71
Shri H.M. Bangur, President, CMA (From July 2007)
Past Presidents of Cement Manufacturers’ Association
Shri Dharamsey M. Khatau 1961 to 1964
Shri G.D. Somani 1965 to 1967
Shri V.H. Dalmia 1968 to 1969
Shri R.D. Shah 1970 to 1973
Shri P.K. Mistry 1974 to 1976
Shri A.K. Jain 1977 to 1978
Shri R.P. Nevatia 1979 to 1980
Shri S. Krishnaswamy 1981 to Aug’82
Shri V.L. Dutt Oct’82 to Oct’83
Shri J.R. Birla Nov’83 to Mar’87
Shri M.H. Dalmia Mar’87 to Jul’89
Shri M.N. Mehta Jul’89 to Jul’91
Shri N. Srinivasan Jul’91 to Aug’94
Shri M.C. Bagrodia Aug’94 to Sep’96
Shri N.S. Sekhsaria Sep’96 to Jun’98
Shri A.L. Kapur Jun’98 to Mar’99
Shri Y.H. Dalmia Mar’99 to Aug’99
Shri M. Karnani Aug’99 to Oct’00
Shri T.M.M. Nambiar Oct’00 to Oct’02
Shri B.L. Jain Oct’02 to Sep’04
Shri N. Srinivasan Sep’04 to Dec.06
Shri Manoj Gaur Dec’06 to Jul’07
INDIAN CEMENT INDUSTRY : SOME FACTS
� The Industry recorded an exponential growth with the introduction
of partial decontrol in 1982 culminating in total decontrol in 1989.
� The capacity, which was 29 Mn.t in 1981-82, rose to 219 Mn.t at
the end of FY09.
� While it took 8 decades to reach the 1st 100 Mn.t capacity, the 2nd
100 Mn.t was added in just 10 years.
� India ranks second in world cement producing countries.
� The Industry has been facing a chronic problem of insufficient
availability of the main fuel coal, driving the manufacturers to
resort to use of alternatives at steep cost.
� Taxes and Government levies on cement are high compared to
countries in Asia pacific region.
� Cement Industry, which was branded as the highest polluter of
environment, now meets the pollution standards, and no longer a
polluter today.
� Contributes to environmental cleanliness by consuming hazardous
wastes like Fly Ash (around 30 Mn.t) from Thermal Power Plants
and the entire 8 Mn.t of Slag produced by Steel manufacturing
units.
� As a part of Corporate Social Responsibility (CSR), the Cement
Industry employs around one lakh people and takes care of the
social needs not only of the employees but also adopts several
villages around the factories providing free drinking water,
electricity, medical and educational facilities.
� The Cement Industry produces a variety of cement to suit a host of
applications matching the world’s best in quality.
� Exports Cement/Clinker to around 30 countries across the globe and
earns precious foreign exchange.
� The core sector Cement Industry deserves due support from the
Government by avoiding imposition of high levies and duties,
making available various inputs like fuel, power, transport etc. at
reasonable prices and in required quantities and help its growth and
improve competitivity both in domestic and international markets.
CEMENT MANUFACTURERS' ASSOCIATION
PRESIDENT Shri H.M. Bangur
VICE PRESIDENT Mrs. Vinita Singhania
MEMBERS OF THE MANAGING COMMITTEE
Shri Sumit Banerjee
Shri J. Datta Gupta
Shri Ramit Budhraja
Shri D.S. Ghai
Shri Ravinder Mohan
Shri N.P. Ghuwalewala
Shri J.C. Toshniwal
Shri Ajay Kapur
Shri Kamlesh Sharma
Shri R.S. Lodha (Upto Oct08)
Shri Harsh V. Lodha (From Dec08)
Shri B.R. Nahar
Shri M.C. Gupta
Shri Saurabh Misra
Shri O.P. Puranmalka
Shri B.L. Kalwar
Shri R. Srinivasan
Shri T.S. Raghupathy
Shri Rakesh Singh
Ms. Rupa Gurunath
Shri S.S. Anand
Shri Sunny Gaur
Shri R.G. Bagla
Shri S. Chouksey
Mrs. V.L. Indira Dutt
Shri K.C. Jain
Shri Uday Khanna
Shri Kamal Kishore
Shri P.S. Bakshi
Shri Bhagwat Pandey
Shri M.S. Gilotra
Shri M.K. Singhi
Shri K.K. Kaul
Dr. K. Satyagopal, IAS
Shri S.K. Maheshwari
Shri K.C. Birla
Shri Puneet Dalmia
Shri Alok Sanghi
Shri Krishna Srivastava
PERMANENT INVITEES
Shri Manoj Gaur
Shri N. Srinivasan
Shri B.L. Jain
Shri T.M.M. Nambiar
Shri M. Karnani
Shri Y.H.Dalmia
Shri A.L. Kapur
Shri N.S. Sekhsaria
Shri M.N. Mehta
Shri M.H. Dalmia
Shri V.L. Dutt
SECRETARY GENERAL Shri N.A. Viswanathan
i
FOREWORD
The year 2008-09 has been a year of recession experienced by most of the world
economies as a result of global financial meltdown. Several economies witnessed a
steep drop while some countries recorded growth of less than 1%. India, however, was
an exception. While a 9% growth was sustained during the three preceding years, the
year 2008-09 witnessed a slowdown with an estimated growth of 6.7%.
Industrial production dropped from 8.5% in 2007-08 to less than a third with 2.6% in
2008-09. Similar was the case with manufacturing sector, which also recorded a growth
of 2.6% in 2008-09, less than a third of the previous year 9%. Agriculture sector grew
at 1.6% in 2008-09 against 4.9% in the previous year.
Considering the performance of the Industrial and Manufacturing sector, the Cement
Industry’s performance in 2008-09, was appreciable with a robust growth of 7.9%,
marginally lower than the previous year’s 8.1%. The two Stimulus Packages announced
by the Government to support growth of real estate and infrastructure helped maintain
growth in cement demand and has reflected in the growth of construction sector at
8.9%, just around 2% lower than 10.9% in 2007-08. With the Union Budget 2009-10
giving a major thrust to infrastructure development, simultaneously according high
priority to inclusive growth by increased allocation to on-going programmes of rural
development and introducing additional programmes to uplift rural economy and
standard of living of the rural populace, Cement Industry looks forward to a 10% growth
in the following years.
The Working Group on Cement Industry for the XI Five Year Plan has estimated a
production of 268 million tonnes needing a capacity of 298 million tonnes to meet the
growing demand by the terminal year 2011-12. The Cement Industry is confident of
achieving this target. In fact, around 51 million tonnes capacity has been added during
the first two years 2007-09 of the Plan and rest of the capacities are already in pipeline.
However, the pace of capacity additions may slow down because of non-availability of
land, higher input and interest costs.
Regarding coal, the main fuel, CMA continued to interact with various Govt. authorities
on coal-related issues such as Fuel Supply Agreements (FSAs), sanction of long-term
linkages, e-auction, allocation of captive blocks, coal imports etc. to step up coal
supplies to Cement Industry. CMA’s delegation had Meetings with Secretary and
Additional Secretary, Ministry of Coal (MOC), Secretary (DIPP), Ministry of Commerce
ii
and Industry, Chairman, Standing Linkage Committee (SLC), Secretary (Coordination),
Cabinet Secretariat, Chairman and Director (Mktg.), Coal India Ltd (CIL). This resulted
in getting timely attention to the problems of Cement Industry and finding solutions.
In respect of Rail transportation, CMA continued to bring to the notice of the Senior
Officials of the Railways, including its Chairman and Hon’ble Minister of Railways, the
problems being confronted by the cement plants and possible remedial measures.
Wagons supply position to the Cement Industry was more or less comfortable during the
year, though some cement plants in certain Railway Zones did not get the required
number of Rakes/Wagons, including two point and mini rakes, disrupting movement of
cement and other input materials.
CMA’s ceaseless efforts resulted in Railways’ assuring to hold regular monthly meetings
with its representatives favourably consider the suggestion regarding fixing feasible and
practical unloading hours at the terminals, restoration of shunting time permitted to the
cement plants earlier, among others.
The Managing Committee is hopeful that Railways would consider all the suggestions of
the Cement Industry favourably and also honour their assurances.
Cement is a high power intensive Industry. Uninterrupted power is essential for cement
production, being a continuous process. Most of the cement units have installed captive
power generation facilities – DG, Thermal and also Wind Power - a recent addition is
power generation through Waste Heat Recovery (WHR). Though the State Grid Power
supply is not up to the required quality with interruptions in availability, several States
have made it mandatory to purchase a certain percentage of total power consumption
from Renewable Energy (RE) sources under the Renewable Purchase Obligation (RPO)
and covered by National Electricity Policy (2005).
CMA strongly took up with the Ministry of Power the issue of exemption of Captive
Power from the RPO scheme.
CMA has been engaged in promoting green drive in the cement industry in a big way.
CMA sponsored and participated in an international conference & exposition in cement
technology under the theme “Make Indian Cement Plants World Class in Green”. CMA
continued to take up matters with the Central / State Pollution Control Boards regarding
various issues faced by the industry like permission for use of Hazardous wastes in
cement kilns, fixing emission norms etc.
iii
CMA and its member corporates have undertaken various initiatives in the field of
Climate Change to reduce their carbon footprint. Cement industry has done significant
work towards a low carbon economy in close association with international
organizations like the World Business Council for Sustainable development (WBCSD)
and Cement Sector Task Force of APP6 Countries on Clean Development and Climate.
CMA has done commendable research and development work in the field of cement
concrete roads, in association with organization of high repute like National Council for
Cement and Building Materials (NCBM) and Central Road Research Institute (CRRI).
CMA members called upon Shri Kapil Sibal, Hon’ble Minister for Science and
Technology, who evinced keen interest in eco friendly and energy efficient Cement
Concrete roads. Apart from fuel saving and eco friendliness, concrete roads are also
cheaper to construct both on initial cost basis as well as on life cycle basis. It is worth
mentioning that Hon’ble Supreme Court has banned the use of Hot mix bitumen plants
in Delhi because of the pollution caused by them.
CMA also took up with Chief Ministers of all states and UTs as well as Mayors of all
Municipal Corporations urging them to issue guidelines for construction of cement
concrete roads. Letters were also written to Secretary, Ministry of Environment and
Forests and Chairman, Central Pollution Control Board regarding prevention of air
pollution through hot mix plants. Due to the efforts of CMA, a majority of states have
sanctioned several projects involving construction of concrete roads and thereby
contributing to increase in cement demand.
Around 130 million ton of Flyash is generated annually in the country. Out of this only
30% i.e., 39 million ton is recycled and cement industry utilizes almost 75% (30 million
ton) of the total flyash recycled. CMA has been continuously engaged in talks with
Central as well as State Governments and their agencies at various levels to ensure free-
of-cost supply of fly-ash to cement companies. CMA in its communication to the
Government highlighted the fact that the industry has made significant investment of
more than Rs. 900 crores for building infrastructure for collection, handling and storage
of flyash.
On the Export front, the Managing Committee appreciates the continuous efforts made
by CMA through representations, due to which, the ban on Export imposed in April
2008, was completely lifted in December 2008. As a result, exports that witnessed a
34% drop during 2007-08 (from 9.00 million tonnes in 2006-07 to 6.02 million tonnes
in 2007-08), saw a reversal with a marginal increase of 1.3% in 2008-09 (from 6.02
million tonnes to 6.10 million). It was again through the relentless efforts of CMA that
CVD and SAD on Cement Imports abolished earlier, were re-imposed in January 2009.
iv
The year 2008-09 marked Indian Cement Industry’s foray into in the international field
for accessing its performance with the “Best Practices” in energy conservation and waste
utilization with “Best Performers” in the world. The Joint Project with New Energy and
Industrial Technology Development Organization (NEDO), Japan under APP CTF-7 had
taken up competitive study of 3 modern cement plants across the country with similar
plants in Japan. The study threw up encouraging results about the 3 Indian plants
having comparable and even marginally better performance in energy conservation and
in larger recycling of wastes.
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 Chairman, SLC, Joint Secretary, Ministry of Coal; Chairman, Railway Board,
Member Traffic, Additional Member (T), Additional Member (C), Executive Director
Traffic Transportation (S), Executive Director Traffic Transportation (R), Ministry of
Railways; 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, DGFT, for their cooperation.
The contribution and support from Members of the Managing Committee I received
have been invaluable and I express my gratitude to each one of them.
The Officers and Staff of CMA, under the mature guidance and direction of Shri N.A.
Viswanathan, Secretary General, have acquitted themselves credit only with their
dedicated work and I would like to place on record my appreciation of the same. I am
sure that the Secretariat would continue to work with same zeal supporting the Industry.
New Delhi (H.M. Bangur)
September 2009 President
1
CEMENT MANUFACTURERS' ASSOCIATION
48th ANNUAL REPORT 2008-09 (Under Rule 49 - Rules & Regulations of CMA)
The Managing Committee takes great
pleasure in presenting its 48th Annual
Report for the year 2008-09.
THE YEAR AT A GLANCE
Economy
After three years of sustained growth of
9%, the year 2008-09, the second year of
the XIth Plan, witnessed a slowdown with
an estimated growth of 6.5%.
Industrial production recorded a low
growth of 2.6%, similar to that in
2001-02, and less than a third of 8.5%
witnessed in the previous year 2007-08.
Manufacturing sector also recorded a low
of 2.5% against 9% in 2007-08.
Agriculture sector grew at 2.2% against
4.5% in the previous year.
Construction sector, however, posted an
estimated growth of 8.9%, even though
lower than 10.9% in the year 2007-08.
On the external trade front, while exports
recorded a growth of 2.5% far lower than
29.1% seen in 2007-08, there was a
steep drop in the growth of imports to
13% from 35.9% in 2007-08.
Foreign Exchange Reserves during
2007-08 was US$ 299.2 billion and
US$ 241.4 billion (Est) in 2008-09.
Cement Industry
While global slowdown that severely
affected several countries had its
invariable effect on Indian Industrial
production as also on other important
sectors of Indian Economy, it did not
impact the Cement Industry much which
recorded a robust growth of 7.9%,
marginally lower than the previous year’s
8.1%. This was due to the Stimulus
Packages that helped the real estate and
construction activity though not to the
expected level. The cement
consumption during the year 2008-09
grew at 8.5%, lower than the previous
year’s 9.8% by 1.3%.
Outlook: Cement Industry
The Union Budget 2009-10 presented on
6th July 2009 aims at stimulating the
growth by giving a push to higher
infrastructure growth, simultaneously
focusing on rural development in a big
way. Some of the major proposals of the
Budget are cited below:
� Setting up India Infrastructure Finance
Co. Ltd (IIFCL), a special purpose
vehicle for providing long-term
financial assistance to infrastructure
projects. Now total investment in
infrastructure Govt. + Private Sector
is about 4.5% of GDP, which will be
stepped up to 9% of GDP by 2014.
2
� Allocation to National Highways
Authority of India (NHAI) for the
National Highway Development
Programme (NHDP) increased by 23
per cent.
� Allocation under Jawaharlal Nehru
National Urban Renewal Mission
(JNNURM) stepped up by 87 per cent
to Rs.12,887 crore.
� Allocation for housing and provision
of basic amenities to urban poor
enhanced to Rs.3,973 crore including
provision for Rajiv Awas Yojana
(RAY), a new scheme announced.
� Allocation of additional Rs.1,000
crore under Accelerated Irrigation
Benefit Programme (AIBP) increased
by 75 per cent.
� Allocation under National Rural
Employment Guarantee Scheme
(NREGS) increased by 144 per cent to
Rs.39,100 crore.
� Allocation for Bharat Nirman
increased by 45 per cent.
� Allocations under Pradhan Mantri
Gram Sadak Yojana (PMGSY)
increased by 59 per cent to Rs.12,000
crore.
� Allocation under Indira Awas Yojana
(IAY) increased by 63 per cent to
Rs.8,800 crore.
� Allocation of Rs.2,000 crore made for
Rural Housing Fund (RHF) in National
Housing Bank (NHB) to boost the
resource base of NHB for refinance
operations in rural housing sector.
� A New Scheme Pradhan Mantri
Adarsh Gram Yojana (PMAGY) with
an allocation of Rs.100 crore
launched on pilot basis for integrated
development of 1000 villages having
population of scheduled castes above
50 per cent.
� Rs.1,000 crore allocated for
programme for rebuilding the
damaged infrastructure caused due to
cyclone aila in West Bengal.
The Hon’ble Minister for Road Transport
and Highways is seriously considering
building of 12,000 kms. of roads at a cost
of Rs.1 lakh crore giving priority to BOT
contracts to the extent of 60% and with a
target of 20 kms. of construction of road
per day.
The thrust being given by the New
Government to infrastructure which lags
behind, the growth and development of II
tier and III tier cities and the rural
economic development, should give the
required boost to cement demand and
the Cement Industry is expected to grow
at 10% during the next 3 years. In fact,
in the first quarter of FY10 i.e. April to
June 2009, the Industry posted an
average growth of 12.5%.
