasing AFR usage was
developed, with the participation and
involvement of multi-stakeholder groups
comprising Industry, Policy Makers,
Regulators, Technology providers,
Academia, etc. from across the world. The
Second phase culminated with an
International Conference on “Enhanced
Usage of Alternate Fuels & Raw Materials
(AFR) - Co-Processing in Cement Plants”
organized jointly by CMA & IIP, in New
Delhi, during 7- 8 August 2013, to share
the findings of the IIP-CMA study under
Phase-I of the Project on developing an
Action Plan towards increasing AFR usage.
The Conference was inaugurated by Mr.
B.K. Chaturvedi, Member, Planning
Commission, Govt. of India, with
Welcome address by Dr Jigar V. Shah,
Executive Director, IIP, Washington DC,
Introductory address by Mr. Ratan K.
Shah, Group Executive President,
UltraTech Cement Ltd, and Special
addresses by Mr. Philippe Fonta,
Managing Director, World Business
Council for Sustainable Development-
Cement Sustainability Initiative,
Switzerland, and Mr. M.A.M.R. Muthiah,
President, CMA. Mr. Saurabh Chandra,
Secretary (DIPP), Ministry of Commerce &
Industry, Govt. of India, delivered the
Keynote address. A CMA-IIP joint
publication “Action Plan for Enhancing the
Use of Alternate Fuels and Raw Materials
in Cement Industry” was formally
released by the Chief Guest, Mr B.K.
Chaturvedi.
The Conference was a huge success with
active participation of more than 250
invitees and delegates representing cross-
section of experts from the State and
Central Regulatory Authorities, Cement
Industry, Service Providers, Universities
etc. from across the world.
As a follow up to the earlier study
conducted, efforts are now being made to
continue these initiatives through a fresh
tie-up with IIP which has been formulated
and a fresh Agreement signed. As per this
Agreement, CMA in association with IIP,
has decided to organize the “Second
International Conference on Enhanced
Usage of Alternate Fuels and Raw
Materials in Cement Industry” on 19-20
February 2015 in New Delhi. The
Conference is broadly expected to
address the various environmental issues
which still continue to come in the way of
increasing TSR%, sharing the Global
experiences and perspective, leveraging
CSR initiatives now legally recognized and
available for increased efforts in
processing of Municipal Wastes, besides a
few case studies on the success of various
53rd Annual Report
33
Alternative fuel usages in Cement plants.
To facilitate the Cement Machinery and
Equipment manufacturers dealing with
Alternate Fuels related systems to share
the detailed features of their products
with the participants, on the sidelines of
the Conference, CMA is arranging for
Exhibitions space for the prospective
Exhibitors.
CMA and Cement Sustainability
Initiatives (CSI)
CMA participated in the CSI partners’
meeting held in Vancouver, Canada on
30th
September, 2013 where a
presentation on “Indian Cement Industry
Towards Low Carbon Roadmap” was
made by the Secretary General, Shri N.A.
Viswanathan and Dr. S.K. Handoo,
Advisor(Technical).
Chief Executives of other Cement
Associations from USA, Canada, Japan,
Europe, Brazil, South Africa, Australia,
China, participating in the meeting also
made presentations on the status of their
industry.
The CSI Annual Forum meeting was held
in the same venue during 1-2 October
2013. Some interesting presentations
made included Green Buildings,
Sustainable Construction. Besides the
break-out sessions, amongst others,
deliberated on Research and Innovation,
New Requirements for materials, Energy
efficiency and conservation.
Following the CSI Partners’ meeting and
the CSI Annual Forum held in Vancouver,
Canada in September-October last year,
the CSI-WBCSD organized its Meeting of
Task Force 6(Communications) for the
first time outside Europe, in Mumbai on
25-26 February 2014. Representatives
from our Member Cement companies,
namely, Dalmia Cement Bharat Ltd,
Heidelberg Cement India, My Home
Industries, Zuari Cement, besides ACC and
Ambuja Cements participated in the
meeting. Overseas representatives of
CRH, Italcementi, Lafarge, Taiheiyo
Cement, IMS also participated in the
meeting. CMA was represented by Dr.
S.K. Handoo, Advisor (Technical), and
Shri S.V. Joshi, Jt Secretary.
The meeting discussed key action items in
2014. Mr Philippe Fonta of CSI presented
an overview of the different work areas of
the CSI while Ms Sunita Pendse of
UltraTech supplemented about TF6,
specifically on the role of a TF6 member.
In order to increase the awareness level
about the CSI within companies, it was
suggested to produce a list of tools and
resources as a handy reference for
companies. Dr. S.K. Handoo, Advisor
(Technical), CMA, presented the
challenges and opportunities of the Indian
Cement Industry.
Highlighting the importance of CSI’s
participation and prominent presence in
key local events, it was suggested that CSI
should also explore opportunities to be
featured as the voice of the cement and
concrete sector in key environmental
events to raise the profile of the CSI and
to establish a seat for the Cement
Industry’s presence in the discussion.
34
CEO ROUNDTABLE ON CSR FOR
CEMENT SECTOR IN LIGHT OF
SECTION 135, COMPANIES ACT 2013
A Google Panel Discussion on CSR for
Cement Sector in light of Section 135 of
the New Companies Act 2013, was held
on 13th
March 2014. The Panel Discussion
was organized by IIP and NextGen, a
leading CSR and Sustainability
Management Company.
Section 135 of the Companies Act, 2013
mandates reporting of CSR initiatives and
spending at least 2% of Net Profit on CSR
activities by Companies with net worth of
Rs.500 crores or more or turnover of
Rs.1000 crores or more or a net profit of
Rs.500 crores. Indian Cement Industry,
with an estimated CSR corpus fund of
over Rs.210 crores, will be one of the
major contributors to the CSR kitty/pie
compared to the total capital to be
generated, which is of the order of
Rs.20,000 crores.
The objective of the Panel discussion was
to brainstorm on how best the Cement
Industry can further the CSR agenda in
India through a collaborative approach for
maximum impact, while meeting
compliance requirements of Section 135
of The Companies Act, 2013 i.e. creating a
win-win situation for the society and the
businesses alike by promoting the usage
of Municipal Solid Waste (MSW) in
cement sector.
The discussions were guided by an
experienced and distinguished group of
stakeholders that included, Dr Bhaskar
Chatterjee, Director General and CEO,
Indian Institute of Corporate Affairs,
Ministry of Corporate Affairs, Govt. of
India; Secretary General, CMA and
CEOs/Senior Officials of CMA Member
Cement Companies, in addition to Dr.
Jigar Shah, ED, IIP.
The CEOs of the cement companies, while
reiterating their commitment to CSR also
shared a lot of optimism for creating win-
win models of collaboration with the
Society. CMA representatives, while
mentioning about their ongoing initiatives
with IIP on promoting the use of
Municipal Solid Waste (MSW) as a fuel to
replace coal in cement kilns, felt that such
initiatives having high environmental and
societal impact, could possibly qualify as a
CSR activity. Director General, IICA, while
clarifying some of the issues raised by the
panelists mentioned that the new Act
allows for a greater flexibility for planning
initiatives that go beyond the traditional
approach to CSR. Executive Director, IIP,
offered to play the role of a catalyst for
promoting partnership between Industry,
Govt. and the society in taking advantage
of the opportunities and in dealing with
the possible challenges under the new
CSR Act.
