Cement makers meet Chidambaram

New Delhi: Captains of Indian cement industry on Tuesday met the Union Finance Minister, Mr P. Chidambaram, to discuss the price hikes effected by them following the presentation of Budget 2007-08.

This meeting assumes significance as it comes a day after the industry rejected Government's request to roll back the price increases.

This is also the first official meeting of cement companies with the Finance Minister after the Budget had introduced a dual excise duty structure aimed at lowering prices.

Sources said that top management of India Cements, Gujarat Ambuja and Jaiprakash Associates among others represented the cement industry at the meeting with the Finance Minister.

However, there was no official word on the outcome of the meeting.

Meanwhile, Mr Ajay Dua, Secretary, Department of Industrial Policy and Promotion told reporters that cement makers have promised to invest Rs 45,000 crore for adding close to 100 million tonnes of capacity during the 11th Plan period of 2007-12.

India currently has a cement capacity of about 165 million tonnes. Mr Dua also said that increasing cement imports would not help lower prices of the building material.

He pointed out that imported cement was expensive and also that India does not have dedicated terminals to handle cement shipments.