48th Annual Report
3
PERFORMANCE HIGHLIGHTS – 2008-09 (Excluding Mini and White Cement Plants)
AT A GLANCE
• Capacity at the end of Mar'09 (Mn.t)
(Previous year 197.76 Mn.t)
: 219.17
- Addition in 2008-09 (Mn.t) : 21.41
- Growth, % : 10.83
• Cement Production (Mn.t)
(Previous year 168.31 Mn.t)
: 181.61
- Highest ever in a month (Mar'09) (Mn.t) : 18.13
- Growth, % : 7.90
Clinker Production (Mn.t) (Previous year 129.73 Mn.t)
: 138.77
• Capacity Utilization (%)
(Previous year 94%)
: 88
• Stock at the end of Mar'09
- Cement (Mn.t) (Previous year 1.08 Mn.t)
: 1.09
- Clinker (Mn.t) (Previous year 5.49 Mn.t)
: 5.45
- Highest Clinker Stock in Dec.08 (Mn.t) : 7.38
• Exports
- Cement (Mn.t)
(Previous year 3.65 Mn.t)
: 3.20
- Clinker (Mn.t)
(Previous year 2.37 Mn.t)
: 2.90
• Consumption (Domestic Despatches)
(Previous year 164.03 Mn.t)
: 177.98
• Per Capita Consumption (2008) (kg.) : 156
Mn.t = Million Tonnes
4
Addition to Capacity
A capacity of 21.41 Mn.t was added
during the year 2008-09, the second year
of the XIth Five Year Plan. Of this,
around 81% of the capacity additions
was accounted for by new Greenfield
projects (17.35 Mn.t) while expansions
formed 19% of the capacity added
(4.06 Mn.t). Thus, during the first two
years of the XIth Plan, the capacity
addition was 51.72 Mn.t, which accounts
for 44% of the capacity projected to be
added during the 5 years period of XIth
Plan (2007-12). The Cement Industry is
confident that it would be able to reach
the capacity of 298 Mn.t (including Mini
Plants) targetted by the Working Group
on Cement Industry for the XIth Plan.
Details of capacities added during the
year 2008-09 are given in the Annexure-I.
Cement/Clinker Production
Cement production during the year 2008-09 was 181.61 Mn.t against 168.31 Mn.t in the previous year 2007-08, registering a growth of 7.9%.
Companywise/ Unitwise production performance is given in Annexure-II.
Clinker production during the year under review was 138.77 Mn.t registering a growth of 6.97% over the previous year’s 129.73 Mn.t. Clinker stock in March 2009 was 5.45 Mn.t almost at the same level as that of the previous year’s 5.49 Mn.t.
Annexure-III gives:
� Performance of Cement Industry (Including Mini and White Cement Plants)
� Performance of Cement Industry (Large Plants)
� Regionwise Capacity and Production (Large Plants)
Last Five Years of Cement Industry
2003-04 2008-09 Compound
Growth (%)
Installed Cement Capacity (Mn.t) 145.81 219.17 8.49
Operative Cement Capacity (Mn.t) 138.18 214.13 9.16
Capacity Utilization 82% 88%
Rail Despatches (Mn.t) 39.28 68.33 11.71
% Rail Share of Total Despatches 33.5% 37.7%
PPC Production (Mn.t) 52.13 120.79 18.30
% of PPC to total Cement Production 44.4% 66.5%
PBFS Production (Mn.t) 11.26 15.18 6.16
% of PBFS to total Cement Production 9.6% 8.4%
Coal Receipt against Linkage (Mn.t) 13.35 14.29 1.37
% of Coal Receipt against Requirement 70.8% 48.3%
Cement Production using Captive Power (Mn.t) 46.07 102.59 17.36
% of total Cement Production using Captive Power 39.2% 56.5%
48th Annual Report
5
MEETINGS OF THE MANAGING
COMMITTEE
Five meetings of the Managing Committee were held during 2008-09 to review the industry’s problems and performance.
CMA COMMITTEES
The following Committees were constituted/ reconstituted during the year:
� CMA High Power Committee
� CMA Committee on Coal Matters
� CMA Technical Committee
o Energy Task Force
o Environmental Task Force
� CMA Finance/Legal Matters
Committee
� CMA Committee on Railway Matters
Names of the Chairmen and Co-chairmen of the above Committees are given in Annexure-IV.
In addition to the above-mentioned Committees, CMA, under the leadership of the President, CMA, continued to play a proactive role in highlighting the problems of the Industry before the highest policy makers, from time to time, and in this effort, high-level delegation of CMA met various Top-level Policy Makers and Ministers.
A brief account of the efforts made by these delegations is indicated below:
Meeting with Deputy Chairman,
Planning Commission
A delegation led by President, CMA met Deputy Chairman, Planning Commission on 5th November 2008 to impress upon
him the impact of imported cement affecting the domestic industry and requested him to help re-impose the duties on imported cement to provide for a level playing field to the domestic industry.
Abatement not being provided to Cement Industry against Excise Duty being charged on MRP basis was also brought out during the discussion.
Meeting with Secretary (Revenue)
and Secretary (DIPP)
A delegation led by President, CMA met Secretary (Revenue) and Secretary (DIPP) on 26th November 2008 and apprised them of the problems being faced by the Cement Industry.
Meeting with Hon’ble Minister of
Commerce and Industry
President, CMA along with few other Members met Shri Kamal Nath, Hon’ble Minister for Commerce and Industry on 5th February 2009 and pleaded for Uniform Rate of Excise Duty and Abatement on Excise Duty on Cement, Restoration of Import Duty on Cement, Reduction of Import Duty on Coal and Pet Coke, Sales Tax/VAT on Cement/Clinker to be in line with that of Steel and the need to give boost to Cement Concrete Roads.
PRE-BUDGET MEMORANDUM
CMA, on behalf of the Cement Industry,
submitted its Pre-Budget Memorandum
for the year 2009-10 on 4th June 2009 to
the Hon’ble Finance Minister, covering
various aspects, to sustain a healthy
growth of the Cement Industry.
6
The main proposals/suggestions made in the Pre-Budget Memorandum include:
� Uniform rate of Excise Duty.
� An Abatement of 55%, as recommended by NCAER in their Report of 2005.
� VAT on Cement and Clinker be brought down to 4% in line with Steel and Cement be included in the “Declared Goods”.
� Royalty on Limestone be brought down in line with Iron Ore
� Royalty paid on Limestone be allowed as credit – either as Cenvat credit or as VAT credit and the duty/cess being levied and collected on indigenous coal also be allowed as VAT or Cenvat credit.
� Import Duty on Coal, Pet Coke and Gypsum be abolished - to be in line with the established principle that Import Duty on Inputs should not be higher than on the finished product.
� Import Duty on Cement be restored.
� Fly Ash be supplied to the Cement Industry free of cost.
� Waste Heat Recovery be treated at par with Renewable Energy.
The Cement Industry is hopeful that the Government would give due attention to the suggestions so as to enable the Industry to play a key role in taking the Indian economy towards a higher growth trajectory, as envisaged by the Government.
Managing Committee Meetings
18th December 2008 – Mumbai
Seated on dais (L to R) S/Shri N.A. Viswanathan, Secretary General, CMA, A.L. Kapur, Past President, CMA, H.M. Bangur, President, CMA, Mrs. Vinita Singhania, Vice President, CMA, B.L. Jain, Past President, CMA and M.H. Dalmia, Past President, CMA
Seated on dais (L to R) S/Shri M.H. Dalmia, Past President, CMA, H.M. Bangur, President, CMA, N.A. Viswanathan, Secretary General, CMA and B.L. Jain, Past President, CMA
28th August 2008 – New Delhi
48th Annual Report
7
47th Annual Session of CMA 28th August 2008, New Delhi
Shri H.M. Bangur, President, CMA delivering Welcome Address. Seated on dais (L to R) S/Shri N.A. Viswanathan, Secretary General, CMA, Chief Guest, Ajay Shankar, Secretary (DIPP), Ministry of Commerce and Industry, Mrs. Vinita Singhania, Vice President, CMA and Shashi Ranjan Kumar, Director (DIPP)
Shri Ajay Shankar, Secretary (DIPP), Ministry of Commerce and Industry, addressing the gathering at the Annual Session. Seated on dais (L to R) S/Shri N.A. Viswanathan, Secretary General, CMA, H.M. Bangur, President, CMA, Mrs. Vinita Singhania, Vice President, CMA and Shashi Ranjan Kumar, Director (DIPP)
8
47th Annual Session of CMA 28th August 2008, New Delhi
Shri H.M. Bangur, President, CMA, presenting a Memento to Chief Guest, Shri Ajay Shankar, Secretary (DIPP), Ministry of Commerce and Industry
Sectional view of participants at the Annual Session
48th Annual Report
9
INCREASE IN INPUT COSTS OF
CEMENT
During the year 2008-09, there have been increases in the costs of inputs for cement manufacture comprising wages, cost of fuel, power, petroleum products etc, which together amounted to Rs.18/-per bag. The details are given in Annexure-V.
INFRASTRUCTURE
The three important infrastructure sectors
for the Cement Industry are Coal,
Railways and Power and they play a key
role in the productivity and output of the
Cement Industry. While Coal and Power
are major inputs, Railways provide the
crucial logistics both for inward
movement of coal, gypsum and other
inputs to the factories and outward
movement of cement to distant markets.
All the three are under public sector
management over which industry has no
control and are critical to the Industry’s
growth. A detailed account of the
performance of the three infrastructure
items follows:
Coal
During the year 2008-09, there was regular interaction with various Govt. authorities on coal related issues such as, Fuel Supply Agreements (FSAs), sanction of long-term linkages, e-auction, allocation of captive blocks, coal imports, and stepping up of coal supplies to Cement Industry. CMA’s
delegation had Meetings with Secretary and Additional Secretary, Ministry of Coal (MOC), Secretary (DIPP), Ministry of Commerce and Industry, Chairman, Standing Linkage Committee (SLC), Secretary (Coordination), Cabinet Secretariat, Chairman and Director (Mktg.), Coal India Ltd (CIL). This resulted in getting timely attention to the problems of Cement Industry and finding solutions.
The details pertaining to important issues
are given in the following paragraphs:
Coal Receipt against FSA/Linkage
During the year under review 2008-09,
Industry received 14.29 Mn.t of coal –
2% less than 14.56 Mn.t received during
2007-08. Month-wise coal receipts
against FSA/linkage during the last five
years are given in Annexure-VI.
Total Coal Procurement and
Consumption
The Cement Industry, for meeting its fuel
requirement, in addition to the coal
received against FSA/linkage, also
FUEL CONSUMPTION
14.98
13.98
15.42
15.37
15.81 17
.83
18.85 21
.21
22.39 25
.02
10.45
9.61
8.24 9.0
1 9.74 11
.09 12.35 13
.35 14.84
14.81
14.43
14.56
27.33 29
.57
15.03
14.25
14.29
10.06
0
5
10
15
20
25
30
35
95-96
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
Year
Mn.t
Receipt against Linkage
Actual Fuel Consumption
10
procured imported coal, pet coke, lignite
and coal from open market for use in the
Kilns and Captive Power Plants (CPPs).
The total fuel procurement was 30.20
Mn.t in 2008-09 as against 28.84 Mn.t in
2007-08.
Details of coal receipt against
FSA/linkage, open market purchase,
import of coal, lignite and pet coke
procurement and consumption of fuel are
given in Annexure-VII.
During the early part of 2008-09 (upto
August), the materialization of coal
programme against linkage was very low,
just around 70% because of preferential
coal movement to power sector and
consequently less availability of rakes for
cement plants. Consequent on Secretary
General and CMA representatives
meeting Secretary (Coordination) on
27.08.2008 and making out a case for the
backlog to be made up during the
remaining part of the year, the
materialization improved in subsequent
months i.e. September to March’2009, to
an average of about 83% of FSA quantity.
However, during the 2008-09 the overall
materialization has been about 78% only.
The total fuel consumption during the
year 2008-09 has been 29.57 Mn.t [21.93
Mn.t in Kiln and 7.64 Mn.t in CPPs] as
against 27.33 Mn.t during the year
2007-08.
It will be observed that while the coal
supply through FSA/Linkage was only
14.29 Mn.t, the total fuel consumption of
the Cement Industry was 29.57 Mn.t,
leaving a gap of about 15.28 Mn.t
between the actual requirement and
supply. In percentage terms the linked
coal supply was only 48% of the total
fuel consumption during the year
2008-09.
Coal Imports
The coal imported by Cement Industry
was 6.97 Mn.t during 2008-09. The
trend of coal imports by cement sector is
given in the graph. The rate of import
duty, continues at 5% w.e.f. 2006-07.
Pet Coke
During 2008-09, Cement
Industry consumed 2.41
Mn.t of pet coke.
Some of th e cement plants
have been using pet coke
as fuel in the Kilns as also
in Captive Power Plants
(CPPs) some extent. The
main source of supply of
IMPORT OF COAL
1.30
3.18
1.65
3.52
4.66
6.04
4.40
3.37 3.66 3.63 3.40
4.96
6.08
6.97
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
95-96
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
Year
Mn.t
48th Annual Report
11
pet coke is refineries at
Jamnagar - Reliance
Industries Limited (RIL) and
Panipat - Indian Oil
Corporation (IOC). About
3.00 lakh tonnes of pet
coke was imported from
UAE, Gulf, an increase of
2.00 lakh tonnes over the
previous year. The duty on
imported pet coke,
however, remains at 5%
and Countervailing Duty (CVD) at 14%.
Washed Coal
With the deterioration in the quality of
raw coal over the years, it has become
necessary to beneficiate lower grades of
coal to upgrade the quality for using in
the Kilns. Presently, this is limited to coal
supplies from Korba field and some of the
collieries of Western Coalfields Ltd
(WCL) as also Singareni Collieries Co. Ltd
(SCCL). About 1.50 lakh tonnes of coal
was washed by the Cement Industry in
private coal washeries during the year
2008-09.
It is understood that in future, all new
coal projects with a capacity of 2.5 Mn.t
or more will have washeries as an
integral part of the project.
Lignite
During the year 0.36 Mn.t of Lignite was
used as fuel by the cement plants of
Southern and Western Regions. Some
quantities of Lignite are likely to be used
in future too.
Coal Loading by Rail
The average loading of linked coal during
the year 2008-09 was 1030 wagons FW
per day, as against 1086 FW per day in
2007-08 i.e. a decrease of 56 FW/day
over last year.
Delayed supplies against Allotted Rakes
During the period under report, the
Cement Plants/CPPs faced a serious
problem by way of delayed supplies of
allotted rakes, for various reasons, like
preferential treatment to Power sector or
some other problem at the loading end,
putting the coal supply system into
disarray. The problem of delayed supply
of allotted rakes was not only limited to
supplies of linked programme but also to
supplies against e-auction, thus affecting
coal availability at cement plants as also
blocking huge funds of some of the
cement companies. The matter was taken
up at various levels including Standing
Linkage Committee (SLC) Meetings and
with Railways from time to time.
COAL LOADING
825891
799731
525 605670
809 785
1055 1100 10791086
1030
0
200
400
600
800
1000
1200
1400
95-96
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
Year
FW per day
12
Captive Coal Blocks
The Screening Committee of MOC has
allotted coal blocks to seven Member
Cement Companies (out of total 198
blocks allocated so far).
E-Auction
The New Coal Distribution Policy
(NCDP) provides that the FSAs between
Cement Industry and the Coal Companies
will be signed for 75% of the normative
quantity requirement of the plant. The
actual supply will be, however, still
lower. The cement plants have, therefore,
to procure coal from other sources
including E-auction. However, as the
E-auction is open to all, including the
traders, the cement plants are generally
not able to compete and are obliged to
buy coal from the traders at inflated cost.
Hence, CIL proposes to commence the
system of “Forward E-auction for
Industrial Consumers” including Cement
Industry. In this system, the consumer
will be able to bid for substantial
quantities at a time, which will be
supplied over a period of quarter/year.
Supply of Imported Coal to New
Consumers
NCDP provides that in case the coal
companies are not able to supply
indigenous coal against the FSA quantity,
the shortfall would be made good by the
coal company by supplying imported
coal.
As procurement is a commercial matter,
CMA requested the cement companies to
individually get clarification on the
following points, in advance, on which
CMA had already taken up with the
concerned Authorities:
a) Percentage share of imported coal
proposed to be supplied against FSA
quantity.
b) The price of imported coal, the
source of supply, port of delivery and
the period for which the price will be
valid.
Further, the consumer should have the
privilege to decide on taking imported
coal through the coal company or
directly import.
Sanction of Long Term Linkages of Coal
to New Capacities
To meet the burgeoning demand of
cement in the country, the Industry is in
the process of adding new capacities to
the extent of 70 Mn.t in next 2 to 3 years.
Around 50 Mn.t capacity, by way of
“Expansions and Greenfield Installations”
has already come up during the first two
years of XIth Plan. Most of these plants
have applied for sanction of Long-term
linkages to MOC/SLC (LT) and their
applications are still pending for
consideration and sanction of linkages.
The last SLC (LT) meetings, pertaining to
cement sector, were held on 20.11.2007
for kilns and 20.3.2008 for CPPs. No SLC
(LT) meeting has been held since then.
All new capacities are facing serious
problem regarding allotment of coal.
CMA has taken up the issue with the
MOC/DIPP a number of times to hold an
early meeting of the SLC (LT) so that new
plants start getting coal at the earliest.
48th Annual Report
13
Delay in the Signing of FSAs through
Letter of Assurance (LOA) Route
The long-term linkage committee
meetings held on 20th November 2007
and 20th March 2008 authorized the coal
companies to issue LOAs to a large
number of cement plants and CPPs.
Mostly these pertained to Brownfield
capacities.
As per NCDP, the coal supplies to these
units can commence only after the FSAs
are signed and the FSAs themselves
would be signed only after the prescribed
Milestones, as enunciated in the LOA, are
achieved.
The LOAs have already been received by
cement plants/CPPs and the documents
against the Milestones are being
submitted. The total period allowed for
submission of documents in stages, is 12
months for cement plants and 24 months
for CPPs.