10th
Green Cementech
As in the past, CMA joined hands with CII
to organize the 10th
“Green Cementech
2014” – Conference & Exposition on 15 &
16 May 2014 at Hyderabad. The Theme
for this year’s Conference was ‘Make
53rd Annual Report
35
Indian Cement Plants World Class in
Green’.
The areas of focus in the Conference
included (a)Technological advancement in
Waste Heat Recovery systems and
operational case studies; (b) Special focus
on innovation in renewable energy
applications and financing options,(c)
Energy efficiency in auxiliary equipments,
and (d) Recent developments on
composite cement & policy framework,
among others. A publication on ‘Manual
on Energy Benchmarking for Cement
Industry’ was also released, on the
occasion.
Secretary General, CMA, in
his Special Address,
highlighted the
accomplishments of Indian
Cement Industry in adoption
of various energy
conservation technologies
for achieving environment
sustainability. He also
highlighted the progress of
Cement Industry on
adoption of waste heat
recovery systems and higher thermal
substitution with alternate fuels in kilns.
In the Master Speaker Session, Shri N.A.
Viswanathan, Secretary General, CMA,
shared the challenges & prospects of
Cement Industry and also highlighted the
role of technology related factors to
improve energy efficiency levels and thus
reducing the energy consumption. The
Session included a Presentations on
producing fuel by using algae growth
technology by utilizing the CO2 emission
generated from cement kilns by Mr. H.J.
Nielsen, from LV Technology Public
Company Limited.
Shri H.M. Bangur, Managing Director,
Shree Cement Limited was felicitated at
the Conference for his remarkable
contribution to the Cement Industry. In
the CEO’s Panel discussions that followed,
Shri H.M. Bangur in his Address stressed
on the need of sustainability thoughts in
business models and said that the Green
and Clean business is profitable.
Shri Bangur also shared his experience on
various areas where Shree Cement is
Felicitation of Shri H M Bangur, Managing Director, Shree Cement
Limited for his exemplary contribution in promoting growth and
sustainability in the Cement Industry during his long
and distinguished carrier
Shri N.A. Viswanathan, Secretary General, CMA,
Chairing the Session I : Master Speaker Session
36
pioneering the concept of energy
efficiency in manufacturing and adoption
of newer technologies like synthetic
gypsum production from exit flue gases in
Indian Cement Industry. Shri Bangur also
emphasized the need on increasing the
R&D efforts by Indian cement
manufacturers to achieve higher
standards in manufacturing and product
innovation.
Technological Information Dissemination &
Publications
During the year under review, CMA
published four issues of the Quarterly
Journal, “Cement, Energy and
Environment” focusing on the Technical
developments impacting on the Cement
Industry. The Journal continues to serve
as an excellent medium of communication
and dissemination amongst the ground
level technical personnel and executives
of the Member Cement Companies on
rapidly advancing spheres of technology
and developments across the world
including product quality & standards,
energy, environment, climate change and
sustainability issues bearing huge
influence on the Cement Industry. Articles
from eminent National and International
Experts dealing with these subjects are
regularly published. A number of papers
are being regularly contributed by our
Member Companies related to energy
efficiency, waste utilization, development
of newer cements, reducing carbon
footprints, etc. in addition to sharing their
technical experiences and achievements.
Alongside, there are regular insertions of
summary of important articles, news
briefs and events summary culled from
reputed journals, published brochures
and newspapers and magazines covering
technical developments impacting the
Cement Industry.
COMPETITION COMMISSION OF INDIA
Appeals before the Competition Appellate
Tribunal: against the Orders of Competition
Commission of India in -
(i) Appeal No. 103/2012
(against Case No. 29/2010); and
(ii) Appeal No. 122/2012
(against RTPE No. 52/2006)
As reported last year, CMA had filed an
Appeal (Appeal No. 103/2012) before the
Competition Appellate Tribunal (CAT) on
27th
August, 2012, including prayer for
complete Stay of the operation of the
Competition Commission’s Order dated
20.06.2012 in case No. 29/2010. Since
the Commission had held CMA guilty in
the case No. 52/2006 also, CMA filed
Appeal (Appeal No. 122/2012) in this
matter as well before the Competition
Appellate Tribunal on 27th
September,
2012 seeking relief to set aside the Order
of the CCI passed in RTPE No.52/2006 on
30.7.2012.
While disposing of the stay applications in
the above Appeals, the Hon’ble
Competition Appellate Tribunal had
passed an Order on 17th
May, 2013 and
decided that there is a prima-facie case
for granting of stay, at least in respect of
the penalties, and accordingly, granted
53rd Annual Report
37
stay to the penalties with a condition that
the appellants deposit 10% of the
penalties imposed. As regards the orders
of ‘cease’ and ‘desist’ the Tribunal
refused to stay that order against the
appellants, including the Cement
Manufacturers’ Association stating that
they do not find anything wrong at least
prima-facie.
In compliance of the above Order, CMA
deposited 10% penalty amounting to
Rs. 7,30,000/- on 14th
June, 2013.
After the grant of Stay, the Tribunal has
been hearing the matter and, as of now,
the arguments on behalf of the Appellant
(M/s.Lafarge India Pvt. Ltd.) by Senior
Advocate Shri Gopal Subramaniam stands
heard.
The captioned matters were listed before
Justice G.S. Singhvi, newly appointed
Chairman, Competition Appellate Tribunal
on 26th
November, 2014. After hearing
the parties, the Chairman directed that
the matter be now listed on 25th
February,
2015 for hearing on day-to-day basis till
the conclusion of arguments.
SERVICE TAX ON MEMBERSHIP
SUBSCRIPTION
Members may kindly recall that CMA had
received two Show Cause Notices (SCNs),
the first for the period 2005-06 to
September 2009 and the second for the
subsequent period from October 2009 to
September 2011 from Service Tax
Department, New Delhi, for a total Service
Tax liability of Rs. 10,27,73,198/- and an
equal amount of penalty, besides interest.
CMA filed its replies to the above SCNs
with the Commissioner, Service Tax, Delhi.
Commissioner, Central Excise & Service
Tax, Panchkula, thereafter passed an
Order-in-Original dated 31.10.2012
against the above two SCNs confirming
Service Tax payable amounting to
Rs.1,76,19,563 for the above periods. An
equal amount of penalty i.e.
Rs.1,76,19,563/- was also levied in
addition to penalty of Rs.10,000/- u/s 77
of Chapter V of Finance Act, 1994.
This worked out to a total amount of
Rs. 3.52 crores besides interest, as against
the original demand of Rs.10.28 crores
with an equal amount of penalty and
interest applicable on tax demanded up to
the date of payment of tax.