There are 16 Milestones for cement kilns
and 11 for CPPs, and for each one a
completion report is to be submitted with
documentary evidence. However, in
most cases, it is very difficult to comply
with all the specified provisions because
the old records are either not available or
are difficult to retrieve.
Member Units have experienced that
even when documents have been
submitted, further clarifications are being
sought by coal companies. The Cement
Plants feel that such queries are resulting
in avoidable delays.
CMA has taken up the matter with
Chairman CIL, inter-alia, submitting that -
i) The instrument of LOA and
completion of Milestones are meant
to ensure that the coal is supplied to
genuine consumer only, for genuine
use and there is no misuse of coal.
ii) This aspect could possibly be taken
care of, if the consumer can furnish
documents to show that:
� A decision has been taken by the appropriate authority of cement company to install the plant/CPP.
� Earnest Money has been deposited with the coal company.
� The initiation for installation of Plant/CPP has been made, say, by placing orders for the machineries or any such other proof.
� The cement plant gives proof of the unit having been commissioned.
iii) Keeping the aforesaid in view the
milestones could be reduced to the
barest minimum. Therefore, the list
of Milestones pertaining to cement
plants and CPPs need to be
reviewed and pruned.
iv) For Brownfield capacities already in
operation, just a certificate that the
cement plant/CPP has been
commissioned, should be adequate
and FSAs should be signed
straightway.
Cement Industry is hopeful that the FSAs
will be signed at the earliest so that the
much-needed coal starts moving to these
new capacities.
14
Discontinuation of SLC (ST) –
Alternative Mechanism in Lieu Thereof
In the last SLC (ST) meeting held on 19th
December 2008, it was indicated by
Chairman SLC (ST)/Special Secretary,
MOC that in view of the fact that the
bilateral FSAs, as per NCDP, are now in
place to govern the coal supplies to
Cement Industry, there is no need to have
these quarterly meetings for deciding the
coal movement programme and therefore
it would be the last meeting of SLC (ST)
and if necessary a smaller alternative
mechanism may be created in lieu of SLC
(ST).
The consensus of the Member
Companies has been that the quarterly
SLC (ST) meetings have been very useful
to Cement Industry as also to MOC, Coal
Companies and Railways. These meetings
provide a forum to the representatives of
Cement Industry to highlight problems, if
any, in the matter of coal supplies and
generally, solutions concerning Rail
movement, quality of coal and various
other related matters are obtained on the
spot.
Considering the usefulness of this forum,
CMA took up the matter with Chairman
SLC (ST) and Special Secretary (Coal),
Secretary (Cordn.) and Secretary DIPP.
However, the system of holding SLC (ST)
meeting has been discontinued. Neither
has an alternative mechanism been put in
place as assured by Coal Ministry. We
are still pursuing the matter.
Transportation - Railways
Railway, an ideal mode of transport for
the Cement Industry, plays a pivotal role
in the outward movement of cement and
clinker and inward movement of inputs
viz. coal, gypsum, limestone, fly ash,
slag, etc.
During the year under review (2008-09),
CMA continued to bring to the notice of
the Senior Officials of the Railways,
including its Chairman and Hon’ble
Minister of Railways, the Rail related
problems being confronted by the
cement plants and also possible remedial
measures. Wagons supply position to the
Cement Industry was more or less
comfortable during the year. However,
some cement plants in certain Railway
Zones did not get the required number of
Rakes/Wagons, including two point and
mini rakes, which had severely disrupted
despatches of cement, clinker and
movement of coal. Partly as a result of
this, the growth in cement loading by
Rail was not up to the desired level.
Cement Loading: During the year
2008-09, cement despatches by rail were
68.33 Mn.t, out of the total despatches of
181.19 Mn.t. This is as against 63.86
Mn.t, out of the total despatches of
167.68 Mn.t during 2007-08, a growth of
7% in cement loading by rail, marginally
lower than the previous year’s 7.6%.
48th Annual Report
15
Clinker Loading: During
2008-09, Cement Industry
despatched 26.25 Mn.t of
clinker. Out of this, 14.61
Mn.t of clinker was
moved by Rail i.e
55.66%. During 2007-08,
total clinker despatches
were 22.03 Mn.t and the
despatches by Rail were
12.59 Mn.t i.e 57.15%.
Clinker loading by rail
during 2008-09 has gone
up by about 16.04%.
Cumulative Despatches
by Rail (Cement +
Clinker): During 2008-09,
total despatches by Rail
were 82.94 Mn.t as
against 76.45 Mn.t last
year, a growth of 8.49%.
Year-wise details of
cement and clinker
despatches by
rail/road/sea for the period 1992-93 to
2008-09 are given at Annexure-VIII.
CMA Committee on Railway Matters
CMA Committee on Railway Matters,
under the Chairmanship of Shri Kamal
Kishore, met seven times during the year
to discuss various rail-related issues and
also evolve strategies and action plans for
taking up the matter with con cerned
authorities.
Representations
A number of representations were made
to Hon’ble Minister of Railways and
senior officials of the Railway Board,
including Chairman, Member (Traffic)
and Member (Commercial), as also
Secretary and Joint Secretary, DIPP,
MoC&I and Secretary (Coordination),
Cabinet Secretariat soliciting their support
for resolving the problems being
experienced by the Industry.
CEMENT DESPATCHES
48.11
59.37
68.33
63.86
107.36
88.25
85.61
98.01
7.85
7.62
5.81
5.50
38.24
33.98 38
.08
37.71
0
20
40
60
80
100
120
140
05-06
06-07
07-08
08-09
Year
Mn.t
20
30
40
50
60
70
%age
RailRoadSeaRail share % age
CLINKER DESPATCHES
10.62
11.19
12.59
14.61
6.07 6.90
6.55
2.34
2.95
2.89
3.47
8.1755
.81
55.66
57.15
53.18
0
2
4
6
8
10
12
14
16
18
05-06 06-07 07-08 08-09
Year
Mn.t
50
55
60
65
70
%ag
e
RailRoadSeaRail share % age
16
Cement Industry – Pre-Railway
Budget Memorandum 2009-10
CMA, in its Pre - Railway Budget
Memorandum - 2009-10 for Cement
Industry, to Km. Mamta Banerjee,
Hon’ble Minister of Railways, inter alia,
emphasized that Railway Board had
made direct and indirect corrections in
their freight related policies, before or
after the Budget presented in the past,
which not only increased the
transportation cost of cement by Rail but
also severely affected the Rail despatch
plans of the Cement Industry. The
Hon’ble Minister was also informed that
as a result of this, the rail share in respect
of cement movement is only 40 per cent,
although there is enough potential to
increase this share to over 50 per cent,
which would also increase Railways’
earnings significantly. As an example,
the impact of overall increase in Rail
transportation cost in the last one year,
without increasing the ‘Freight Rates’, by
re-classification Slabs of Cement, Clinker
and Coal from 140 to 150 was
highlighted. This imposed an additional
transportation burden of over 7 per cent
for each of the products. Taken together,
the additional burden on the Cement
Industry works out to over Rs.54/- per
tonne of cement.
The Hon’ble Minister was, inter alia,
requested that:
� Classification Slabs of cement, coal and clinker be restored to their original levels i.e. for Cement and Coal at 140 and for Clinker the Slab should be at 130.
� Freight rates may be fixed once in a year i.e. at the time of the Budget. No direct and indirect corrections may be done in the freight-related Policy Circulars during the year.
� Withdrawal of all Surcharges and Development and Terminal charges levied by Railway Board.
� Attractive Incentive Scheme for Special Purpose Wagons for bulk cement and fly ash (unbagged).
� Freight rebate for movement of cement in open wagons may be put at par with Urea i.e. 35%. For Cement the rebate is only 20%.
Meetings with Railway Officials
During the year under review,
representatives of the Cement Industry
and the Members of the CMA Committee
on Railway Matters had 5 Meetings with
Chairman, Railway Board, Member
(Traffic), Member (Commercial) and
Chairman, Rail Cement Co-ordination
Group. These Meetings were attended
by other senior officials of the Board and
also officials from the Zonal Railways.
During these meetings it was, inter alia,
brought to the notice of Member (Traffic)
and other officers that drops effected in
diesel prices in just four-five months
period made road transportation cheaper
than Rail and was likely to go down
further due to expected fall in diesel
prices. However, Railways had not
effected any changes in their freight rates.
This might bring down the Rail share for
cement. The other issues raised by the
representatives of the Cement Industry
are given below:
48th Annual Report
17
� No Consistency in Supply of Wagons: It was suggested that Railways ensure consistency in the supply of wagons, including Box-N wagons to those plants, which have already made investments for their use throughout the year.
� Two Point/Mini Point/Multi Point
Rakes: Ensure continuous and regular
supply of such Rakes and the
Surcharges levied be withdrawn.
� Incentive Scheme for Short Lead
Cement Traffic: The existing
Incentive Scheme for short lead
cement traffic may be suitably
amended by giving a flat rate discount
of 35% for distances upto 300 kms.,
which may be provided on the “total
cement traffic”, instead of “the
incremental traffic” as at present.
� Restoration of Shunting Time: The
complete withdrawal of free shunting
time of 3 hours, given to majority of
the cement plants for shunting, be
restored.
� Round-the-Clock Working Hours:
Railway Board may consider
prescribing feasible and practical
unloading hours, since round-the-
clock working hours for unloading are
not feasible due to constraints related
to infrastructure and labor availability,
to avoid unnecessary demurrage and
wharfage charges being paid by the
Cement Plants.
� Development of Terminals : Railways
may consider allocating funds for the
development of all major terminals,
and also find out new locations in and
around the Metro cities for
developing new terminals so that
increasing arrival of cement in Metros
could be handled efficiently.
� Fly Ash Transportation by Rail: There
is a huge potential for cement plants
to tap fly ash traffic, provided
Railways consider giving a freight
rebate of 25% and also offer tank
wagons with modifications for
encouraging fly ash movement by
rail. As the Cement Industry currently
consumes about 25 Mn.t of fly ash,
which is likely to increase to 35 – 40
Mn.t in the next few years, movement
of fly ash by Rail becomes significant.
Presently, movement of fly ash by rail
is insignificant.
� Three-Tier Grievance Redressal
Machinery: Railway Board to
consider setting up a three-tier
Grievance Re-dressal Machinery on
an Institutional basis for providing
adequate forum for interaction and
also ensure accountability.
Assurances from Railway Board
In the meeting with Member (Traffic) on
19th March 2009, the following
assurances were given:
� All CFTMs to hold regular monthly meetings with the representatives of the Cement Industry to resolve all zonal/local problems.
� Railways would do their best to have continuous and regular supply of BOX-N rakes to those cement plants that had already made investments for the use of such wagons.
18
� MT’s office will give fresh instructions to all the Zones regarding restoration of the shunting time permitted to the cement plants earlier.
� Demurrage and wharfage charges Rules would be revised and announced soon.
� Railway Board is ready to develop the existing terminals lacking infrastructure facilities and also develop new terminals in and around the Metro cities.
� Assured that the suggestion regarding fixing feasible and practical unloading hours at the terminals, which are having infrastructure constraints, would be favourably considered.
� Railways would definitely examine the Cement Industry’s suggestion regarding the incentive scheme for short lead cement traffic, only on receipt of the commitment in writing from cement plants indicating that their existing short lead road traffic would be diverted to Rail, without affecting the existing long distance movement by Rail.
Your Managing Committee is hopeful that Railways would consider all the suggestions of the Cement Industry favourably and also honour their assurances. Such a step would not only increase the revenue earnings of Railways from the Cement Industry but also help execution of various ongoing and future construction projects on time, a major thrust area of the Government.
Seminar On “Increasing Rail Traffic by
Cement Units Linked to South Central
Railway
A Seminar on “Increasing Rail Traffic by
Cement Units Linked to South Central
Railway” was organized by CMA on 27th
July, 2009 in Hyderabad. Mr. Shri
Prakash, Member (Traffic), Railway Board
was the Chief Guest. Senior officials
from South Central Railway also
participated in the Seminar, apart from
Mr. Shri Prakash, Member (Traffic), Railway Board is seen addressing the gathering. Seated on the dais from left: Shri Rajeev Mehta, Sr. Vice President (Logistics), Grasim Industries; Shri Kamal Kishore, Chairman, CMA Committee onRailway Matters, Shri N.A. Viswanathan, Secretary General, CMA, Shri K.C. Jain, Sr. President, Kesoram Cement, Shri Rakesh Saxena, COM, SCR and Shri PMM Rao, CCM, SCR
Shri I. Gopinath, Vice-President (Corp-Affairs) of India Cements posing a question to Member (Traffic), Railway Board.
48th Annual Report
19
Shri K.C. Jain, Sr. President, Kesoram
Cement and other executives from
cement companies falling under SCR.
During the course of the discussions,
Member (Traffic) had evinced interest in
increasing the Rail Share for cement from
present 40% to 50% and assured that the
officials of the Railway Board are
prepared to sit with the Cement
representatives to decide the Changes
that are needed in the existing Policy of
Bulk Transportation. He had also
mentioned that Railway Board is
formulating a Policy to encourage
development of Terminals by the Private
Investors, including Third Party.
Power
Production of cement is a continuous
process and, therefore, uninterrupted
power supply is essential. A majority of
cement production operations depend
exclusively on power. During the year
under review, cement units did not face
much problems on Power front.
Almost all the cement units have installed
captive power plants to get uninterrupted
and quality power supply. As on 31st
March 2009, the total captive power
generating capacity installed in Cement
Industry was around 2728 MW. Of this,
42% is based on Diesel and 58% on
Thermal. In addition, Wind farms of
around 85 MW capacity have been
installed.
During the year 2008-09, 102.59 Mn.t
(56.5% of total production) of cement
was manufactured using captive power as
against 81.84 Mn.t (48.6% of the total
production) in 2007-08. Cement
production by use of captive power from
1992-93 to 2008-09 is given in
Annexure-IX.
Twelve States have made it mandatory to
generate/purchase a certain percentage of
total power consumption from
Renewable Energy (RE) sources under the
Renewal Purchase Obligation (RPO) and
covered by National Electricity Policy
(2005). In case of shortfall by designated
consumers, heavy penalties are leviable.
Major difficulties are faced by cement
plants in observing the RPO. The main
reasons are (a) Renewable or non-
conventional energy sources are not
universally available, (b) Irregular
availability of renewable energy and
uncertainty of quantity of power available
makes sustained operation of CPP’s
difficult, (c) The quality of renewable
power varies very much and quite often
does not conform to operational norms of
CPP’s of plants.
Cement Industry has been a fore-runner
in its commitment to fight climate
change. Industry members have already
taken initiatives for setting up Waste Heat
Recovery and other RE Projects. Further,
Cement Industry has built up captive
power generation capacity of 2000 MW
to meet its power requirement. In view of
Cement Industry’s proactive initiatives,
any mandatory obligation to generate /
consume RE power is unwarranted in a
developing country like India, which
20
would discourage RE power initiatives as
they go against the additionality-criteria
required to be proved under Clean
Development Mechanism (CDM)
projects.
CMA strongly took up the matter with the
Ministry of Power requesting to exempt
Captive Power from the RPO scheme.
JUTE PACKAGING FOR CEMENT
INDUSTRY
Cement continued to be out of the list of
commodities to be packed in jute bags
during the year 2008-09 also.
MRTP COMMISSION
RESTRICTIVE TRADE PRACTICES
ENQUIRY NO. 99/1990
- DG (INVESTIGATION &
REGISTRATION) VS. CMA & ORs.
As informed last year, in January, 2008
CMA filed an Appeal No. 876 of 2008
along with a Stay Application in the
Supreme Court of India against the
“Cease & Desist” order dated 20.12.2007
passed by MRTP Commission praying
that pending hearing and disposal of the
appeal, the impugned order dated
20.12.2007 of the MRTP Commission in
RTPE No. 99 of 1990 be stayed. CMA’s
Appeal was tagged with other appeals
filed by individual member companies in
the matter. The matter came up for
hearing on 8th February 2008 and upon
hearing the counsel, the Hon’ble
Supreme Court made the following order:
“Permission to file appeal is granted.
Issue notice in all the civil appeals returnable after eight weeks.
By way of interim relief the following directions are stayed:
We further direct them to file an affidavit of Compliance of the above directions within eight Weeks of the pronouncement of this order.”
No date for hearing the matter has yet
been fixed.
RESTRICTIVE TRADE PRACTICE
ENQUIRY NO.21/2001
S.S. MOKHA & ANOTHER
VS. CMA & ORs.
As reported last year, against the MRTP
Commission’s Order dated 29.02.2008
appeals were filed in the Supreme Court
of India by the concerned Cement
Companies.
The Full Bench of the Commission by its
Judgment and Order dated 29.02.2008
had allowed the RTPE No. 21/2001 and
concluded that the Respondents No. 2 to
11 except for Respondent No. 3 (Gujarat
Ambuja Cement Ltd) acted in concert to
raise price of cement bags in Jabalpur
during the months of July, December,
2000 and January, 2001 and the
Respondent No.1 CMA provided a
common platform to these manufacturers
for the purpose. The Commission
accordingly issued a “Cease and Desist
Order” directing R2 to R11 (except R3)
to refrain from indulging in any sort of
arrangement through the instrumentality
of CMA or otherwise for fixing selling
price of the cement in the market. The
Commission further directed them to file
48th Annual Report
21
Affidavit of Compliance within eight
weeks from the date of the Order.
After hearing the Counsel on 16.4.2008,
the Hon’ble Supreme Court directed
issue of notice and has in the meantime
stayed the directions to file Affidavit of
Compliance of “Cease & Desist Order”.
The Court also ordered to tag with Civil
Appeal No. 686 of 2008 and connected
matter i.e. Civil Appeal filed by ACC and
other member companies against the
Commission’s order in RTPE No.
99/1990. In April, 2008 CMA also filed
Civil Appeal No. 2987/2008 in the
Supreme Court of India. Since CMA had
not been required to file an Affidavit of
Compliance with the Commission, no
prayer for Stay on filing of Affidavit of
Compliance was needed to be filed by
CMA and as such none was filed. CMA
impleaded Shri Sarabjit S Mokha, Shri
Naresh Grover as Respondents and other
cement companies (who were
Respondents in the RTPE No. 21 of 2001)
as Proforma Respondents.
Simultaneously application was filed in
Supreme Court for deletion of proforma
Respondents Nos. 3 to 12 (Cement
Companies) and to dispense with service
of Notice on the said Respondents. The
Appeal was listed for hearing on 9th May,
2008. On hearing the counsel, the Court
made the following Order:
“Issue notice to respondents 1 and 2 only.* Tag with Civil Appeal No.2467 of 2008 etc.”
In October, 2008 Shri Sarabjit S Mokha &
Other filed an application for vacation of
stay in the Civil Appeal filed by ACC
Limited.
* S/Shri Sarabjit S. Mokha and Naresh Grover
Further in December, 2008 Counter
Affidavit was filed on behalf of
Respondents No. 1 & 2* in the matter of
Civil Appeal filed by CMA (2987/2008).
RESTRICTIVE TRADE PRACTICE
ENQUIRY NO.15/2007
THE DIRECTOR GENERAL (I&R)
VS. M/S. BINANI INDUSTRIES
LIMITED & ORs.
As per order dated 28.8.2007 of the MRTP Commission, a Notice of Enquiry under Section 10(a) (iv) of the MRTP Act, 1969 was received by CMA in September 2008, with a direction to file reply within four weeks. The Preliminary Investigation Report (PIR) prepared by the office of the DG(I&R) inferred that Cement Manufacturing Companies use the forum of zonal marketing committees of CMA to decide the terms and conditions of sale including prices through cartelisation. DG (I&R) suggested that Commission may kindly inquire into the Restrictive Trade Practice carried on by CMA and following 14 Cement Manufacturing Companies:-
1. M/s. Binani Industries Ltd.
2. M/s.Birla Corporation Ltd.
3. M/s. Grasim Industries Ltd.
4. M/s. Gujarat Ambuja Cements Ltd.
5. M/s. Dalmia Cement Bharat Ltd.
6. M/s. J K Cements Ltd.
7. M/s. Saurashtra Cements Ltd.
8. M/s. Zuari Industries Ltd.
9. M/s. NCL Industries Ltd.
10. M/s. OCL India Ltd.
11. M/s. Sanghi Industries Ltd.
12. M/s. UltraTech Cement Ltd.
13. M/s. Associated Cement Cos. Ltd.
14. M/s. India Cements Ltd.
22
CMA filed its reply in November 2008
stating that CMA does not play any role
in fixing the prices of cement, marketing
the cement and/or fixing terms and
conditions for sale of the cement in
market etc. It was also stated that CMA
does not have any authority either to do
so or to bind its members by directions
issued by it to sell cement at a particular
price only, and that the PIR against CMA
is untenable and is liable to be dismissed.
In April, 2009 on behalf of DG (I&R)
Rejoinder was filed to the reply filed by
CMA.
The matter has been fixed for 20th
October 2009 for Framing of Issues.
INTEREST ON DELAYED PAYMENT
OF ENHANCED ROYALTY ON
LIMESTONE
There is no progress in the matter during
the year under review.
TOLERANCE LIMIT FOR
EXCESS/SHORTAGE IN
WEIGHT OF CEMENT PACKED IN
50 KG. BAGS
As intimated last year, S/Shri S. Chouksey
(Wholetime Director, JK Lakshmi
Cement) and N.A. Viswanathan,
Secretary General, CMA met Secretary,
DIPP, Ministry of Commerce and
Industry, Government of India, in April
2008, and apprised him about the
practical difficulties in secondary
weighment of cement bags and
emphasized the need for Tolerance limit
of 1% (excess or short) in packed
cement bags.
Secretary, DIPP, took up the issue with
Central Board of Excise and Customs
(CBEC). CBEC vide circular no.
876/14/2008-CX dated 20th October
2008 allowed variation of 1%(excess or
short) for cement bags of 50 kgs. for the
purpose of levy of Central Excise Duty.
Further, it has been clarified in the
Circular that pending disputes, if any,
may also be decided accordingly.
COMPETITION COMMISSION OF
INDIA (CCI)
In the last year’s Report an “Interactive
Session on Competition Advocacy and
Awareness” of CMA with CCI has been
reported, after which copies of the handy
Booklet “Competition Compliance
Programme for Enterprises” have been
circulated to Members.
In order to gain greater sensitivity and
awareness about the various provisions of
the Competition Commission Act and the
requirement of compliance to be ensured
by the Members of the Association, a
presentation was organized and M/s.
Amarchand & Mangaldas & Suresh A.
Shroff & Co. made a presentation to the
Members in November, 2008 with
particular reference to the activities of the
CMA.
CMA also contacted similar Associations
to know the steps being taken by them to
comply with the Act.
The Members have resolved that
consistent with the charter and the duties
of CMA, in the background of its genesis
and the expectations of Govt. of India on
furnishing of information to various
authorities from time to time, including
48th Annual Report
23
material for information on Parliament
Questions, etc., every effort would be
made that the activities of the Association
should be in consonance of the
Competition Commission Act.
COMPREHENSIVE STUDY ON
CEMENT SECTOR
The slowdown in the economy in the
second half of 2008-09, as a sequel to
global financial meltdown, also affecting
the Cement Industry adversely, has
caused serious concern about the future
growth and development of the Cement
Industry and its competitiveness.
It was felt that a fresh study on the
Perspective Growth of the Industry and
Demand Projections of Cement in the
Medium and Long Term Perspective be
entrusted to a reputed consultancy
organization.
Accordingly, National Council of Applied
and Economic Research (NCAER) was
contacted and after discussion they
submitted a proposal. The Terms of
Reference (TOR) of the study broadly
included the following :
1. Review and analysis of the recent
developments in government
policies (including tax structure) and
economic environment affecting
cement market, capacity creation
and demand.
2. Review of the national and
international cement market, and
consumption trend.
3. Identification and analysis of thrust
areas of cement consumption and
projections of cement demand at
national and state level for next ten
years
4. Analysis of cement as viable
alternative to Bitumen and the
resulting potential demand
5. Analysis of Potential demand of
cement in new areas, like Low Cost
Housing technology
6. Assessment of Export
competitiveness of Cement Industry
through cross country analysis and
partial equilibrium model.
7. Analysis of domestic market of
cement in terms of dynamics of
shifts across sectors through a well
structured survey of domain experts,
dealers, and secondary data.
8. Suggesting ways and means to spur
cement demand
9. Analysis of tax structure and levies
in the neighboring countries and
countries having high per capita
cement consumption
10. Policy recommendations.
The study was awarded to the
organization on 31.03.2009.
A Draft Report of the study is expected to
be submitted by January 2010. The study
is in progress.
24
EXPORT
As mentioned in last year’s Report,
Government banned exports of Cement
and Clinker from India in April 2008 to
ensure improved availability of cement.
On various representations from CMA,
Government recognized that the ban
would result in damaging the image of
Indian exporters and even lead to legal
action by the foreign buyers while
providing a ready market for our
competitor neighbour and partially lifted
the ban on exports in May 2008 by
allowing export to Nepal and export from
ports of Gujarat. The ban on export was
completely lifted subsequently in
December 2008.
Before banning export of cement,
Government had resorted to permitting
imports of cement at Nil Customs Duty
and had also abolished CVD and Special
Additional Duty (SAD), thus distorting a
level playing field between domestic
produce and imported cement. On
various representations, Government
re-imposed CVD and SAD in January
2009 but Custom Duty continues
to be Nil.
After experiencing a sharp 33% drop in
Cement and Clinker Exports in 2007-08
(from 9.00 Mn.t in 2006-07 to 6.02 Mn.t
in 2007-08), there was a marginal
increase of 1.3% in overall exports
during 2008-09 over the year 2007-08
(from 6.02 Mn.t to 6.10 Mn.t). This was
made possible due to total lifting of the
ban on cement export and also re-
imposing of CVD and SAD on import of
cement by the Government. However,
when exports of cement and clinker are
considered separately for the period
under reference, it is noticed that while
cement export dropped by 12%, clinker
exports increased by 22%.
Country-wise cement and clinker exports
during 2007-08 and 2008-09 are given in
Annexure-X.
In order to encourage exports from India,
CMA made various representations to the
Government, from time to time, with the
following submissions:
� Captive Ports/Jetties :
To enhance global
competitiveness of
Indian cement
producers, 50% freight
subsidy be considered
for cement/ clinker
logistics cost upto the
port/jetty from the
manufacturing unit, as
most plants are located
in hinterland.
1.951.19
3.15
2.00
3.38
1.76
3.47
3.45
3.36
5.64
4.07
5.99
5.99
3.18
5.89
3.11
3.65
2.37
3.20
2.90
0
2
4
6
8
10
12
Mn.t
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
Year
EXPORT OF CEMENT/CLINKER
Cement Clinker
48th Annual Report
25
� Extension of DEPB rates for Clinker
Export: It was requested that the
DEPB rates presently fixed for
export of cement be extended for
export of clinker also.
� Duty Free Entitlement of Coal: To
compensate the high rate of
royalties on coal, limestone,
electricity duty on power, etc.,
which are not reimbursed to the
Exporters, the present 22% duty
free entitlement of coal against
exports of cement/clinker be
increased to 50%.
� Customs/ Port/ Bunker Charges:
Cement /clinker export is subject to
high customs/port/bunker charges.
Exemption from these charges will
give a fillip for exports.
� Expenses towards the Posting of
Customs Officials at Captive
Port/Jetty: Currently this is levied
on cost recovery basis. It was
requested that such expenses may
not be charged and the facility
extended on complimentary basis
since these ports are revenue
earners for the Government.
� Investment in Private Jetties/ Ports:
Investment in private jetties/ports for
export of cement / clinker result in
de-congesting our national ports.
Therefore, the investment made for
the creation of such assets may
kindly be allowed on higher rate of
depreciation.
MARKET DEVELOPMENT
During the past several years, CMA has
been vigorously promoting greater use of
cement in various construction activities.
These include roads, canal lining, low-
cost rural housing etc. While other areas
have not been neglected, greater
emphasis has been placed on
propagating the construction of concrete
roads. This is because of the fact that
about 35 per cent of the cost of a
concrete road is spent on cement,
whereas the percentage spent on cement
for other types of construction is around
half as much. In 2008-09, CMA kept up
its efforts for increasing cement
consumption in the country. These
involved meetings, discussions,
presentations, workshops, seminars and
other interaction with ministers, senior
officials and other decision makers both
at the Central, State and City levels.
Details of these interactions are given
below:
National Highways
The National Highways Authority of India
(NHAI) had drawn up a comprehensive
and ambitious programme for
upgradation and four/six laning of the
entire network of highways in the
country. The programme started off well,
but has presently slowed down due to a
number of reasons. The most important
one is that since almost all projects are
now being offered on a Build Operate
and Transfer (BOT) basis, private players
are not bidding for projects which they
26
think are not lucrative enough, or where
they feel that traffic density will be
insufficient for generating sufficient
revenue to cover construction cost. Out
of the 60 projects offered in the last few
years, 38 did not attract even a single
bidder, while seven got only one bid
each.
In the meantime, CMA has been trying
hard to persuade NHAI to go in for more
concrete pavements, in view of their long
life, low maintenance, eco-friendliness
and fuel saving characteristics. CMA had
earlier held several meetings with senior
NHAI officials, including their Chairman
and also made presentations. These
efforts resulted in over 1,700 kms. of
concrete roads being built during Phase –
I (Golden Quadrilateral) of the National
Highway Development Programme
(NHDP). Over 1,000 kms. of concrete
roads have been planned to be
constructed during Phase II (North –
South and East-West Corridors) of NHDP.
Golden Quadrilateral
NHAI is to widen Golden Quadrilateral
to 6 lanes in 2007 to 2012. As a policy,
concrete pavement will be used for
widened portion wherever concrete
pavement is already constructed. Some
rethinking in Planning Commission and
NHAI is going on to see the viability of
replacing some stretches being converted
to 6 lanes with new expressways.
About 20,000 km. NH will also be made
2 lanes wide from existing 1 or 1.5 lane
width. This project will be implemented
by Ministry of Road Transport and
Highways (MORTH) through State Govt.
agencies. DPRs will be prepared after the
project is approved by Govt. for
implementation.
NSEW Corridors
NHAI has agreed to construct few
experimental stretches on East-West
corridor with new technologies such as
use of fly ash in concrete, Continuously
Reinforced Concrete Pavement (CRCP)
and to monitor their performance by
Central Road Research Institute (CRRI).
The project has been approved by
MORTH and is now being implemented.
CRRI is in the process of procurement of
instruments to be embedded into the
concrete to observe and record the
differential temperature and stresses
developed in the slab due to vehicular
loads and temperature variation.
Port connectivity
NHAI is presently working on 262 kms.
of roads for Ports connectivity. In
addition, bypasses around Agra, Chennai,
Chittorgarh, Gorakhpur, Gwalior, Jammu,
Jhansi, Kota, Madurai, Nagaon, Sagar and
Srinagar are under implementation for
initial construction and four-laning.
Efforts are on by CMA to ensure that
maximum possible lengths of these roads
are constructed in cement concrete.
48th Annual Report
27
NOIDA-Agra Expressway
A 165 km. long. Six-lane Expressway is being built between NOIDA and Agra, in
concrete. This Expressway is being constructed by M/s. Jaiprakash Associates.
A brief overview of the status on construction of Cement Concrete Roads as also the efforts
of CMA in this direction follows:
Meetings with Ministers
Meetings/Presentations Status
1 Hon’ble Minister for Commerce and
Industry, Shri Kamal Nath
Presentation made in January 2009.
Hon’ble Minister showed interest in Cement Concrete Roads.
2 Hon’ble Chief Minister of Delhi, Smt. Shiela Dikshit
Presentation made on 14th May 2009 in
association with M/s JK Lakshmi
Cement. Hon’ble Minister decided to
construct 400 km. of Cement Concrete Roads.
Cement Concrete Roads by District level Municipal Corporations/Councils
Meetings/Presentations Status
1 Municipal Corporations of Amravati, Dhule and Malegaon
Further dialogue in progress
2 Sangli-Meeraj-Kupawad City
Municipal Corporation (SMKMC)
Built about 20 kms. of cement concrete
roads and is going to undertake some more lengths under the Central Govt.
3 Kolhapur Municipal Corporation (KMC)
The main roads about 50 kms. in length to be widened into four lanes.
4 Pune Municipal Corporation (PMC)
30 kms. length already done of planned
100 km. in city.
Also carried out Ultra Thin Concrete
White topping
5 Pimpri-Chinchwad Municipal Corporation (PCMC)
Decided to build 4 km. of four-lane concrete road in Chinchwad.
6 Ahmednagar Municipal Corporation
(AMC)
Built small stretches of Cement
Concrete Roads, some more planned under JNNURM.
28
Meetings/Presentations Status
7 Ulhasnagar Municipal Corpn. (UMC) Already constructed 44 km. of Concrete Roads.
Rs.154 crore allocated for building roads under the JNNURM.
8 Raipur Municipal Corporation (RMC), Chhatisgarh
Likely to construct concrete roads.
9 Delhi 400 km. of capital’s roads to be constructed into concrete.
10 Mangalore City Corporation Plan to concrete major arterial roads
with 4 lanes.
11 Bhubaneshwar Municipal
Corporation, Orissa
Constructing concrete roads in all its
slum areas under the JNNURM
12 Shree Gynaneshwar Maharaj, Alandi, Pune
Likely to take up cement concrete roads.
13 Shani Shringnapur Devasthan Trust (SSDT)
Already constructed 1.5 km. of 13.5 m
wide concrete road in the Trust area, more being considered.
14 Shree Saibaba Sansthan Trust, Shirdi In the process of constructing 700 mtr.
Length (15 mtr.width) in two lanes.
CMA has also been in contact with State Industrial Development Corporations and has been following up promoting Cement Concrete Roads in industrial areas at various locations in the States. Some of the highlights are :
Meetings/Presentations Status
1 Chhattisgarh State Industrial
Development Corporation Ltd. (CSIDC), Raipur
Plan to construct concrete roads in industrial areas.
2 Maharashtra Industrial Development Corporation Ltd. (MIDC)
Some roads are in different stages of construction.
2.35 km. length (7.5 m width)
cement concrete road is proposed to
be constructed in the Chandrapur Industrial Area.
3 Rajasthan State Industrial Development
and Investment Corporation (RIICO)
CMA also arranged training to RIICO
Engineers and Consultants.
4 MP State Industrial Development
Corporation Ltd. (MPSIDCL)
Pursuing with MDs of MPSIDCL in
Bhopal, Gwalior, Jabalpur and Rewa.
5 The Delhi State Industrial and
Infrastructure Development Corporation (DSIIDC)
570 km. of cement concrete roads
already done in unauthorized colonies.
48th Annual Report
29
In addition, Zilla Parishads in rual areas
in Pune and Raigarh are also being
pursued. Pune has completed 11.5 km.
of concrete roads and Mahad Nagar
Parishad, completed 15 km. of concrete
roads.