Against this Order, two separate Appeals
were filed by CMA on 5th
February, 2013
before the Customs, Excise & Service Tax
Appellate Tribunal (CESTAT), New Delhi,
praying to (a) Set aside the impugned
Order in original dated 31.10.2012 passed
by the Commissioner, Central Excise &
Service Tax, Panchkula and allow in
Appeal in full with consequential reliefs;
(b) Set aside the Service Tax demand
along with interest and penalty and stay
its recovery till the disposal of the Appeal;
(c) Grant a personal hearing etc.
38
CMA received a communication dated 6th
November, 2013 from the Office of the
Asstt. Commissioner of Service Tax, New
Delhi informing that in CMA’s case no stay
has been granted till now, as stay
application filed by CMA is still pending in
CESTAT. The communication added that
as per Board Circular No. 967/01/2013-CX
dated 01.01.2013 “Recovery (is) to be
initiated 30 days after the filing of appeal,
if no stay is granted or after the disposal
of stay petition in accordance with the
conditions of stay, if any, whichever is
earlier”. It further stated that the amount
had become recoverable from CMA and
(had) requested CMA to pay the
Government dues as “Stay application
pending” status did not hold any ground
in terms of Finance Act, 1994. It had also
added that if no compliance was received
within 15 days of receipt of the letter
recovery proceeding under Section 87 of
the Finance Act, 1994 will be initiated
against CMA.
CMA filed its reply on 25th
November
2013, as drafted by M/s. Lakshmikumaran
& Sridharan, to the above communication
dated 6th November, 2013 received from
the Office of the Asstt. Commissioner of
Service Tax, New Delhi, stating that as
regards the issue of recovery of the dues,
it is a settled law that no coercive action
for recovery ought to be taken by the
Department during the pendency of the
stay application before the Appellate
authority. Citations of various High
Courts were quoted in the reply. CMA
had prayed that the Department may
kindly refrain from undertaking any
coercive action for recovery till the
disposal of the stay application by the
CESTAT, New Delhi.
You Association is happy to record that
the Stay Petitions have since been
allowed and granted dispensation with
the conditions of Pre deposit of dues by
the Hon’ble Appellate Tribunal vide its
Stay Order No.53659-53663/2014 dated
21.10.2014. The appeals were listed for
final disposal on 18th
December 2014.
Due to paucity of time the appeals could
not come up for hearing on 18th
December 2014. The case is now listed
for 5th
March 2015.
AMENDMENT TO DEFINITION OF
“INSTITUTIONAL CONSUMER” IN LEGAL
METROLOGY PACKAGED COMMODITIES
RULES, 2011 VIDE NOTIFICATION DATED
6.6.2013 - CLARIFICATION BY GOVT.
As members are aware, in the case of
Institutional & Industrial Sale, Cement
Industry is claiming concessional rate of
excise duty.
The definition of “Institutional
Consumers”, which was earlier provided
for in Explanation of Rule 3 of Legal
Metrology Packaged Commodities Rules,
2011 has been shifted to Rule
2(bc) w.e.f. 06.06.2013 with minor
modification in the wording of the
definition. The definition of Institutional
53rd Annual Report
39
Consumer before amendment of
06.06.2013 was given as -
“(i) ‘institutional consumer’
means the institutional consumer
like Transportation, Airways,
Railways, Hotels, Hospitals or any
other service institutions who
buy packaged commodities from
the manufacturer for use by that
institution.”
w.e.f. 6.6.2013 institutional
consumer is defined as -
“ ‘institutional consumer’ means
any institution which hires or
avails of the facilities or service in
connection with transport,
hotels, hospitals or such other
service institutions which buy
packaged commodities directly
from the manufacturer for use by
that institutions.”
In view of this change, some members
had doubts as to what exactly is covered
in the definition of “institution” and for
that purpose the members felt that there
is a need for seeking clarification from the
Legal Metrology Division, Department of
Consumer Affairs, Government of India.
Accordingly, in April, 2014 CMA made a
representation to Secretary, Deptt. Of
Consumer Affairs, Ministry of Consumer
Affairs, Government of India stating that
the Cement Industry wants to understand
from the Legal Metrology Division,
Department of Consumer Affairs as to the
purpose and the background in providing
the exemption to the Industrial and
Institutional consumers under Rule 3 from
the applicability of Chapter II of Packaged
Commodities Rules and particularly the
category of customers covered under the
definition of Institutional Consumer under
explanation 3(i) and the definition of
Institutional Consumer after 6.6.2013 in
definition 2(bc), the background, and the
purpose thereof before and after the
change of definition of Institution w.e.f.
6.6.2013.
In response to above CMA representation,
the Legal Metrology Division, Ministry of
Consumer Affairs vide its letter No.WM-
10(23)/2014 dated 9.5.2014 informed
CMA that “the intention and meaning of
“institutional consumer” after inserting
Rule 2(bc) in the PC Rules vide GSR 359(E)
dated 6th
June, 2013 is the same as it was
before amendment, under the
explanation of Rule 3, and only it has been
shifted from Explanation Part of Rule 3 to
Definition Part of Rule 2 with more clarity
in the wordings”.
USEFUL LIVES TO COMPUTE
DEPRECIATION – COMPANIES ACT-2013
As per Schedule XIV of the Companies Act,
1956, the rate of depreciation for
Continuous Process Plant was specified as
15.33% under Written Down Value (WDV)
method and 5.28% under Straight Line
Method (SLM). This translated to about
18 years of useful life of the plant. In the
Companies Act, 2013, as per Schedule II
(Useful Lives to Compute Depreciation
40
applicable to Section 123 i.e. Declaration
of Dividend) useful life for continuous
process plant for which no special rate
has been given was specified as 8 years.
Since no special rate was prescribed for
Cement Plants, being continuous process
plant, cement plants had to charge
depreciation over the period of 8 years.
This anomaly, based on the inputs
provided by the members, was brought to
the notice of Secretary, Ministry of
Corporate Affairs, by CMA vide
representation No. 181/340/2013 dated
22nd
October, 2013.
In response to our above representation,
CMA was invited by the Ministry of
Corporate Affairs for discussion in
February, 2014. Accordingly, a CMA
delegation led by Dr. S. Chouksey, Vice
President, CMA called on Dr. Amandeep
Singh (IRS), P.S. to Shri Sachin Pilot, the
then Hon’ble Minister of State for
Corporate Affairs and apprised him that
Cement & Steel industries are similar in
nature and their end usage is
complementary and depreciation as per
earlier Companies Act, 1956 was also
similar for both the Industries. However,
in the Companies Act, 2013 the life
defined for Steel & Non Ferrous Metals
are 20-25 years and 25-40 years
respectively whereas for Cement Industry
it is only 8 years.
Ministry of Corporate Affairs, Government
of India being convinced of the
genuineness of the representation of
CMA, issued Notification No. G.S.R.237(E)
dated 31st
March, 2014 substituting the
following clause in Part ”C” in para 5, in
item IV, in sub-item (i) for clause (b) of the
Schedule II of the Companies Act, 2013:
“(b) Continuous process 25 years
plant for Which no
Special rate has been
prescribed under (ii)
below [NESD] ”
With the above Notification, altering the
period of the useful life for charging
depreciation for cement plant has been
fixed at 25 years as against the 8 years
earlier provided in the Companies Act,
2013.