Aggressive Campaign
Towards aggressive campaign for creating
awareness and construction of concrete
roads, CMA initiated correspondence
with Secretary, Ministry of Environment
and Forests; Mayors and Municipal
Commissioners of large number of cities
and towns; Chief Executive Officer, New
Okhla Industrial Development Authority
(NOIDA) and Vice Chairman, Ghaziabad
Development Authority (GDA).
CMA would continue its efforts more
vigorously to promote cement concrete
roads and with the forward looking
Government now in place with
commitment to strengthen the economy
to sustain a 9% growth in the next year
and thereon, more concrete roads are
likely to come up.
Promotion of Concrete Roads by
Members
In January, 2009, in a meeting of the
Members, it was decided that Member
companies also promote the construction
of concrete roads, by organizing
seminars, meeting concerned Chief
Ministers, PWD Ministers and other
decision makers in their respective States
in an aggressive awareness campaign.
Member companies had voluntarily
nominated their Nodal Officers for the
campaign and forwarded the names of
these officers to CMA for ease of liaison.
Cement Concrete Roads in UP
� Public Works Department: A Presentation on Cement Concrete Roads was made by M/s Jaiprakash Associates in association with CMA to Shri Tribhuvan Ram, Engineer-in-Chief, Public Works Department, Government of Uttar Pradesh on 14th June, 2009 in Lucknow. The presentation was attended by about 60 Chief Engineers and Engineers from the entire UP State.
During the Presentation, Engineer-in-Chief not only evinced keen interest but has also conveyed his decision to construct concrete roads as a policy –
� In all the areas where roads are damaged due to water logging.
� Roads under the Ambedkar Gaon Scheme.
Completely fund 3-4 kms. stretches of roads both for white topping and new roads.
� Rural Roads Departments: Close on the heels of the above, another presentation was made to the Engineers of Rural Roads Department of UP on 17th June 2009 in Lucknow by the team of CMA and M/s Jaiprakash Associates, which was attended by around 100 Engineers.
The Engineers evinced interest in concrete roads and assured that they would consider concrete roads construction in their respective jurisdictions.
30
Other Initiatives
� Low Cost Housing
At the behest of the Chief Minister,
Andhra Pradesh, Cement Companies
in Andhra Pradesh have supplied
cement at concessional rates for low
cost housing. Members have been
requested to emulate the same in
different States.
� Catchy Slogans
CMA has prepared ‘Catchy Slogans’
and started printing the same on its
letterheads. Members have been
requested to adopt the same on their
letters, may be in different languages.
� Initiative with Petroleum
Conservation Research Association
(PCRA)
PCRA has been advertising on both
print and electronic media as well as
through road side hoardings etc. to
impress upon the public to reduce
consumption of petroleum products.
Recognizing the opportunity to put
across the message of fuel saving on
Cement Concrete Roads, CMA made
attempts to persuade PCRA for
including this aspect in their
advertisement.
In this direction, CMA held a meeting
with PCRA officials and requested
them to publicize the fact that
concrete roads saved upto 14% of
fuel of load carrying trucks traveling
on them. A copy of CMA’s report in
this regard was also handed over to
PCRA. PCRA officials replied stating
that they could only publicize the fuel
saving, if some Government agency,
like the Central Road Research
Institute (CRRI) carried out trials
proving the same and also agreed to
partly fund the trials. CMA then
approached the CRRI for carrying out
the trials. After a couple of meetings,
CRRI agreed to carry out the trials,
and submitted their proposal,
including cost estimate for the same.
PCRA requested CRRI to modify the
proposal and also bring down the
quotation.
The matter is under correspondence
between PCRA and CRRI and CMA in
the loop.
� Study on Cement Concrete Roads
Whenever discussions are held with
various organizations to promote
construction of concrete roads, the
cost aspect remains the main
consideration and CMA is asked to
present some concrete examples.
In view of this, it was felt that such an
exercise be done by a reputed
consultant in concrete road
construction. Accordingly, CMA has
awarded a study on “Economics of
Concrete Pavements and Flexible
Pavements” to M/s L.R. Kadiyali &
Associates, Engineers, Consultants
and Planners, New Delhi in April
2009. The study is now in progress.
48th Annual Report
31
� Publication “Cement Concrete Canal
Lining”
With water becoming scarce
necessitating the need to conserve
water, one of the alternatives is to
line the canals transporting water
with cement concrete. The canal
lining publication would generate
interest to have more canals lined
with cement concrete that would
help increase irrigated areas, which
in turn would increase agriculture
productivity.
TECHNICAL MATTERS
The year under report witnessed fast-track
growth of the industry, in spite of
temporary slow-down of four months due
to global economic downturn. Fast–track
Expansion in capacity during the year
went hand in hand with larger capacity of
kilns ranging from 10,000 tpd to 12,000
tpd. In the process, the industry achieved
further notable improvements in quite a
few technological, operational and
process parameters in plants – some of
which are acknowledged as “Best
Practice” in the World. Notably, the best
capacity utilization (+95%), electrical
energy consumption (63 kwh/tonne of
cement), kiln thermal loading (>7 Giga
kcal/hr/m2) and kiln volumetric loading
(>7 TPD/m3) achieved in some plants
stand out as excellent performance.
Overall, the year has witnessed
significant contribution by the industry in
bringing down the Greenhouse Gases
(GHGs) emission, Climate Change
Abatement and Sustainable
Development.
Notable Technological
Developments During the Year
(A) Fly Ash Utilization
The Draft Fly Ash Notification of Ministry of Environment and Forests (MoEF) dated November 06, 2008 seeking to make fly ash a saleable commodity came as a jolt for the entire Cement Industry. Along with that, the embodying message in the Draft Notification asking every construction agency within a radius of 100 kms. from a coal or lignite based thermal power plant to use only fly ash based products for construction with mandatory obligations dealt a body blow to the long-standing practice and the abiding interest of the cement plants in the vicinity of steel plants in recycling another equally hazardous waste like Blast Furnace slag. CMA duly represented to MoEF and also its Administrative Ministry (DIPP) against this Notification, justifying the Cement Industry’s contribution in a big way in safeguarding the National interest of combating the fly ash menace through its larger recycling, for considering CMA’s objections and suggestions before finalizing the Draft Amendment Notification. After detailed discussions between CMA Representatives and MoEF officials on May 26, 2009 in the office of the MoEF, the Ministry accepted three suggestions of CMA as under:
a) The condition of obligation of minimum 20% addition of fly ash in cement to be reduced to 15% to be in line with related BIS Specifications.
32
b) Excluding Cement plants
manufacturing Slag Cement
located within 100 kms. radius
of any Thermal Power Plant,
from compulsory use of fly ash in
view of their using slag, another
similar environmentally
hazardous waste.
c) Opencast mines be exempted
from backfilling with fly ash with
the exception of mines having
received approval for or are
already undertaking such
backfilling as a means of Mine
Closure in the Mine Plan.
(B) Conventional Fuel Security and
Alternative Fuels
The alarmingly surging crisis in fuel
security prompted many member
companies to opt for co-processing of
alternate fuels. Successful plant trials
with varied Waste Derived Fuels
(WDF) undertaken during the last 4
years by several plants in
collaboration with the State Pollution
Control Boards and under
supervision of CPCB provided highly
satisfactory results. Parallely, CMA’s
relentless pursuit of the matter bore
fruits. The MoEF Draft National
Waste Management Strategy
uploaded in its website on March 26,
2009 recommends Cement kiln as
the most environment-friendly
mechanism for recycling four types
of hazardous combustibles, namely,
shredded tyres, paint sludge, TDI Tar
Waste, and ETP sludge. Further,
CPCB has now approached CMA to
facilitate co-processing waste plastics
in Cement kilns of Rajasthan and
J & K.
Status of On-Going Issues
During the year, the Technical
Committee pursued its dialogue on
several on-going issues with a host of
statutory bodies with mixed results.
A. Bureau of Indian Standards (BIS) –
Long Pending Issues
During the year, CMA had interaction
with BIS on several emerging issues
on which CMA’S Expert
Technological team suggested
suitable solutions. A few among them
are:
(a) Procedures for destruction of
Non-conforming/substandard
cement- Guidelines provided for
environment-friendly recycling.
(b) Scope of acceptance of ISO
Final Draft International
Standards for Tests on Setting
time and fineness of cement by
India being a signatory to WTO -
Recommended acceptance of
procedures on voluntary basis.
(c) Revision of Indian Standards on
cement –OPC 33, 43 and 53
Grades – Recommended
increase in permissible SO3
content in cement.
(d) Declaration of percentage of
additives (fly ash, slag) in
cement bags – not
recommended.
48th Annual Report
33
B. Issue with CPWD - Ban on PPC is
Lifted
The final report of the DIPP
Sponsored Project with CECRI
(Central Electrochemical Research
Institute, Karaikudi, Tamil Nadu) on
“Studies on Durability of Concrete
made with Fly ash Based Portland
Pozzolana Cements in comparison to
Concrete made with Ordinary
Portland Cement“ brought out several
areas of favourable performance of
Portland Pozzolana Cements (PPC) in
comparison to Ordinary Portland
Cement (OPC). CMA, assisted by
NCBM, had been actively following
the progress of work by CECRI, who
had been assigned the additional task
on concrete durability by Central
Public Works Department (CPWD) -
Ministry of Housing and Urban
Development.
IRC has put up Draft New Guidelines
on their website mentioning that PPC
and PSC could be used for Dry Lean
Concrete and Concrete Pavements for
Roads. They have invited comments
on the same. It is hoped that the New
Guideline would be finalized in due
course.
C. Pollution Control and Environmental
Protection :
Implementation of CPCB’s “Charter
of Corporate Responsibility for
Environmental Protection” (CREP)
Background : The CREP inked by
MoEF with 17 potentially polluting
industries (including core sector
industries, e.g., cement, oil refining
steel etc) in March 2003 concluded its
fifth year of operation in March,
2008. The last (6th) Meeting of the
National Task Force (NTF) on CREP,
created for its monitoring for Cement
Industry, had been held on July 12,
2005 before its dissolution. However
a Sub-Committee for monitoring
implementation with the same
members of NTF had been instituted
for overseeing implementation of the
balance items. At its first Meeting
held on 27th January, 2006 a review
was made of the Cement Industry’s
performance on the 12 items of the
CREP. It showed that the industry had
fulfilled its committed targets in 8
out of the 12 items in the Charter; on
the remaining items the
responsibilities till rested upon CPCB,
NCBM, and CPCB nominated
Consultants with specific assignments.
Present Status : The balance items
are -- Item 4 - Evolving Load based
Standards (by CPCB), Item 5 -
Evolving SO2 and NOX emission
standards (by CPCB and NCBM),
Item 7 – Preparing the Policy on Use
of Petroleum Coke [by CPCB,
NCBM, BIS, Oil Refineries].
One pending activity executed with
joint initiative of CPCB and MoEF
during 2007-08 and 2008-09 covers
the Item No. 6 - Development of
Guidelines for control of fugitive
emissions in cement plants.
Originally assigned to NPC and IIT,
Kanpur in 2005, the voluminous
Report with guidelines difficult to
34
achieve by any operating cement
plants had been trimmed and
streamlined through several
discussion sessions of the CMA
Technical Committee members with
NPC Executives and CPCB. The
Guidelines could reach ultimate
finalisation after joint visit of CMA-
CPCB-NPC Representatives to a
cluster of cement plants in Chanda
region, Maharashtra.
To appraise our Member Companies
about the nuances of the Guidelines
and details to be taken care of to
satisfy the visits of State PCBs, CMA
with guidance of its Technical
Committee organised regional
awareness workshops in all the
regions and in major clusters.
Altogether CMA conducted 8
Workshops in 5 Regions (North,
West-Central, South, West and East)
and 3 Clusters (Raipur, Chandrapur
and Hyderabad). 219 delegates from
117 plants and offices of cement
companies had attended these
Workshops.
It may be noted that many plants are
facing difficulty with State PCBs on
the issue of Implementation of CREP
in the absence of any feedback from
CPCB to State PCBs on the present
status. CMA has, therefore,
impressed upon CPCB to approve the
Statement on Present Status and
circulate among State PCBs.
D. Climate Change Issues
i) Inventorisation of GHG
Emission by the Indian Cement
Industry
The industry sector, particularly the
energy use sector plays a major role
in GHG Inventory of the Country.
The energy use sector in India
contributes nearly 85% of GHG
Emission, out of which the industry
sector constitutes 67%. Out of the
Industry sector, Cement Industry
contributes 30% of the total
emission, next only to the steel
industry (40%). Cement Industry has,
therefore, a major role to play not
only in regular inventorisation of
GHG emission, but also in its regular
reduction.
CMA had initially taken part in the
NATCOM Project – I of the
Government of India under
leadership of the MoEF under the
banner and fund support of the
United Nations Framework
Convention on Climate Change
(UNFCCC). The NATCOM (National
Communication) Project is a
mandatory task for all developing
countries that are signatories to the
Kyoto Protocol, to provide UNFCCC
with annualized inventory of GHG
Emission. The NATCOM-I project for
India – a joint responsibility of a host
of Ministries related to GHG
Emission (Agriculture, Mining, Coal,
48th Annual Report
35
Power, Transport, Health and Family
Planning, Urban development etc)
targetted GHG emission
inventorisation of all the sectors of
the Indian economy for the period
1990 to 2000. Under this project,
CMA provided the inventory of GHG
emission contribution from cement
and lime manufacturing and
limestone use industries for the
aforestated period. The Report from
CMA had been highly acclaimed by
the MoEF for its precision.
The 2nd Phase of NATCOM – II
Project of the Government of India
envisages GHG emission from all
sectors of Indian economy for the
period 1995 to 2007 and CMA had
been assigned the task of GHG
inventorisation for the
Indian Cement
Industry for the stated
period. The Draft
Project Report is
under preparation
with participation of
all Member
Companies; earlier
estimates by CMA of
GHG emission by the
Indian Cement
Industry over the last
decade show marked
decrease in the rate of
emission per tonne of
cement.
ii) CDM (Clean Development
Mechanism) and Carbon Trading
Indian Cement Industry continues to
enjoy its iconic status among all
cement producing countries of the
World in the number of registered
CDM Projects and Carbon credits
applied for or earned so far. CDM
projects are based on reduction of
emission of any of the Green House
Gases (GHG) in the manufacturing or
any type of human activity following
the guidelines of the Kyoto Protocol.
Carbon credits are earned from
volume of GHG emission reduction
and are designated as Certified
Emission Reduction (CER). One CER
is equivalent to reduction of 1 tonne
of CO2 equivalent and can be traded
with developed countries at market
driven prices. At present, the
number of CDM projects of different
Declining GHG Emission Trend in the Indian Cement Industry
(1990 –2006)
Year Cement Production
(Million Tonnes)
GHG Emission
(Million Tonnes)
Ratio
Cement :
GHG
1990 44.87 53.84 1.20
1996 68.86 77.02 1.12
2000 95.95 91.82 0.96
2003 115.42 101.55 0.88
2004 125.07 117.56 0.94
2005 136.67 119.84 0.88
2006 152.99 131.78 0.86
36
types and scales from the Indian
Cement Industry stands at 37. Of
these, 27 projects are registered by
the CDM Executive Board of
UNFCCC and the remaining are at
different pre-registration stages. On
registration, these 37 projects are
likely to fetch the Industry an
estimated 28 million CERs over a 10
years’ crediting (validity) period
starting from the inception of a
particular project beyond the year
2000 as per the Kyoto Protocol
Treaty that expires in 2012.
CDM Projects from the Indian Cement Industry
SN Item under CDM
Process
16.03.07 15.06.07 15.09.07 26.02.08/
10-06-08
10-09-08 10-12-08 10-03-09 10-06-09
1 No. of Projects from Cement Industry in Process
38 39 37 38 37 37 37 37
2 Projects with CER* Issued
2 6 6 6 10 12 14 14
3 Projects Registered by CDM Executive Board
18 23 23 26 26 27 27 27
4 Projects under Request for Registration after Validation
9 9 6 3 3 3 3 3
5 Projects Closed for Comments
6 7 8 9 9 8 8 8
6 Projects Open for Comments
5 Nil Nil Nil Nil Nil Nil Nil
7 CER Estimated from All Projects (millions for 10 Years)
26 28 27 27.89 28 28 28 28
* 1 CER is 1 tonne CO2eq
TYPE-WISE DISTRIBUTION OF CDM PROJECTS
FROM INDIAN CEMENT COMPANIES
6
9 3
20
Waste Heat to Power
Blended Cement
Alternative Fuel and Biomass Use
Energy Efficiency
48th Annual Report
37
The CDM market has been depressed
over the last two years particularly in
respect of new registrations due to the
dual effect of global economic meltdown
and fall in crude oil price. Despite this,
the Indian Cement Industry continues to
be a remarkable leader in the global
cement sector and stays exceedingly
above the rest of the world in terms of
project numbers and CER volume.
CMA TECHNICAL COMMITTEE
AND TASK FORCES
The Technical Committee and the Two
Task Forces held four Joint Meetings
during the year in the five different
regions of the country, which helped
dissemination of information and
discussion on technology-related
Regulatory issues and in reaching
convergent decisions.
Technological Information
Dissemination & Publications
� Journal “Cement, Energy and
Environment”: The Quarterly Journal
covers articles from eminent Indian
and International experts dealing in
recent advancements and
innovations, brainstorming issues on
energy. Important articles and news
briefs are culled from more than 120
reputed journals, published
brochures, monographs of companies
across the world, daily, weekly and
Fortnightly Newspapers on these
topics.
The Journal serves as an important
vehicle of linkage and
communication with parallel Cement
Industry Associations of neighbouring
and major cement producing
countries to keep abreast with
developments in other cement
producing Countries.
� CMA Technical Newsletter: The
Newsletter provides a Quarterly
Digest on important issues, status and
outcome of CMA’s interaction with
related government departments,
nodal agencies and statutory bodies,
e.g., BEE, BIS, CPCB, MoEF.
� Cement for Construction – A
Consumer Guide : The English
language version originally published
in 2004 had gained immediate
popularity among the broad spectrum
of stakeholders leading to 2 more
editions published in 2005 and 2008.
Sensing the popularity and growing
demand across India of this 40 page
booklet, CMA brought out 8
Regional language versions in 2008 in
Bengali, Gujarati, Hindi, Kannada,
Malayalam, Marathi, Tamil, Telugu.
� Building Lasting Homes : The book
covers established practice, recent
developments and technology trends
in concrete and construction world.
This would be of immense use of not
only to construction agencies and
builders but also to individuals for
house construction.
38
Seminars and Conference
During the Year CMA had selectively
organized, co-sponsored or participated
in events for promotion of new
developments or trends for the long
term interest of the industry.
1. National Workshop on Maximising
Waste Utilisation in Cement and
Concrete for Sustainable
Development – Jointly with NCBM,
17-18 November, 2008, New Delhi.
2. India – Japan Joint Technology
Exchange Programme under Asia
Pacific Partnership (APP) - Cement
Task Force (CTF) Programme.
Reporting “Performance Diagnosis”
Studies on Indian Cement Plants by
NEDO, Japan, February 05, 2009,
New Delhi.
3. CII-MoEF Regional Awareness
Workshop on Draft Fly ash
Notification of MoEF, March 07,
2009, New Delhi.
4. Canada-India Technology Partnership
Opportunities – Round Table
Dialogue, April 08, 2009, Canadian
High Commission, New Delhi.
5. CII Conference “Green Cementech
2009”- Make Indian Cement Plants
World Class in Green – 7-8 May
2009, Hyderabad.
INFORMATION TECHNOLOGY –
INITIATIVES
CMA pursuing the Project “Going On-
line” has been reported in the last year’s
Report. The Project has since been
awarded to M/s Coromandel Infotech in
February 2009.
The work on this project is in
progress and is likely to be
completed by October 2009.
INDUSTRIAL RELATIONS
Your Managing Committee is
pleased to report that as a
result of pragmatic approach
of both Management and
Workmen, industrial
relations in Member
Companies continued to be
cordial, harmonious and
healthy during the year
under review.
Mr. Takeshi Yoshida, Chief Representative in Delhi of NEDO (New Energy and Industrial Technology Development Organization) Japan, delivering the Inaugural Speech in the Joint Meeting on “Performance Diagnosis” Studies on Indian Cement Plants by NEDO under Joint Technology Exchange Programme of Asia Pacific Partnership (APP) - Cement Task Force (CTF) Programme held on February 05, 2009, New Delhi.
48th Annual Report
39
CMA HYDERABAD OFFICE
Since the year ended on 31st March,
2005, CMA has earmarked funds for
spending on acquisition of office space.
The total amount set aside for the
purpose was Rs.8.38 crores upto the
year-ended 31.3.2008.
The matter was discussed at the
Managing Committee Meeting held on
18th December 2008 and President, CMA
requested India Cements to look for an
accommodation at Hyderabad.
The space for CMA Hyderabad Office
was finalized in March, 2009 by a Group
of Members on behalf of CMA, consisting
of S/Shri K C Jain, P Pratap Reddy, A K
Kejriwal, Rakesh Singh and I Gopinath.
The Group negotiated for 2500 sq.ft of
space (subject to actual measurement)
located at Road No. 36, Jubilee Hill,
Hyderabad.
An “Agreement of Sale” was signed on
19th June 2009 between the Owner and
CMA. Earnest money of Rs. Fifty Lakhs
has already been paid to the owner.
CMA PUBLICATIONS
During the year 2008-09, CMA brought
out/ updated the following publications/
periodicals:
� Indian Cement Industry - Statistics (2008)
� Basic Data on Indian Cement Industry – 2009
� Cement Concrete Canal Lining
� Building Lasting Homes
� CMA Directory – 2008
� Cement, Energy and Environment – Quarterly
� Cement News Digest – Weekly
� Cement Journal – Quarterly
A detailed list of CMA publications is
given in Annexure-XI.
AUDIT
The Accounts of the Association for the
year ended 31st March 2009 have been
audited by M/s K.S. Aiyar & Co.,
Chartered Accountants.
New Delhi (H.M. BANGUR)
September 2009 President
40
LIST OF ANNEXURES
Annexure-I Capacity Additions during 2008-09
Annexure-II Performance of Cement Industry – Company-wise/Unit-wise
Annexure-III Performance of Cement Industry (Including Mini and White sector)
Performance of Cement Industry (Large Plants)
Region-wise Capacity and Production (Large Plants)
Annexure-IV Chairmen and Co-Chairmen of CMA Committees
Annexure-V Increase in Cost of Inputs
Annexure-VI Month-wise Coal Receipts and Linkage
Annexure-VII Consumption of Coal/Fuel including Captive Power Plants
Annexure-VIII Cement Despatches by Rail, Road and Sea
Annexure-IX Cement Production obtained by use of Captive Power
Annexure-X Country-wise Cement and Clinker Exports
Annexure-XI List of CMA Publications
***
48th Annual Report
41
ANNEXURE-I
CAPACITY ADDITIONS (2008-09)
(Mn.t)
Name of the Plant State Month of
Commissioning
Capacity
Existing
Capacity
Added
Total
(a) New
OCL India-Kapilas (G) Orissa May 08 - 0.90 0.90
Rain Comdt. Unit-II Line 2 A.P. Jun 08 - 2.00 2.00
India Cements-Vallur (G) T.N. Aug 08 - 1.10 1.10
UltraTech-Ginigera (G) KAR Sep 08 - 1.30 1.30
JK Lakshmi Cmt-Kalol (G) GUJ Feb 09 - 0.55 0.55
Chettinad-Ariyalur T.N. Feb 09 - 2.00 2.00
Aditya Cement - II RAJ Mar 09 - 1.60 1.60
Lafarge-Mejia (G) W.B. Mar 09 - 1.00 1.00
UltraTech - APCW II A.P. Mar 09 - 2.40 2.40
Dalmia – Kadapa A.P. Mar 09 - 2.50 2.50
Madras Cmts-Ariyalur T.N. Mar 09 - 2.00 2.00
Total – (a) 17.35
(b) Expansion
Madras Cements - R.S. Raja Nagar TN Apr 08 1.20 0.60 1.80
Vasvadatta Cement KAR Apr 08 3.65 0.45 4.10
Rain Comdt. Unit-1 A.P. Jun 08 1.00 0.40 1.40
Rain Comdt. Unit-II Line 1 A.P. Jun 08 0.50 0.10 0.60
My Home Indus. Ltd. A.P. Jun 08 2.76 0.44 3.20
Mangalam Cement RAJ Sep 08 0.50 0.50 1.00
J.K. Gotan RAJ Sep 08 0.10 0.37 0.47
Kesoram Cement A.P. Nov 08 1.20 0.30 1.50
Dalmia - Dalmiapuram T.N. Dec 08 3.50 0.50 4.00
Lafarge-Jojobera (G) JHK Mar 09 3.00 0.40 3.40
Total – (b) 4.06
Total – (a+b) 21.41
42
ANNEXURE-II
PERFORMANCE OF CEMENT COMPANIES
COMPANYWISE (2008-09)
(000' Tonnes)
Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement
(Monthly Prodn. Ground Prodn. Desp.
Add Up)
A.C.C. Ltd.
1 Chaibasa Chaibasa JHK 870.00 992.80 373.36 724.25 726.17
2 Chanda Chanda MAH. 1000.00 808.57 814.78 1089.53 1090.23
3 Jamul Jamul CTG 1584.00 591.49 569.56 1256.11 1254.44
4 Kymore Kymore MP 2200.00 2936.99 1338.25 2081.24 2080.48
5 Kymore - Mehgaon Kymore MP Clinkerisation Unit
5 Lakheri Lakheri RAJ. 1500.00 935.40 896.20 1289.38 1291.82
6 Madukkarai Madukkarai TN 960.00 672.88 784.73 1030.92 1032.11
7 Sindri (G) Sindri JHK 910.00 - 367.57 843.22 843.31
8 Wadi Wadi KAR 2590.00 1611.88 1543.79 1731.00 1728.47
9 Wadi-New Wadi KAR 2600.00 2146.51 1880.78 2799.14 2809.25
10 Gagal-I Gagal HP 2000.00 1407.65 1200.38 1731.25 1730.75
Gagal-II Gagal HP 2400.00 1508.69 1495.02 2267.41 2256.18
11 Damodhar Cmt Works (G) Purulia W.B. 525.00 - 248.81 504.48 506.40
12 Tikaria (G) Tikaria UP 2310.00 - 1633.41 2517.34 2528.39
13 Bargarh Cement Works Bargarh ORISS 960.00 736.97 587.63 1082.40 1079.42
Total - A.C.C. Ltd. 22409.00 14349.83 13734.27 20947.67 20957.42
Ambuja Cements Ltd.
14 Ambuja Cement Kodinar GUJ. 1500.00 1369.90 1125.24 1194.79 1198.30
15 Gajambuja Cement Kodinar GUJ. 3000.00 2724.23 2742.11 3202.07 3205.25
16 Ambuja Cmt-Magdalla (G) Magdalla GUJ. 1000.00 - - 687.69 686.20
17 Maratha Cement Chandrapur MAH. 2400.00 2096.94 2279.13 3140.07 3126.52
18 Ambuja Cmt-H.P. Darlaghat HP 1600.00 2429.41 808.03 1231.62 1240.42
19 Ambuja Cmt-Ropar (G) Ropar PUB 2500.00 - 1626.84 2691.27 2692.90
20 Ambuja Cmt-Bathinda (G) Bhatinda PUB 500.00 - 377.65 589.01 589.26
21 Ambuja Cmt-Rabriyawas Pali RAJ. 1800.00 1943.27 1164.71 1826.43 1822.16
22 Ambuja Cmt-Roorkee (G) Roorkee UTK 1000.00 - 435.80 655.63 655.26
23 Ambuja Cmt-Bhatapara Bhatapara CTG 1000.00 1202.87 794.91 1140.38 1150.57
24 Ambuja Cmt-Sankrail (G) Sankrail W.B. 1000.00 - 770.60 1178.81 1177.92
25 Ambuja Cmt-Farakka (G) Farakka W.B. 1000.00 - 316.62 467.35 461.06
Total - Ambuja Cements Ltd. 18300.00 11766.62 12441.64 18005.12 18005.82
Andhra Cements
26 Vizag (G) Vishakhapatnam AP 622.00 - 145.35 390.50 394.37
27 Nadikude Durga Cmt Nadikude AP 800.00 766.58 619.66 785.81 792.39
Total - Andhra Cements 1422.00 766.58 765.01 1176.31 1186.76
Binani Cement
28 Binani Cement-Sirohi Sirohi Road RAJ. 4600.00 4173.48 3282.14 3862.81 3836.40
29 Binani Cement-Sikar (G) Neem Ka Thana RAJ. 1400.00 - 319.28 429.28 427.21
Total - Binani Cement 6000.00 4173.48 3601.42 4292.09 4263.61
48th Annual Report
43
(000' Tonnes)
Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement
(Monthly Prodn. Ground Prodn. Desp.
Add Up)
Birla Corp. Ltd.
30 Birla Vikas Satna MP 1550.00 1911.19 1289.97 1702.33 1713.77
31 Satna Cement Satna MP
32 Birla Cement Chittorgarh RAJ. 2000.00 1655.47 1829.29 2417.17 2420.87
33 Chanderia Cement Chittorgarh RAJ.
34 Birla Cmt-Raebareli (G) Raebareli UP 630.00 - 402.89 573.97 576.73
35 Durgapur (G) Durgapur W.B. 600.00 - 176.46 347.64 345.59
36 Durga Hitech Cmt (G) Durgapur W.B. 1000.00 - 178.70 247.37 246.25
Total - Birla Corp. Ltd. 5780.00 3566.66 3877.31 5288.48 5303.21
C.C.I. Ltd.
37 Adilabad Adilabad AP 400.00 Nil Nil Nil Nil
38 Akaltara Akaltara CTG 400.00 Nil Nil Nil Nil
39 Bokajan Bokajan ASSAM 200.00 127.70 126.08 129.40 126.64
40 Charkhi Dadri Charkhi Dadri HAR 172.00 Nil Nil Nil Nil
41 Kurkunta Kurkunta KAR 200.00 Nil Nil Nil Nil
42 Mandhar Mandhar CTG 380.00 Nil Nil Nil Nil
43 Neemuch Neemuch MP 400.00 Nil Nil Nil Nil
44 Rajban Rajban HP 200.00 131.14 125.91 143.40 145.01
45 Tandur Tandur AP 1000.00 682.54 672.70 683.42 687.16
46 Delhi (G) Tughalakabad DELHI 500.00 - Nil Nil Nil
Total - C.C.I. Ltd. 3852.00 941.38 924.69 956.22 958.81
Cement Manu. Co. Ltd
47 Cement Manu. Co. Ltd Lumshnong MEG. 594.00 653.41 333.91 409.78 409.82
48 Megha T & E (P) Ltd (G) Lumshnong MEG. 462.00 - 323.01 465.49 465.51
Total - Cement Manu. Co. Ltd 1056.00 653.41 656.92 875.27 875.33
Century Textiles
49 Century Cement Tilda CTG 2100.00 1330.65 1299.21 1952.70 1957.24
50 Maihar Cement Maihar MP 3800.00 2747.70 2492.44 3565.50 3590.93
51 Manikgarh Cmt Manikgarh MAH. 1900.00 1292.24 1286.53 1697.41 1694.90
Total - Century Textiles 7800.00 5370.59 5078.18 7215.61 7243.07
Chettinad Cement
52 Chettinad-Karur Karur TN 600.00 973.67 888.55 1205.15 1204.75
53 Chettinad-Karikkali Karikkali TN 1200.00 1201.19 1257.39 1862.00 1864.46
54 Chettinad-Ariyalur Keelapaluvur TN 333.33 112.70 76.09 81.75 77.67
Total - Chettinad Cement 2133.33 2287.56 2222.03 3148.90 3146.88
Dalmia Cement
55 Dalmia-Dalmiapuram Dalmiapuram TN 3666.67 2498.13 2449.88 3373.78 3380.03
56 Dalmia-Kadapa Jammalamadugu AP 208.33 40.22 10.32 10.64 5.61
Total - Dalmia Cement 3875.00 2538.35 2460.20 3384.42 3385.64
44
(000' Tonnes)
Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement
(Monthly Prodn. Ground Prodn. Desp.
Add Up)
Grasim Indus.
57 Rajashree-Malkhed Malkhed KAR 3200.00 3983.83 2625.93 3070.01 3073.76
58 Rajashree-Hotgi (G) Hotgi MAH. 1800.00 - 1579.93 1878.96 1877.17
59 Vikram Cement Jawad Road MP 3000.00 3560.90 2967.88 3837.81 3829.81
60 Aditya Cement I & II Shambhupura RAJ. 1933.33 2832.65 1660.19 2239.04 2224.46
61 Grasim Cement-Raipur Raipur CTG 2500.00 1593.14 1240.74 2104.47 2108.93
62 Grasim South Reddipalayam TN 1400.00 1032.32 1015.55 1361.49 1359.76
63 Grasim-Bhatinda (G) Bhatinda PUB 1750.00 - 857.79 1302.33 1306.36
64 Grasim-Dadri (G) Dadri UP 1300.00 - 97.60 126.34 125.16
65 Grasim-Panipat (G) Panipat HAR 1300.00 - 286.94 398.52 381.65
Total - Grasim Indus. 18183.33 13002.84 12332.55 16318.97 16287.06
HMP Cmts. Ltd.
66 Porbandar Porbandar GUJ. 198.00 Nil Nil Nil Nil
67 Shahabad Shahabad KAR 476.00 Nil Nil Nil Nil
Total - HMP Cmts. Ltd. 674.00 Nil Nil Nil Nil
India Cements
68 Sankarnagar Talaiyuth TN 1800.00 1207.71 1218.08 1729.78 1726.92
69 Sankaridurg Sankaridurg TN 600.00 411.92 411.47 609.20 609.68
70 Chilamkur Works Chilamkur AP 1450.00 1043.63 1046.09 1251.29 1247.22
71 Dalavoi Trichy TN 1850.00 1182.88 1077.29 1551.80 1552.87
72 Visaka Cement Tandur AP 1120.00 1023.89 916.16 1054.12 1053.09
73 Yerraguntla Yerraguntla AP 520.00 493.26 489.29 620.03 618.51
74 Raasi Cement Wadapally AP 2300.00 1619.35 1627.15 2007.54 2022.95
75 Vallur (G) Vallur TN 733.34 - 208.93 287.60 278.56
Total - India Cements 10373.34 6982.64 6994.46 9111.36 9109.80
J.K. Group
76 J.K-Nimbahera Nimbahera RAJ. 3300.00 2375.89 2209.36 2679.43 2678.67
77 J.K-Mangrol Mangrol RAJ. 750.00 648.20 791.13 966.79 967.04
78 J.K-Gotan Gotan RAJ. 315.84 65.07 109.63 153.38 153.43
79 J.K. Lakshmi Cement Sirohi Road RAJ. 3400.00 3091.73 2805.35 3663.46 3657.70
80 J.K. Lakshmi Cmt-Kalol (G) Kalol GUJ. 91.25 - 33.17 35.30 35.03
81 J.K Udaipur Udyog Udaipur RAJ. 900.00 Nil Nil Nil Nil
Total - J.K. Group 8757.09 6180.89 5948.64 7498.36 7491.87
Jaypee Group
82 Jaypee Rewa Rewa MP 3000.00 3087.74 2317.76 3042.89 2967.39
83 Jaypee Bela Bela MP 2400.00 2054.67 1834.86 2256.73 1890.11
84 Jaypee-Sadva Khurd (G) Sadva Khurd UP 600.00 - - 609.23 632.92
85 Jaypee Ayodhya (G) Tanda UP 1000.00 - 581.81 861.67 861.56
86 Jaypee-Panipat (G) Panipat HAR 1000.00 - 515.90 666.04 672.91
Jaypee-Sidhi (#) Sidhi MP - 116.45 - - -
87 Dalla Dalla UP 432.00 351.27 Nil Nil Nil
88 Chunar (G) Chunar UP 1500.00 - 447.00 612.81 616.72
Total - Jaypee Group 9932.00 5610.13 5697.33 8049.37 7641.61
# Cement production has not yet commenced.
48th Annual Report
45
(000' Tonnes)
Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement
(Monthly Prodn. Ground Prodn. Desp.