EXCLUSION OF MANUFACTURING OF
CEMENT FROM NEGATIVE LIST OF
INDUSTRIES, PUNJAB GOVT
NOTIFICATION IN DECEMBER 2013
The Government of Punjab promulgated a
new Industrial Policy to attract new
investment for boosting industrial
environment in the State. In the State
Govt. Notification dated 5th
December
2013 the “Fiscal Incentives for Industrial
Promotion-2013”, the Punjab Govt. seems
to have inadvertently included the
“Cement Industry” in the list of sectors,
which shall not be eligible for incentives
available to other industries.
CMA, therefore, in its letter dated 15th
January 2014 addressed to the Hon’ble
Chief Minister of Punjab represented that
cement manufacturing is a capital-
intensive industry and also one of the
core industries whose growth and
53rd Annual Report
41
development is essential for the growth
of the infrastructure sector and
consequently the growth of the economy
of the State and the Nation, as well. The
Cement Industry not only generates direct
employment but also a large-number of
downstream indirect employment as well
and is one of the industries, which has
been utilizing hazardous environmental
material such as “fly ash” and “steel slag”
in its production, thereby contributing
significantly to the maintenance of
ecological balance and containing
environmental degradation. Further, the
Cement Industry is also capable of
utilizing other agricultural wastes like
husks, bagasse, etc. as possible alternate
fuel in place of fossil fuel like coal, subject
to their consistent availability. There
cannot be easy flight of Cement Industry
to other locations because of the very
nature of the process, the machinery used
and the heavy capital required to install a
unit of cement manufacture.
CMA strongly requested the authorities to
include the Cement Industry for being
allowed incentives under “Fiscal
Incentives for Industrial Promotion-2013”
Scheme and to remove “Manufacture of
Cement” from the Negative list.
INDUSTRIAL RELATIONS
The Managing Committee is happy to
report that the Labour-Management
Relations in Member Companies
continued to be cordial, harmonious and
healthy during the year under review.
The Memorandum of Settlement (MOS)
dated 11.2.2011 signed between the CMA
and Cement Workers’ Federations and
Central Trade Unions which was valid for
a period of 4 years from 01.04.2010 to
31.03.2014.
In the months of January/February 2014
INCWF, ABCMMS, AICWF, CITU, HMS, and
LPF had sent to CMA the Notice of
Termination of the National Level
Settlement (dated 11th
February, 2011
which was valid up to 31st
March, 2014)
and submitted fresh Charter of Demands.
The same were circulated to Members in
April, 2014.
As was done hitherto and as advised by
President, CMA, in April, 2014 CMA sent a
communication to members requesting
them to advise CMA clearly whether
they authorize CMA on their behalf to
negotiate with the Workmen
Federations/Unions towards reaching
reasonable wage settlement along with
the name and capacity of the units for
which the authorization is being accorded
and also inform the names of the units
and their capacity to which the
authorization is not being given.
Members were requested to send their
carefully considered option either
favouring or otherwise the industry-wide
negotiation/Settlement.
CMA member cos. having about 67% of
their capacity authorized CMA to
negotiate with the Labour towards
reaching a settlement/understanding with
42
regard to the demands raised by the
workmen Federations/Unions.
Three Wage Negotiation Meetings have
been held with the representatives of
Workmen Federations/Labour Unions.
On behalf of Management S/Shri N.
Srinivasan, Past President, CMA and Vice
Chairman and Managing Director, The
India Cements Ltd., O.P. Puranmalka,
President, CMA, Dr. S. Chouksey, Vice
President, CMA and Shri Prashant Bangur,
Director, Shree Cement Ltd. participated.
The major issues raised by the workmen
representatives were Grant of Interim
Relief of Rs.15,000/- per month w.e.f.
1.4.2014, Coverage of Contract Labour in
MOS and implementation of the MOS to
Grinding Units also; implementation of
MOS by all the cement units who
authorized CMA for Nationwide
Negotiations; Revision of Pay Scales;
Constitution of a Committee to look into
the aspect of Nomenclature for different
categories of workmen; Increase in Rate
of Dearness Allowance etc.
The Managing Committee at its meeting
held on 8th
August, 2014 unanimously
decided that the issue of Interim Relief
cannot be considered. The endeavour
should be to settle the negotiations as
early as possible.
In the meeting held on 13.8.2014 the
Management informed the workmen
representatives that as per decision of
Managing Committee sanctioning of
Interim Relief is not possible. It was also
indicated that expectations of the
Workmen Federations/Unions are very
high. To discuss the demands/issues
raised by the Workmen
Federations/Unions and bring the same to
a moderate level for further discussion by
the Management and the Workmen
representatives a Working Group
comprising of representatives from
Management and Workmen
Federations/Unions was constituted. The
meeting of the Working Group was held
on 30th
August 2014 in New Delhi.
The next meeting of the Management and
the representatives of the Workmen
Federations/Unions was held on 20th
October 2014 in Chennai. While the
workmen representatives wanted an
increase of above Rs.10,000/- per month
besides discussion on neutralization of DA
rate and other related issues, the
Management representatives suggested
an internal discussion amongst the
various labour representatives before
they come up with a set of reasonable
proposition.
The negotiations are continuing.
DEVELOPMENT COUNCIL FOR CEMENT
INDUSTRY
The First Meeting of the reconstituted
Development Council for Cement Industry
was held on 17th
October 2013 under the
Chairmanship of Shri M.A.M.R. Muthiah,
the then President, CMA and MD,
Chettinad Cement Corpn. Ltd. The
meeting was attended by Shri Talleen
Kumar, Joint Secretary, DIPP and officials
53rd Annual Report
43
from concerned Ministries, apart from
representatives from NCBM and Cement
Industry.
The Council discussed and took note of
the major concerns of the Cement
Industry particularly pertaining to (a)
Improving the growth of the Cement
Industry through promotion of Cement
Concrete Roads and White topping;
Affordable housing and Cement Concrete
Canal lining (b) Coal crises in Cement
Industry, Steps to improve Coal
availability to Cement Industry (Linked
Coal/FSA, etc.) and Incentivise increased
usage of AFR (c) Backward linkages for
availability of limestone and the problems
faced by the Cement Industry regarding
limestone (d) Logistics support to Cement
Industry – Rail (e) Data collection and
compilation completely stopped – after
CCI’s Order of June, 2012 and (f)
implementation of the recommendations
of the Working Group on Cement Industry
by concerned Ministries/Departments.
CMA PUBLICATIONS/PERIODICALS
During the year 2013-14, CMA brought
out/ updated the following publications/
periodicals:
� Cement Concrete Roads For Rural
India- A Must
� Cement, Energy and Environment –
Quarterly
� Cement Journal – Quarterly
� Cement News Digest – Weekly
A detailed list of CMA publications
brought out in the last few years is given
in Annexure-VIII.