Add Up)
Kesoram Indus.
89 Kesoram Cement Ramagundam AP 1325.00 1097.18 1165.61 1512.16 1513.23
90 Vasvadatta Cement Sedam KAR 4100.00 3441.50 3413.50 3928.96 3927.37
Total - Kesoram Indus. 5425.00 4538.68 4579.11 5441.12 5440.60
Lafarge India(P) Ltd
91 Arasmeta Cement Bilaspur CTG 1600.00 1661.40 1137.77 1763.58 1766.24
92 Lafarge-Sonadih Sonadih CTG 550.00 1290.18 303.64 489.03 489.24
93 Lafarge-Jojobera (G) Singbhum JHK 3033.33 - 1499.25 3039.35 3045.33
94 Lafarge-Mejia (G) Mejia W.B. 83.33 - 5.66 7.31 1.75
Total - Lafarge India(P) Ltd 5266.66 2951.58 2946.32 5299.27 5302.56
Madras Cements
95 Ramasamyraja Nagar R.S.Raja Nagar TN 1800.00 759.82 1008.02 1426.76 1426.93
96 Jayantipuram Jaggayyapet AP 2000.00 1815.37 1532.75 1848.25 1853.31
97 Alathiyur Works I & II Alathiyur TN 3120.00 2052.96 2131.24 2956.93 2956.34
98 Madras Cmts-Ariyalur Govindapuram TN 166.67 36.39 36.65 39.33 35.15
Total - Madras Cements 7086.67 4664.54 4708.66 6271.27 6271.73
Malabar Cement
99 Malabar Cements Palghat KERLA 420.00 430.74 361.30 506.07 500.90
100 Malabar Cements (G) Alappuzha KERLA 200.00 - 71.19 94.00 94.02
Total - Malabar Cement 620.00 430.74 432.49 600.07 594.92
Mangalam Cement
101 Mangalam Cement Morak RAJ. 791.67 385.49 530.54 638.82 645.08
102 Neer Shree Cement Morak RAJ. 1000.00 1056.20 916.46 1056.47 1058.72
Total - Mangalam Cement 1791.67 1441.69 1447.00 1695.29 1703.80
Mehta Group
103 Saurashtra Cement Ranavav GUJ. 1164.00 1349.13 1210.85 1338.72 1333.08
104 Gujarat Sidhee Cmt Veraval GUJ. 1200.00 1249.10 1059.25 1170.32 1171.67
Total - Mehta Group 2364.00 2598.23 2270.10 2509.04 2504.75
Mysore Cement
105 Mysore Cement Ammasandra KAR 570.00 235.97 142.16 288.48 286.46
106 Diamond Cmt-I Damoh MP 525.00 453.38 294.25 462.48 465.99
Diamond Cmt-II Damoh MP 500.00 633.54 365.82 569.35 571.03
107 Diamond Cmt-Jhansi (G) Jhansi UP 500.00 - 486.65 731.85 730.87
108 Raigad Unit (G) ($) Raigad MAH. 166.67 - 62.80 112.73 116.54
Total - Mysore Cement 2261.67 1322.89 1351.68 2164.89 2170.89
$ - Indorama Cements has been taken over by Mysore Cement during the month of Feb 09 and the plant name is changed to Raigad Unit.
Therefore data shown for Indorama cement as Raigad unit under Mysore Cement for the period of Feb 09 - Mar 09 &
data pertains to the period of Apr 08 - Jan 09 is shown under 'Others' as Indorama Cement
46
(000' Tonnes)
Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement
(Monthly Prodn. Ground Prodn. Desp.
Add Up)
OCL India Ltd.
109 OCL India-Rajgangpur Rajgangpur ORISS 1800.00 900.01 829.39 2155.15 2157.09
110 OCL India-Kapilas (G) Kapilas ORISS 825.00 - 240.83 597.40 599.09
Total - OCL India Ltd. 2625.00 900.01 1070.22 2752.55 2756.18
Orient Paper Indus.
111 Orient Cement Devapur AP 2400.00 1937.93 1370.22 1947.76 1945.49
112 Orient Cement-Jalgaon (G) Jalgaon MAH. 1000.00 - 655.14 954.93 954.57
Total - Orient Paper Indus. 3400.00 1937.93 2025.36 2902.69 2900.06
Penna Cement
113 Penna-Tadipatri I&II Tadipatri AP 1500.00 1168.47 1178.63 1599.07 1593.03
114 Penna-Ganeshpahad Ganeshpahad AP 1000.00 896.06 921.97 1126.95 1117.54
115 Penna-Boyareddypalli Boyareddypalli AP 2000.00 736.44 638.86 723.95 716.13
Total - Penna Cement 4500.00 2800.97 2739.46 3449.97 3426.70
Rain Comdt. Ltd.
116 Rain Comdt.UnI Ramapuram AP 1333.34 904.22 915.84 1210.35 1216.61
117 Rain Comdt.UnII LN 1 Racherla AP 583.33 402.61 393.63 524.07 523.80
Rain Comdt.UnII LN 2 Racherla AP 1666.67 661.21 631.11 655.23 652.96
Total - Rain Comdt. Ltd. 3583.34 1968.04 1940.58 2389.65 2393.37
Tamil Nadu Cement
118 Alangulam Alangulam TN 400.00 115.46 126.18 143.90 142.51
119 Ariyalur Ariyalur TN 500.00 334.02 325.77 360.29 363.31
Total - Tamil Nadu Cement 900.00 449.48 451.95 504.19 505.82
UltraTech Cement Ltd
120 UltraTech - ACW Chandrapur MAH. 3600.00 2947.98 2917.52 3585.45 3572.18
121 UltraTech - JCW (G) Jharsuguda ORISS 1000.00 - 675.73 1003.64 1006.62
122 UltraTech - HCW Hirmi CTG 1900.00 2613.06 1387.25 1849.80 1850.95
123 UltraTech - Gujarat Pipavav GUJ. 5800.00 4929.91 2926.30 3409.09 3402.73
124 UltraTech - APCW I & II Tadpatri AP 2200.00 3236.77 1856.98 2346.89 2340.68
125 UltraTech - ARCW (G) Arakonam TN 1100.00 - 779.98 998.15 1001.76
126 UltraTech - WBCW (G) Durgapur W.B. 1200.00 - 715.42 1064.81 1064.93
127 UltraTech - Ginigera (G) Ginigera KAR 758.34 - 119.12 163.86 164.69
128 Jafrabad Jafrabad GUJ. 500.00 1346.39 339.94 378.61 377.51
129 Magdalla (G) Magdalla GUJ. 700.00 - 528.30 673.38 671.33
130 Ratnagiri (G) Ratnagiri MAH. 400.00 - 370.03 387.98 387.66
Total - UltraTech Cement Ltd 19158.34 15074.11 12616.57 15861.66 15841.04
Zuari Cement Ltd.
131 Zuari Cement Krishna Nagar AP 2200.00 1806.51 1811.69 2203.03 2197.21
132 Sri Vishnu Cement Sitapuram AP 1200.00 1058.30 1052.05 1301.66 1300.33
Total - Zuari Cement Ltd. 3400.00 2864.81 2863.74 3504.69 3497.54
48th Annual Report
47
(000' Tonnes)
Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement
(Monthly Prodn. Ground Prodn. Desp.
Add Up)
Others
133 Shree Digvijay-Sikka Sikka GUJ. 1075.00 887.23 813.21 898.24 901.23
134 Shree Cement Beawar RAJ. 9100.00 6421.23 5838.03 7780.21 7773.52
135 Prism Cement Satna MP 2000.00 2318.71 1806.30 2497.63 2507.55
Indorama Cement (G) (@) Raigad MAH. 833.33 - 176.15 397.55 392.77
136 Lemos Cement Khalari JHK 109.00 Nil Nil Nil Nil
137 Kistna Kistna AP 214.00 Nil Nil Nil Nil
138 Bagalkot Cmt. & Ind. Ltd Bagalkot KAR 297.00 157.06 98.88 146.09 147.71
139 J&K Ltd Khrew J&K 200.00 101.53 133.87 140.47 142.31
140 Kalyanpur Cement Banjari BIHAR 1000.00 403.35 415.30 597.49 597.13
141 K.C.P. Ltd Macherla AP 660.00 603.92 641.98 720.14 723.12
142 Mawmluh Cherra Cherrapunji MEG. 200.00 51.06 49.85 50.61 50.56
143 Panyam Cements Bugganipalle AP 531.00 454.04 424.72 503.25 501.57
144 Sone Valley Japla JHK 254.00 Nil Nil Nil Nil
145 Shriram Cements Kota RAJ. 200.00 279.32 279.24 380.13 381.04
146 Sanghi Indus. Ltd. Abdasa Taluka GUJ. 2600.00 2054.15 2021.61 2226.15 2257.64
147 My Home Indus. Ltd. Mellacheruvu AP 3126.67 2460.81 2457.53 3127.48 3126.06
148 Meghalaya Cmts. Ltd. Lumshnong MEG. 297.00 443.13 366.90 525.45 525.13
Total - Others 22697.00 16635.54 15523.57 19990.89 20027.34
GRAND TOTAL 205626.44 138770.20 133701.46 181605.39 181194.19
@ - Data pertains to the period of Apr 08 - Jan 09
48
ANNEXURE-III
PERFORMANCE OF CEMENT INDUSTRY (Including Mini and White Sector)
(Mn.t)
Year Capacity at Cement
the Year End 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 1999-00 120.02 100.45 2000-01 132.90 100.11 2001-02 145.90 106.90
X Plan 2002-03 150.34 116.35 2003-04 156.91 123.50 2004-05 164.56 133.57 2005-06 170.96 147.81 2006-07 178.55 161.64
XI Plan
2007-08 208.86 174.31 2008-09 230.27 187.61
Performance of Cement Industry
(Large Plants) (Mn.t.)
Year Capacity at Cement
the Year End Production
VII Plan
1989-90 (Terminal Year) 57.15 42.92 Annual Plans 1990-91 59.31 45.75 1991-92 61.73 50.61
VIII Plan 1992-93 65.36 50.72 1993-94 71.68 54.09 1994-95 78.52 58.35 1995-96 87.18 64.54 1996-97 96.68 69.98
IX Plan
1997-98 101.93 76.74 1998-99 107.98 81.67 1999-00 111.02 94.21 2000-01 121.80 93.61 2001-02 134.80 102.40
X Plan
2002-03 139.24 111.35 2003-04 145.81 117.50 2004-05 153.46 127.57 2005-06 159.86 141.81 2006-07 167.45 155.64
XI Plan 2007-08 197.76 168.31 2008-09 219.17 181.61
0
50
100
150
200
250
89-90
90-91
91-92
92-93
93-94
94-95
95-96
96-97
97-98
98-99
99-00
00-01
01-02
02-03
03-04
04-05
05-06
06-07
07-08
08-09
Production
Capacity
48th Annual Report
49
ANNEXURE-III (Contd.)
REGION-WISE CAPACITY AND PRODUCTION (Large Plants)
(Mn.t.)
Region 2004-05 2005-06 2006-07 2007-08 2008-09
Inst. Cap.
Prodn. Inst. Cap.
Prodn. Inst. Cap.
Prodn. Inst. Cap.
Prodn. Inst. Cap.
Prodn.
North 28.35 26.71 31.12 29.67 33.77 32.10 47.47 36.46 49.94 41.20
East 22.96 18.73 24.22 20.05 25.35 22.07 28.99 23.85 31.30 26.00
South 48.28 38.98 51.09 44.88 54.09 50.15 61.81 54.23 77.90 59.90
West 29.38 22.76 28.94 24.93 28.94 27.28 31.84 28.75 32.38 28.46
Central 24.49 20.39 24.49 22.28 25.30 24.04 27.65 25.02 27.65 26.05
Total 153.46 127.57 159.86 141.81 167.45 155.64 197.76 168.31 219.17 181.61
50
ANNEXURE-IV
CHAIRMEN AND CO-CHAIRMEN OF CMA COMMITTEES
CMA HIGH POWER COMMITTEE
Shri H.M. Bangur Chairman
President, CMA &
Managing Director,
Shree Cement Ltd
Mrs. Vinita Singhania Co-Chairman
Vice-President, CMA &
Managing Director
JK Lakshmi Cement Ltd.
CMA COMMITTEE ON COAL MATTERS
Shri P.K. Chand Chairman
Chief Financial Officer
Birla Corpn. Ltd.
Shri Kamlesh Sharma Co-Chairman
Sr. Vice-President (Corp. Affairs),
Ambuja Cements Ltd
CMA TECHNICAL COMMITTEE
Shri S.K. Wali Chairman
Wholetime Director,
JK Lakshmi Cement Ltd.
Shri Naveen Chadha Co-Chairman
Head-Operational Support
ACC Ltd.
48th Annual Report
51
CMA ENERGY TASK FORCE
(Part of Technical Committee)
Dr. K.C. Narang Chairman
Advisor
Dalmia Cement (Bharat) Ltd.
Shri R. Vasudevan Co-Chairman
Head - Thermal Process Technology
ACC Ltd
CMA ENVIRONMENTAL TASK FORCE
(Part of Technical Committee)
Shri L. Rajasekar Chairman
Jt. Executive President
(Technology & Research Centre)
Grasim Industries Ltd
Shri P.L. Subramaniam Co-Chairman
Sr. President (Operations)
The India Cements Ltd
CMA FINANCE/LEGAL MATTERS COMMITTEE
Shri R.G. Bagla Chairman
Group Executive President
J.K. Cement Works
Shri A.V. Dharmakrishnan Co-Chairman
Executive Director (Finance)
Madras Cements Ltd
CMA COMMITTEE ON RAILWAY MATTERS
Shri Kamal Kishore Chairman
Executive President (Cordn)
Maihar Cement
Shri Rahul Kumar Co-Chairman
COO (Cement),
Jaiprakash Associates Ltd
***
52
ANNEXURE-V
INCREASE IN INPUT COSTS OF CEMENT (March 2008 to March 2009)
Description March March Average Increase/decrease in
2008 2009 March 2009 Over March 2008
%Age
Wages at Minimum Level 7885.10 8589.35 8.93 43.21 *
(Rs./Month)
Average Landed Cost of Fuel @ 3074.00 4249.00 38.22 235.00 #
(Rs./Tonne)
Power (Rs./KWH) 4.42 4.42 0.00 0.00
Weighted Average of Royalty, Cess 46.00 46.00 0.00 0.00
on Limestone (Rs./Tonne)
Packing Charges (Rs./Tonne) 120.00 130.00 8.33 10.00
Central Excise Duty (Rs./Tonnes)(Maximum) 618.00 927.00 - - ^
Railway Freight on Cement for 677.30 677.30 0.00 0.00
AverageLead of 750 Km (Rs./Tonne)
Other Indirect Impact on Cost of Inputs 338.00 370.00 9.47 32.00
(Petroleum Products, Stores & Spares,
Raw Material etc.) (Rs./Tonne)
Capital Related Cost 1100.00 1100.00 0.00 0.00
(Depreciation, Interest etc.)
Total 320.21
VAT / Sales Tax @ 12.50% 40.03
Grand Total 360.24
18.01
Or Say Rs.18 Per Bag
Rs./Tonne of
Cement
* Includes impact of Labour Wage Agreement effective from 1.4.2006, but does not include impact of first
instalment of one time lumpsum payment of Rs.6500/- paid on or before December 2008 as per Bipartite
Agreement dated 29.4.2008 signed by the Workers’ Federations/Unions and CMA.
# Coal Consumption taken as 20% per tonne of Cement
@ Includes Linked Coal, Open Market Purchase, Pet Coke, Imported Coal and Lignite.
^ By the Finance Act, 2008, the Excise Duty on Cement has been raised from Rs.600 per tonne to Rs.900 per tonne
w.e.f. 10th May 2008.
Ministry of Finance (Deptt. of Revenue), Government of India amended -
- Excise Duty on Cement w.e.f. 7.12.2008 vide Notification No.58/2008-Central Excise dated 7th December 2008.
- Excise Duty on Clinker w.e.f. 24.12.2008 vide Notification No.64/2008-Central Excise dated 24th December 2008.
- Excise Duty on Bulk Cement w.e.f. 24.2.2009 vide Notification No.4/2009-Central Excise dated 24th February 2009.
Excise Duty Ad-valorem and Fixed have been reduced by 33.33% vide above Notifications.
48th Annual Report
53
ANNEXURE-VI
MONTHWISE COAL RECEIPT AND LINKAGE (2004-05 to 2008-09)
(Mn.t)
Month 2008-09 2007-08 2006-07 2005-06 2004-05
April 1.09 1.25 1.26 1.26 1.15
(1.54) (1.42) (1.34) (1.37) (1.41)
May 0.96 1.10 1.26 1.20 1.22
(1.54) (1.42) (1.34) (1.37) (1.41)
June 1.17 1.21 1.27 1.00 1.21
(1.54) (1.42) (1.34) (1.37) (1.41)
Sub-Total 3.22 3.56 3.79 3.46 3.58
(4.62) (4.26) (4.02) (4.11) (4.23)
July 1.09 1.30 1.27 1.16 1.29
(1.50) (1.33) (1.25) (1.34) (1.39)
August 1.06 1.30 1.12 1.32 1.17
(1.50) (1.33) (1.25) (1.34) (1.39)
September 1.10 1.26 1.12 1.17 1.15
(1.50) (1.33) (1.25) (1.34) (1.39)
Sub-Total 3.25 3.86 3.51 3.65 3.61
(4.50) (3.99) (3.75) (4.02) (4.17)
October 1.27 1.34 1.16 1.25 1.15
(1.54) (1.35) (1.29) (1.43) (1.45)
November 1.33 1.20 1.19 1.34 1.28
(1.54) (1.35) (1.29) (1.43) (1.45)
December 1.37 1.12 1.15 1.35 1.28
(1.54) (1.35) (1.29) (1.43) (1.45)
Sub-Total 3.97 3.66 3.50 3.94 3.71
(4.62) (4.05) (3.87) (4.29) (4.35)
January 1.42 1.18 1.17 1.32 1.28
(1.54) (1.35) (1.28) (1.56) (1.46)
February 1.21 1.13 1.18 1.15 1.28
(1.54) (1.35) (1.28) (1.56) (1.46)
March 1.22 1.17 1.28 1.29 1.38
(1.54) (1.35) (1.28) (1.56) (1.46)
Sub-Total 3.85 3.48 3.63 3.76 3.94
(4.62) (4.05) (3.84) (4.68) (4.38)
Grand Total 14.29 14.56 14.43 14.81 14.84
(18.36) (16.35) (15.48) (17.10) (17.13)
Notes : Figures in brackets pertain to Linkage There may be small difference in figures indicated elsewhere due to rounding off.
54
ANNEXURE-VII
CONSUMPTION OF COAL/ FUEL INCLUDING
CAPTIVE POWER PLANTS (1992-93 to 2008-09)
(Mn.t)
Year Actual Coal Coal Coal Lignite
Fuel Receipt purchased Imported and
Consumption against from open Pet Coke
Linkage Market
VIII Plan
1992-93 12.05 10.49 1.27 0.09 0.80
1993-94 12.78 10.34 0.86 0.12 0.70
1994-95 13.29 10.28 2.32 0.71 0.80
1995-96 14.25 10.06 2.80 1.30 0.80
1996-97 15.03 10.45 2.48 1.65 0.70
IX Plan
1997-98 14.98 9.61 1.62 3.52 0.42
1998-99 13.98 8.24 0.77 4.66 0.20
1999-00 15.42 9.01 0.63 6.04 0.05
2000-01 15.37 9.74 0.79 4.40 0.42
2001-02 15.81 11.09 0.87 3.37 0.96
X Plan
2002-03 17.83 12.35 0.77 3.66 1.09
2003-04 18.85 13.35 1.03 3.18 1.52
2004-05 21.21 14.84 1.27 3.63 2.63
2005-06 22.39 14.81 1.55 3.40 2.98
2006-07 25.02 14.43 2.94 4.96 2.92
XI Plan
2007-08 27.33 14.56 5.00 6.08 3.20
2008-09 29.57 14.29 6.17 6.97 2.77
48th Annual Report
55
ANNEXURE-VIII
CEMENT DESPATCHES BY RAIL, ROAD AND SEA (1992-93 to 2008-09)
(Large Plants)
(Mn.t)
Despatches %age
Year Despatches
Rail Road Sea Total by Rail
to Total
VIII Plan
1992-93 26.99 23.69 - 50.68 53
1993-94 28.45 25.77 - 54.22 52
1994-95 29.29 29.02 - 58.31 50
1995-96 29.12 35.37 - 64.49 45
1996-97 31.08 38.81 - 69.89 44
IX Plan
1997-98 32.58 43.99 - 76.57 43
1998-99 32.72 49.11 - 81.83 40
1999-00 38.71 55.29 - 94.00 41
2000-01 36.80 56.64 - 93.44 39
2001-02 36.20 64.06 2.11 102.37 35
X Plan
2002-03 37.12 72.25 1.70 111.07 33
2003-04 39.28 76.45 1.50 117.23 34
2004-05 41.45 83.55 2.14 127.14 33
2005-06 48.11 85.61 7.85 141.57 34 (10.62) (6.07) (2.34) (19.03) (56)
2006-07 59.37 88.25 7.62 155.24 38
(11.19) (6.90) (2.95) (21.04) (53)
XI Plan
2007-08 63.86 98.01 5.81 167.68 38 (12.59) (6.55) (2.89) (22.03) (57)
2008-09 68.33 107.36 5.50 181.19 38 (14.61) (8.17) (3.47) (26.25) (56)
Figures in brackets pertain to Clinker Despatches
56
ANNEXURE- IX
CEMENT PRODUCTION OBTAINED BY USE
OF CAPTIVE POWER (1992-93 to 2008-09)
Year Units Produced Cement Production by Cement Production
by Captive Sets use of Captive Power by use of Captive
Power to total
Production
(Mn.) (Mn.t) (%)
VIII Plan
1992-93 1100.00 9.17 18.07
1993-94 1248.65 10.41 19.24
1994-95 1481.18 12.34 21.15
1995-96 2109.06 17.58 27.24
1996-97 2346.49 19.55 27.94
IX Plan
1997-98 2575.87 21.47 27.97
1998-99 3192.91 26.61 32.58
1999-00 4298.71 37.38 39.68
2000-01 4880.98 42.44 45.34
2001-02 4866.46 42.32 41.33
X Plan
2002-03 5363.92 46.64 41.89
2003-04 5298.10 46.07 39.21
2004-05 6396.66 60.92 47.75
2005-06 7359.63 70.09 49.43
2006-07 7874.75 75.00 48.18
XI Plan
2007-08 8592.98 81.84 48.62
2008-09 * 9233.47 102.59 56.49
* Provisional
48th Annual Report
57
ANNEXURE-X
COUNTRY-WISE CEMENT AND CLINKER EXPORT (2007-08 and 2008-09)
(Tonnes)
Cement Export Clinker Export Total Export Country
2008-09 2007-08 2008-09 2007-08 2008-09 2007-08
Nepal 419619 334970 509876 557275 929495 892245
Iraq 648259 876883 - - 648259 876883
Qatar 248468 163864 90233 13756 338701 177620
U.A.E. 39577 30160 241463 45630 281040 75790
Kuwait 138018 - 73712 - 211730 -
Sudan 96472 35956 - - 96472 35956
Oman 36335 15401 59340 31580 95675 46981
Yemen 53090 29133 - - 53090 29133
Sri Lanka 39201 18854 - - 39201 18854
Mozambique 42857 - - - 42857 -
Tanzania 17127 23229 - - 17127 23229
Mauritius 13556 - 13556 -
Somalia 6178 400 - - 6178 400
Bhutan - - 3999 7993 3999 7993
Bangladesh 2541 1100 - - 2541 1100
Bahrain 2500 - - - 2500 -
Mayotee 2160 - - - 2160 -
Maldives 1465 8485 - - 1465 8485
Congo 84 - - - 84 -
Djibouti 447 10600 - - 447 10600
South Africa - 42050 - - - 42050
Ethopia - 32999 - - - 32999
Comores - 3555 - - - 3555
Others ($) 1392471 2020703 1920860 1718407 3313331 3739110
Total 3200425 3648342 2899483 2374641 6099908 6022983
($) - Country-wise break-up not available.
58
ANNEXURE-XI
LIST OF CMA PUBLICATIONS
A. Brought out/ updated during 2008-09
� Indian Cement Industry - Statistics (2008)
� Basic Data on Indian Cement Industry – 2009
� Cement Concrete Canal Lining
� Building Lasting Homes
� CMA Directory – 2008
� Cement, Energy and Environment – Quarterly
� Cement News Digest – Weekly
� Cement Journal – Quarterly
B. Other important publications
� Cement for Construction – A Consumer Guide
(In Different Languages – English, Hindi, Tamil, Telugu, Malayalam,
Kannada, Punjabi and Gujarati)
� City Concrete Roads …. (Revised, Updated and Enlarged)
� Blended Cement … Portland Pozzolana Cement (A Pamphlet)
� Four Laning of Satara-Kolhapur-Kagal, NH4 (Updated)
� Handbook on Cement Concrete Canal Lining
� Handbook on Cement Concrete Roads
� Precast Concrete Block Paving
� Fuel Savings on Cement Concrete Pavements
� Concrete Roads - 'Why' & 'How'
� Advances in Concrete Science & Technology
� Concrete Pavements for Toll (BOT) Roads
� Concrete for the Sustainable Development in the 21st Century
� Cement Concrete Roads - Arteries for the 21st Century
� Global Warming & Cement
� Environment Friendly Cement Industry
� QC – Cement Concrete Roads
� Handbook of Ready Mix Concrete
� India's First Access Controlled Expressway - Mumbai-Pune
� City Concrete Roads – Mumbai leads the Way
� Cement Concrete Pavements for City Roads, Bus Stands & Depots
� Cement Concrete Roads for Cities
� Concrete Overlays (White Topping of Roads) – Revised, updated and expanded version
� Widening and Strengthening of Single Lane Roads under NHDP IV
– Concrete Pavements Option
� Cement in Service of The Nation
***
48th Annual Report
59
MEMBERS OF CEMENT MANUFACTURERS’ ASSOCIATION
1. ACC Limited
Cement House 121, Maharshi Karve Road
Mumbai 400 020 2. Ambuja Cements Ltd
P.O. Ambuja Nagar Taluka Kodinar Junagarh, Gujarat-362 715
3. Andhra Cements Ltd
Sri Durga Cement Works Sri Durgapuram, Dachepalli-522 414 Guntur Distt. (A.P.)
4. Bagalkot Cement & Inds.Ltd
(Formerly Bagalkot Udyog Ltd) Air India Bldg., 14th Floor Nariman Point, Mumbai 400 021
5. Binani Cement Ltd
706, Om Towers, 32, Chowringhee Road, Kolkata - 700 001
6. Birla Corporation Ltd
(Cement Division) Birla Building 9/1, R.N. Mukherjee Road, Kolkata 700 001
7. Cement Corporation of India Ltd
(A Govt. of India Enterprise) Scope Complex, Core No. 5 7, Lodhi Road, New Delhi 110 003
8. Century Textiles & Industries Ltd
Century Cement
Maihar Cement
Manikgarh Cement
Century Bhawan Dr. Annie Besant Road, Mumbai 400 025
9. Chettinad Cement Corporation Ltd
Rani Seethai Hall Building Post Box No.748, 603, Anna Salai, Chennai 600 006
10. Cement Manufacturing Co.Ltd
Village Lumshnong, P.S. Khliehriat Dist. Jaintia Hills, Meghalaya – 793 200 11. Dalmia Cement (Bharat) Ltd
Dalmiapuram - 621 651 Distt. Tiruchirapalli, Tamil Nadu
12. Grasim Industries Ltd (Cement Divn.)
Birlagram, Nagda – 456 331, Madhya Pradesh
13. Gujarat Sidhee Cement Ltd
Siddhigram - 362 276 Off. Veraval Kodinar Highway Taluka Veraval, Distt. Junagarh, Gujarat
14. HMP Cements Ltd *
‘Fairlie House’ 4, Fairlie Place, Kolkata 700 001
15. The India Cements Ltd
“Dhun Building’ 827, Anna Salai, Chennai 600 002
16. J.K. Cement Ltd
Kamla Tower Kanpur 208 001, Uttar Pradesh
17. J.K. Udaipur Udyog Ltd*
P.O. Shripatinagar CFA - 313 021, Distt. Udaipur, Rajasthan
60
18. Jaiprakash Associates Ltd
(Cement Division) Sector – 128, Noida 201 304, (U.P.)
19. Jammu & Kashmir Cements Ltd
(A Govt. of J&K Undertaking) Nawa-I-Subh Complex, Zero Bridge, P.Box No. 149 Srinagar 190 001
20. JK Lakshmi Cement Ltd
Jaykaypuram Distt. Sirohi, Rajasthan
21. Kalyanpur Cements Ltd
2 & 3, Dr. Rajendra Prasad Sarani Kolkata 700 001
22. The K.C.P. Ltd
Ramakrishna Buildings
2, Dr. P.V. Cherian Crescent Egmore, Chennai 600 008
23. Kesoram Industries Ltd
Kesoram Cement
Vasavadatta Cement
9/1, R.N. Mukherjee Road, Kolkata 700 001
24. Lafarge India Pvt. Ltd
Bakhtawar, 14th Floor, 229, Nariman Point, Mumbai 400 021
25. Madras Cements Ltd
Ramamandiram Rajapalaiyam 626 117, Tamil Nadu
26. Malabar Cements Ltd
(A Govt. of Kerala Undertaking) Walayar P.O., Palakkad Distt. - 678 624, Kerala
27. Mangalam Cement Ltd
Adityanagar, Morak - 326 520 Distt. Kota (Rajasthan)
28. Mawmluh-Cherra Cements Ltd
(A Govt. of Meghalaya Undertaking) Taxation Building, (Near Raj Bhawan) Shillong - 793 001, Meghalaya
29. Meghalaya Cement Ltd
Village Thangskari, P.O. Lumshnong, Distt. Jaintia Hills, Meghalaya - 793 200
30. My Home Industries Ltd
9th Floor, Block-3, My Home Hub, Madhapur, Hyderabad - 500 081
31. Heidelberg Cement India Ltd
P.O. Ammasandra, Distt. Tumkur, Karnataka –572 211
32. OCL India Ltd
Rajgangpur - 770 017 Distt. Sundergarh, Orissa.
33. Orient Cement
(Prop: Orient Paper & Inds. Ltd) Bhubaneswar – 751 012, Orissa
34. Panyam Cements & Mineral Inds Ltd
C-1, Industrial Estate, Bommalasatram, Nandyal, Kurnool Distt., Andhra Pradesh 518 502
35. Penna Cement Inds.Ltd
Plot No.703, Sriniketan Colony, Road No.3, Banjara Hills, Hyderabad 500 034
36. Prism Cement Ltd
305, Laxmi Nivas Apartments Ameerpet, Hyderabad 500 016 (A.P.)
37. Rain Commodities Ltd
Rain Centre, 34, Srinagar Colony, Hyderabad –500 073 (A.P.)
48th Annual Report
61
38. Sanghi Inds.Ltd
Sanghinagar–501 511 R.R.Dist., Andhra Pradesh.
39. Saurashtra Cement Ltd
Near Railway Station, P.O. Ranavav - 360 560, Gujarat
40. Shree Cement Ltd
Bangur Nagar, Post Box No.33, Beawar - 305 901 (Rajasthan)
41. Shree Digvijay Cement Co.Ltd
P.O. Digvijaygram – 361 140 Via Jamnagar, (Gujarat)
42. Shriram Cement Works
(A divn. of DSCL) 6th Floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi 110 001
43. Sone Valley Cement Co. Ltd*
Shahi Bhawan, 2nd Floor, Exhibition Road, Patna 800 001, Bihar
44. Tamil Nadu Cements Corp. Ltd
(A Govt. of Tamil Nadu Undertaking) LLA Building, 2nd Floor, 735, Anna Salai, Chennai 600 002
45. UltraTech Cement Ltd
‘B’ Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road Andheri (E), Mumbai 400 093
46. Zuari Cement Ltd
(Italcementi Group) Krishna Nagar, Yerraguntla 516 311 Kadapa Distt, Andhra Pradesh
* Plants closed
CEMENT MANUFACTURERS' ASSOCIATION
SECRETARIAT
SECRETARY GENERAL Shri N.A. Viswanathan
ACTING SECRETARY Shri S.K. Dalmia JOINT SECRETARY Shri S.V. Joshi Shri G.Y. Narayana Shri N.K. Pande
SR. DY. SECRETARY Shri Jainender Kumar Shri H.K. Panchal
Shri Rakesh Gupta EDP MANAGER Shri Piyuesh Aggarwal EDP OFFICER Shri J. Srinivasan
SR. ASSISTANT SECRETARY Mrs. Inderjeet Kaur ASSISTANT SECRETARY Shri N.S. Pawar
Shri C.S. Pant
AUDITORS
Messrs K.S. Aiyar & Co. Chartered Accountants
48th Annual Report
CEMENT MANUFACTURERS’ ASSOCIATION (Website : www.cmaindia.org)
Corporate Office Mumbai Office
CMA Tower,
A-2E, Sector 24,
Noida -201301 (U.P.)
Tel: 0120-2411955, 2411957, 2411958, 2411764
Fax: 0120-2411956
Email: [email protected]
Express Building, 1st Floor,
Indian Merchants’ Chamber Marg,
Churchgate, Mumbai - 400 020
Tel: 022 -22049691, 22851304
Fax: 022 -22040582
Email: [email protected]
Registered Office
Vishnu Kiran Chamber,
2142-47, Gurudwara Road,
Karol Bagh, New Delhi – 110005
Tel: 011- 28753206, 28751307
Fax: 011-28758476