AUDIT
The Accounts of the Association for the
year ended 31st
March 2014 have been
audited by M/s K.S. Aiyar & Co., Chartered
Accountants.
New Delhi (O.P. Puranmalka)
December 2014 President
44
52nd
Annual Session of CMA – 9th
January 2014
Dr. E.M. Sudarsana Natchiappan, Hon’ble Minister of
State for Commerce and Industry inaugurating the
52nd Annual Session of CMA by lighting auspicious lamp.
To his left Mrs. Vinita Singhania, Past President, CMA
and Managing Director, J.K. Lakshmi Cement Ltd.
(R to L) Shri O.P. Puranmalka, Vice President, CMA, Shri M.A.M.R. Muthiah, President, CMA and Shri N.A. Viswanathan, Secretary General, CMA
Shri M.A.M.R. Muthiah, President, CMA
presenting Bouquet to Chief Guest
Dr. E.M. Sudarsana Natchiappan,
Hon’ble Minister of State for
Commerce and Industry
Shri M.A.M.R. Muthiah, President, CMA delivering Welcome Address
53rd Annual Report
45
Chief Guest Dr. E.M. Sudarsana Natchiappan, Hon’ble Minister of State for
Commerce and Industry, Govt. of India,
delivering Inaugural Address
Chief Guest, Dr. E.M. Sudarsana Natchiappan,
Hon’ble Minister of State for Commerce and Industry
releasing CMA Publication “Cement Concrete Roads for Rural India - a Must”
A view of participants at
the 52nd Annual Session
46
LIST OF ANNEXURES
ANNEXURE-I Pan India Performance of Cement Industry
ANNEXURE-II Chairmen/Co-Chairmen of CMA Committees
ANNEXURE-III Month-wise Coal Receipts against FSA/Linkage
ANNEXURE-IV Procurement and Consumption of Fuel including for
Captive Power Plants
ANNEXURE-V Cement and Clinker Loading – Railway Zone-wise
ANNEXURE-VI List of Workshops/Seminars on Cement Concrete
Technology Participated/Sponsored by CMA
ANNEXURE-VII List of Presentations/Meetings regarding Cement
Concrete Roads and White-Topping
ANNEXURE-VIII List of CMA Publications/Periodicals
*****
53rd Annual Report
47
ANNEXURE-I
PAN INDIA PERFORMANCE OF CEMENT INDUSTRY (Information collected directly and indirectly from different sources by CMA)
(Mn.t)
Year
Capacity at
the Year End
Cement
Production
VII Plan
1989-90 (Terminal Year) 61.74 45.42
Annual Plans
1990-91 64.55 48.90
1991-92 66.98 53.61
VIII Plan
1992-93 70.61 54.08
1993-94 77.38 57.96
1994-95 84.22 62.35
1995-96 96.18 69.64
1996-97 105.68 76.22
IX Plan
1997-98 110.93 83.16
1998-99 116.98 87.91
1999-00 120.16 100.45
2000-01 133.04 100.11
2001-02 146.04 106.90
X Plan
2002-03 150.48 116.35
2003-04 157.05 123.50
2004-05 164.70 133.57
2005-06 171.10 147.81
2006-07 178.89 161.64
XI Plan
2007-08 209.20 174.31
2008-09 232.54 187.60
2009-10 294.32 217.44
2010-11 323.02 227.80
2011-12 340.44 247.45
XII Plan
2012-13 350.00 * 248.23 @
2013-14 360.00 * 255.57@
@ From website of the Office of the Economic Advisor, DIPP
* From published Articles and News Reports
48
ANNEXURE-II
CHAIRMEN/CO-CHAIRMEN OF CMA COMMITTEE
CMA COMMITTEE ON COAL MATTERS
Shri Arun Daga Chairman
Sr. Vice President
(Central Procurement Cell)
UltraTech Cement Ltd
Shri C.G. Sudarshan Co-Chairman
General Manager (Mtls.)
The Ramco Cements Ltd
(Formerely known as Madras Cements Ltd)
CMA COMMITTEE ON RAILWAY MATTERS
Shri Rajeev Mehta Chairman
Executive President
UltraTech Cement Ltd
Shri Sunil Agarwal Co-Chairman
Sr. Vice President (Mktg.)
JK Lakshmi Cement Ltd
CMA FINANCE/LEGAL MATTERS COMMITTEE
Shri K.C. Birla Chairman
Sr. Executive President &
Chief Financial Officer
UltraTech Cement Ltd
Shri Ajai Jain Co-Chairman
Country Head - Legal & Secretarial
Lafarge India (P) Ltd
CMA TECHNICAL COMMITTEE
Shri S.K. Wali Chairman
Wholetime Director
JK Lakshmi Cement Ltd
Shri L. Rajasekar Co- Chairman
Executive President
(Technology & Research Cell)
UltraTech Cement Ltd
53rd Annual Report
49
CMA ENERGY TASK FORCE
(Part of Technical Committee)
Shri D. Sivagurunathan Chairman
Advisor (Technical)
The India Cements Ltd
Shri R. Bhargava Co-Chairman
Vice President (R&D)
Shree Cements Ltd
CMA ENVIRONMENTAL TASK FORCE
(Part of Technical Committee)
Shri L. Rajasekar Chairman
Executive President
(Technology & Research Cell)
UltraTech Cement Ltd
Shri P.L. Subramaniam Co-Chairman
Executive President (Operations)
The India Cements Ltd
*****
50
ANNEXURE-III
MONTH-WISE COAL RECEIPT AGAINST FSA/LINKAGE (2009-10 to 2013-14)
(Mn.t.)
Month 2013-14 2012-13 2011-12 2010-11 2009-10
April 0.87 0.85 0.97 0.90 0.91
(1.30) (1.36) (1.31) (1.18) (1.15)
May 0.89 0.98 0.92 0.96 0.86
(1.30) (1.36) (1.31) (1.18) (1.15)
June 0.82 0.95 0.94 0.92 0.83
(1.30) (1.36) (1.31) (1.18) (1.15)
July 0.80 0.92 0.90 1.06 0.92
(1.30) (1.37) (1.31) (1.18) (1.23)
August 0.66 0.75 0.92 1.15 1.00
(1.30) (1.37) (1.32) (1.18) (1.23)
September 0.78 0.76 0.74 1.02 0.85
(1.30) (1.37) (1.32) (1.18) (1.23)
October 0.72 0.92 0.65 1.24 0.98
(1.30) (1.37) (1.32) (1.28) (1.23)
November 0.71 0.81 0.85 1.01 0.95
(1.30) (1.37) (1.34) (1.28) (1.23)
December 0.72 0.99 0.97 0.97 0.78
(1.30) (1.37) (1.34) (1.28) (1.23)
January 0.79 0.90 0.80 1.03 0.89
(1.30) (1.37) (1.34) (1.30) (1.22)
February 0.63 0.75 0.82 0.73 0.93
(1.30) (1.37) (1.34) (1.30) (1.22)
March 0.83 0.80 0.97 0.91 0.89
(1.30) (1.37) (1.34) (1.30) (1.22)
Total 9.22 10.38 10.45 11.90 10.79
(15.60) (16.41) (15.90) (14.82) (14.49)
Figures in brackets pertain to FSA Quantity/Linkage
There may be small difference in figures indicated elsewhere due to rounding off.
53rd Annual Report
51
ANNEXURE-IV
PROCUREMENT AND CONSUMPTION OF FUEL INCLUDING
FOR CAPTIVE POWER PLANTS (1992-93 to 2013-14)
(Mn.t.)
Year
Procurement
Total
Procurement
Actual Fuel
Consumption Receipt
against
Linkage
E-auction/
Open
Market
Imported
Coal
Lignite, Pet
Coke and
other Fuel
VIII Plan
1992-93 10.49 1.27 0.09 0.80 12.65 12.05
1993-94 10.34 0.86 0.12 0.70 12.02 12.78
1994-95 10.28 2.32 0.71 0.80 14.11 13.29
1995-96 10.06 2.80 1.30 0.80 14.96 14.25
1996-97 10.45 2.48 1.65 0.70 15.28 15.03
IX Plan
1997-98 9.61 1.62 3.52 0.42 15.17 14.98
1998-99 8.24 0.77 4.66 0.20 13.87 13.98
1999-00 9.01 0.63 6.04 0.05 15.73 15.42
2000-01 9.74 0.79 4.40 0.42 15.35 15.37
2001-02 11.09 0.87 3.37 0.96 16.29 15.81
X Plan
2002-03 12.35 0.77 3.66 1.09 17.87 17.83
2003-04 13.35 1.03 3.18 1.52 19.08 18.85
2004-05 14.84 1.27 3.63 2.63 22.37 21.21
2005-06 14.81 1.55 3.40 2.98 22.74 22.39
2006-07 14.43 2.94 4.96 2.92 25.25 25.02
XI Plan
2007-08 14.56 5.00 6.08 3.20 28.84 27.33
2008-09 14.29 6.17 6.97 2.77 30.20 29.57
2009-10 10.79 4.36 6.95 4.15 26.25 25.80
2010-11 11.90 4.92 8.48 3.54 28.84 28.06
2011-12 10.45 4.50 9.40 5.46 29.80 28.30
XII Plan
2012-13 10.38 3.93 9.27 6.24 29.82 27.37
2013-14 9.22 3.92 9.08 7.71 29.93 28.85
52
ANNEXURE-V
CEMENT/CLINKER LOADING - RAILWAY ZONE-WISE
(Mn.t.)
Zones 2013-14 2012-13 2011-12
Central 6.62 7.07 7.75
Eastern 2.48 2.39 2.49
East Central 2.61 2.44 2.21
East Coast 1.00 1.28 1.10
Northern 2.35 2.71 2.99
North Central 2.32 1.68 1.68
North Eastern 0.03 0.02 0.03
Northeast Frontier 0.33 0.06 0.12
North Western 6.75 6.47 8.09
Southern 3.22 2.83 3.98
South Central 28.62 27.63 24.71
South Eastern 8.85 8.51 7.86
South East Central 14.62 13.72 14.42
South Western 0.56 0.81 0.52
Western 7.99 8.16 8.78
West Central 21.46 20.07 20.84
Total 109.81 105.85 107.57
53rd Annual Report
53
ANNEXURE-VI
LIST OF WORKSHOPS/SEMINARS ON CEMENT CONCRETE TECHNOLOGY
PARTICIPATED/SPONSORED BY CMA
� Workshop on “Construction of Cement Concrete Roads - Dos and Don’ts” organized by Indian Concrete
Institute on 23rd
September 2013 at IIT Chennai was supported by CMA by providing publications for
delegates.
� A seminar on “Business Opportunities Related to Industrial Corridors in India” was jointly organized by
Belgian Embassy and PHD Chamber for High Level delegation of Belgian companies and their government
representatives on 25th
November 2013 in New Delhi. CMA officials attended the seminar. CMA suggested
to the President, PHD Chamber vide letter dated 25th
November 2013 to request the Belgian Delegates to
strongly advocate to the Indian Government for adoption of Cement Concrete Roads in place of Bitumen
Roads, in view of the success achieved in their country in this regard.
� Two-day conference on “Infrastructure and Sustainability - A Fresh Approach” was held on the occasion of
Concrete Show India by UBM India Pvt. Ltd. on 13-15 March 2014 at Mumbai. Presentations were made by
the experts from India and abroad. CMA put up a stall in the exhibition in Concrete Show depicting broadly
the growth achieved by the Cement Industry and its major concerns hindering sustainable growth; its
initiatives towards Quality, Environmental Health and Safety, Corporate Social responsibility; CMA’s
initiatives for encouraging adoption of Cement Concrete Roads, Advantages of Cement Concrete Roads/
White-Topping etc. More than 1000 participants visited CMA stall.
� Seminar on “Concrete Roads and White-Topping” was organized by Indian Concrete Institute on 24th
March
2014 at Bhopal. Madhya Pradesh Public Works Department, M.P Rural Engineering Services Department and
Madhya Pradesh Rural Road Development Authority (MPRRDA) were the supporting organizations. The
seminar was supported by CMA by providing its publications to the delegates.
� Indian Concrete Institute & UltraTech Cement Ltd. organized a Technical Lecture for Engineers of Chennai
Municipal Corporation on “Quality Control and Maintenance of Cement Concrete Roads” on 25th
July 2014
at Chennai. CMA supported the event by providing its publication “White-Topping of Roads-Concrete
Overlay Technology” for the participants.
****
54
ANNEXURE-VII
LIST OF PRESENTATIONS/MEETINGS REGARDING
CEMENT CONCRETE ROADS AND WHITE-TOPPING
� On behalf of Cement Industry and CMA Dr. L.R. Kadiyali, a renowned Highway Expert had an opportunity in
October 2013 to present the case for adoption of Cement Concrete Road to the Hon’ble Minister of Road
Transport & Highways at Indian Roads Congress, New Delhi. Hon’ble Minister was impressed and indicated
that the Ministry will favour Cement Concrete Roads.
� During the discussion at the Associations’ Council meeting of CII suggestions were invited as to how to bring
the economy back on rail; reduce the current deficit; improve the foreign exchange etc. CMA responded to
the President of CII, Shri Ajay S Shriram by D.O. letter dated 4th
October 2013 that construction of Cement
Concrete Roads will obviate the use of petroleum crude resulting in saving of foreign exchange required to
import crude oil. CMA requested him to also take up the Recommendations of 95th Report of Department
Related Parliamentary Standing Committee (DRPSC) on Commerce and those in the Report on Working
Group on Cement Industry for the 12th
Five Years plan 2012-17 for construction of Cement Concrete Roads,
with the Sr. officials of concerned Ministry/Departments in centre and states.
� During an interaction of Shri H.M. Bangur, Managing Director, Shree Cement Ltd. with Shri A.K. Sinha,
Advisor, Uttar Pradesh State Highway Authority (UPSHA) at New Delhi, Shri A.K. Sinha evinced interest in
Cement Concrete Roads in UP. To take the matter forward, CMA has arranged a Presentation on “Cost
effective solutions for the Road Pavements for UP” on 27th
November 2013 at Lucknow.
The presentation was made by Dr. L. R. Kadiyali, a renowned Highway Expert wherein Shri Mukul Singhal,
IAS, Chief Executive Officer, UP Expressway Industrial Development Authority (UPEIDA)/ UP State Highway
Authority (UPSHA) and his team of Engineers were present. Engineers from PWD and Lucknow Development
Authority also participated in the Presentation.
� Construction of 48 Km stretches of Cement Concrete Road was sanctioned under Indo-Nepal Border Road
Project in the three district of Lakhimpur kheri, Siddharth Nagar and Maharaj Ganj in UP. On the request of
Chief-Engineer-in-Charge, Indo-Nepal Border Road Project, Public works Department, Lucknow, CMA
arranged a presentation on “Design, Construction Methodology and Quality Control aspects of Cement
Concrete Roads” on 21st
December 2013 at Lucknow for the Engineers involved in the construction of this
Project.
Shri Binod Kumar, Scientist, CRRI, New Delhi made a detailed Presentation on the above subject on 21st
December 2013. Engineer-in-Chief and Chief-Engineer-in-Charge of the Project were highly impressed by the
presentation.
53rd Annual Report
55
� CMA organized a Meeting and Presentations for the Engineers of CCL and CMPDIL on 23rd
January 2014 at
CMPDIL Ranchi.
Dr L.R. Kadiyali, Shri A.K. Jain made Presentations on “Advantages & Cost Economics of Concrete Vs
Bitumen Pavements” and “Methodology of construction of Cement Concrete Roads/White-Topping”
respectively. Shri Ram Avtar, Consultant, CMA explained the application of a software developed by Dr L.R.
Kadiyali for CMA to find design and cost comparison of Concrete and Bituminous Pavements. Sr. Engineer
from both the organizations participated in the Presentations and detailed interactive session. CMA team
also met Shri D.K. Ghose, Director Technical/ Engineering, CMPDIL, and Shri A.K. Debnath, CMD, CMPDIL and
apprised them that for Coalfield area roads on which mostly heavy axle load traffic ply Cement Concrete
Roads are most economical option. The Director & CMD of CMPDIL advised their Engineers to prepare
comparative cost analysis for their future projects to enable the organization to take decision on the option
between Bituminous and Concrete Pavements.
� CMA organized a meeting and Presentation for the Civil Engineers/Staff Officers (Civil) of WCL on 20th
March
2014 at Nagpur. Dr L. R. Kadiyali & Shri A.K. Jain made Presentations on “Advantage & Cost Economics of
Concrete vs Bitumen Pavements” and “Methodology of construction of Cement Concrete Roads/ White-
Topping” respectively. Shri Lalit Kumar Jain, Consulting Structural Engineer also made a presentation about
the ongoing projects on Cement Concrete Roads in Nagpur region. He discussed the problems encountered
due to black cotton soil prevalent in the region and the solutions to overcome this problem. Civil Engineers/
staff officers actively participated in the presentation and detailed interactive session.
*****
56
ANNEXURE-VIII
LIST OF CMA PUBLICATIONS/PERIODICALS
Periodicals
� Cement, Energy and Environment – Quarterly Journal
� Cement Journal – Quarterly
� Cement News Digest – Weekly
� CMA Directory (Annual)
� Indian Cement Industry – Statistics (Annual)
� Basic Data on Indian Cement Industry (Annual)
Cement Concrete Roads
� Cement Concrete Roads For Rural India- A Must (Dec.2013)
� 165 km Yamuna Expressway in Cement Concrete through PPP Mode in Uttar Pradesh (Nov.2012)
� White-Topping of Roads—Concrete Overlay Technology (Nov. 2011)
� Cement Concrete Road Construction - DOs and DONTs (May.2011)
� City Concrete Roads …. (Modified and Enlarged) (Jun.2010)
� Cement Concrete Roads – A Long Lasting Gift to Nation (Jun.2010)
� Handbook on Cement Concrete Roads (Mar.2010)
� Four Laning of Satara-Kolhapur-Kagal, NH4 (Revised and Updated) (Mar.2007)
� Cement Concrete Pavements for City Roads, Bus Stands & Depots (Mar.2003)
� India's First Access Controlled Expressway - Mumbai-Pune (Oct.2001)
� Handbook of Ready Mixed Concrete (Jul.2001)
� Fuel Savings on Cement Concrete Pavements (2000)
Buildings
� Construction, Maintenance and Upkeep of Concrete Buildings (Oct.2009)
� Building Lasting Homes (Oct.2008)
� Cement in Service of The Nation (Jan.2006)
Canal Lining
� Cement Concrete Canal Lining (Feb.2009)
� Handbook on Cement Concrete Canal Lining (Jun.1998)
Consumer Guide
� Cement for Construction – A Consumer Guide (Jan.2008)
(In Different Languages – English, Hindi, Tamil, Telugu, Malayalam,
Bengali, Marathi, Kannada, Punjabi and Gujarati)
*****
Stopped publishing after Competition
Commission of India’s Order of 2012
53rd Annual Report
57
MEMBER COMPANIES OF CEMENT MANUFACTURERS’ ASSOCIATION
1. Anjani Portland Cement Ltd
Anjani Cement Centre
Plot No. 7 & 8
D.No.8-2-248/1/7, Nagarjuna Hills
Main Road, Punjagutta
Hyderabad - 500 082 (A.P.)
2. Bagalkot Cement & Inds.Ltd
Stadium House, Block No 1, 6th floor,
Veer Nariman Road, Churchgate.
Mumbai - 400 020
3. Binani Cement Ltd
601, Axis Mall, 6th Floor, Block – C,
Plot No.CF9, Action Area – 1
New Town, Rajarhat
Kolkata - 700 156
4. Birla Corporation Ltd
(Cement Division)
Birla Building
9/1, R.N. Mukherjee Road,
Kolkata - 700 001
5. Cement Corporation of India Ltd
(A Govt. of India Enterprise)
Scope Complex, Core No. 5
7, Lodhi Road,
New Delhi - 110 003
6. Cement Manufacturing Co.Ltd
Village Lumshnong, P.S. Khliehriat
Distt. Jaintia Hills,
Meghalaya – 793 200
7. Century Textiles & Industries Ltd
Century Cement
Maihar Cement
Manikgarh Cement
Century Bhawan
Dr. Annie Besant Road,
Mumbai - 400 025
8. Chettinad Cement Corporation Ltd
Rani Seethai Hall Building
Post Box No.748,
603, Anna Salai,
Chennai - 600 006
9. Dalmia Cement (Bharat) Ltd
Dalmiapuram - 621 651
Distt. Tiruchirapalli,
Tamil Nadu
10. Gujarat Sidhee Cement Ltd
Siddhigram - 362 276
Off. Veraval Kodinar Highway
Taluka Veraval, Distt. Junagarh,
Gujarat
11. Heidelberg Cement India Ltd
9th Floor, Tower-C, Infinity Towers,
DLF Cyber City, Phase-II
Gurgaon, Haryana 122002
12. The India Cements Ltd
“Dhun Building”
827, Anna Salai,
Chennai - 600 002
13. J.K. Cement Ltd
Kamla Tower
Kanpur - 208 001
Uttar Pradesh
14. Jaiprakash Associates Ltd
(Cement Division)
Sector – 128, Noida 201 304, (U.P.)
15. Jammu & Kashmir Cements Ltd
(A Govt. of J&K Undertaking)
Nawa-I-Subh Complex,
Zero Bridge, P.Box No. 149
Srinagar - 190 001
16. JK Lakshmi Cement Ltd
Jaykaypuram – 307 019
Distt. Sirohi,
Rajasthan
17. The K.C.P. Ltd
Ramakrishna Buildings
2, Dr. P.V. Cherian Crescent Egmore, Chennai - 600 008
18. Kalyanpur Cements Ltd
2 & 3, Dr. Rajendra Prasad Sarani
Kolkata - 700 001
19. Kesoram Industries Ltd
Kesoram Cement
Vasavadatta Cement
9/1, R.N. Mukherjee Road,
Kolkata - 700 001
20. Khyber Industries (P) Ltd
Khayam Road, Nowpora,
Srinagar - 190 001
Jammu & Kashmir
58
21. Lafarge India Pvt. Ltd
Crescenzo Building,
B-Wing, 10th Floor,
C-38 & C-39, G Block,
Bandra Kurla Complex,
Bandra (East),
Mumbai- 400 051
22. Malabar Cements Ltd
(A Govt. of Kerala Undertaking)
Walayar P.O.,
Palakkad Distt. - 678 624, Kerala
23. Mangalam Cement Ltd
Adityanagar, Morak - 326 520
Distt. Kota
(Rajasthan)
24. Mawmluh-Cherra Cements Ltd
(A Govt. of Meghalaya Undertaking)
Taxation Building, (Near Raj Bhawan)
Shillong - 793 001,
Meghalaya
25. Meghalaya Cement Ltd
Village Thangskari, P.O. Lumshnong,
Distt. Jaintia Hills,
Meghalaya - 793 200
26. My Home Industries Ltd
9th Floor, Block-3,
My Home Hub, Madhapur,
Hyderabad - 500 081
27. OCL India Ltd
Rajgangpur - 770 017
Distt. Sundergarh,
Odisha
28. Orient Cement Ltd
(Prop: Orient Paper & Inds. Ltd)
Bhubaneswar – 751 012,
Odisha
29. Panyam Cements & Mineral Inds Ltd
C-1, Industrial Estate,
Bommalasatram, Nandyal,
Kurnool Distt.,
Andhra Pradesh - 518 502
30. Penna Cement Inds.Ltd
Plot No.703, Sriniketan Colony,
Road No.3, Banjara Hills,
Hyderabad - 500 034
31. Prism Cement Ltd
305, Laxmi Nivas Apartments
Ameerpet,
Hyderabad - 500 016 (A.P.)
32. Rain Cement Ltd
(Formerly Rain Commodities Ltd)
Rain Centre, 34, Srinagar Colony,
Hyderabad –500 073 (A.P.)
33. The Ramco Cements Limited
(Formerly Madras Cements Ltd)
Ramamandiram, Virudhunagar Distt.
Rajapalaiyam - 626 117,
Tamil Nadu
34. Reliance Cement Company Pvt. Ltd.,
H. Block, 1st Floor,
Dhirubhai Ambani Knowledge City,
Navi Mumbai – 400 710.
35. Sanghi Inds.Ltd
Sanghinagar–501 511
R.R.Dist.,
Andhra Pradesh.
36. Saurashtra Cement Ltd
Near Railway Station,
P.O. Ranavav - 360 560,
Gujarat
37. Shree Cement Ltd
Bangur Nagar, Post Box No.33,
Beawar - 305 901
(Rajasthan)
38. Shree Digvijay Cement Co.Ltd
(A Votorantim Group Company)
P.O. Digvijaygram – 361 140
Via Jamnagar, (Gujarat)
39. Shriram Cement Works
(A unit of DCM Shriram Ltd.)
6th Floor, Kanchenjunga Building,
18, Barakhamba Road,
New Delhi - 110 001
40. Tamil Nadu Cements Corp. Ltd
(A Govt. of Tamil Nadu Undertaking)
LLA Building, 2nd Floor,
735, Anna Salai,
Chennai - 600 002
41. UltraTech Cement Ltd
‘B’ Wing, Ahura Centre,
2nd Floor, Mahakali Caves Road
Andheri (E), Mumbai - 400 093
42. Zuari Cement Ltd
(Italcementi Group)
Krishna Nagar, Yerraguntla - 516 311
Kadapa Distt,
Andhra Pradesh
CEMENT MANUFACTURERS' ASSOCIATION
SECRETARIAT
Secretary General Shri N.A. Viswanathan
Acting Secretary Shri S.K. Dalmia
Joint Secretary Shri S.V. Joshi
Shri N.K. Pande
Sr. Dy. Secretary Shri Jainender Kumar
Shri H.K. Panchal
Shri Rakesh Gupta
EDP Manager Shri Piyuesh Aggarwal
Sr. Assistant Secretary Shri N.Y.R. Sampath Kumar
Assistant Secretary Shri N.S. Pawar
Shri C.S. Pant
Technical Officer Shri K.K. Roy Chowdhury
AUDITORS
Messrs K.S. Aiyar & Co.
Chartered Accountants
Corporate OfficeCorporate OfficeCorporate OfficeCorporate Office
CMA Tower, A-2E, Sector 24, Noida -201 301 (U.P.) Tel: 0120-2411955, 2411957, 2411958, 2411764, Fax: 0120-2411956 Email: [email protected]
Mumbai OfficeMumbai OfficeMumbai OfficeMumbai Office
Express Building, 1st Floor, Indian Merchants’ Chamber Marg, Churchgate, Mumbai - 400 020 Tel: 022 -22049691, 22851304, Fax: 022 -22040582 Email: [email protected], [email protected]
Hyderabad OfficeHyderabad OfficeHyderabad OfficeHyderabad Office
3rd Floor, 36th Square, Plot No.481, Road No.36, Jubilee Hills, Hyderabad 0- 500 034. Tel: 040-23553378 Email: [email protected]
Registered OfficeRegistered OfficeRegistered OfficeRegistered Office
Vishnu Kiran Chamber, 2142-47, Gurudwara Road, Karol Bagh, New Delhi – 110 005 Tel: 011- 28753206, 28751307, Fax: 011-28758476
CEMENT MANUFACTURERS’ ASSOCIATIONCEMENT MANUFACTURERS’ ASSOCIATIONCEMENT MANUFACTURERS’ ASSOCIATIONCEMENT MANUFACTURERS’ ASSOCIATION (Website : www.cmaindia.org)