Fast rising Government Expenditure on Infrastructure sector in India has resulted a higher demand of cement inthe country. In the same direction, participation of larger companies in the sector has increased.For raising efficiency in the sector, the Planning Commission of India in the 10th plan has formed a 'WorkingGroup on Cement IndustryThere is a total number of 125 large cement plants and more than 300 small cement plants operating in Indiapresently.
The cement industry comprises of 125large cement plants with an installedcapacity of 148.28 million tonnes andmore than 300 mini cement plants withan estimated capacity of 11.10 milliontonnes per annum.The Cement Corporation of India, whichis a Central Public Sector Undertaking,has 10 units. There are 10 large cementplants owned by various StateGovernments. The total installedcapacity in the country as a whole is159.38 million tonnes. Actual cementproduction in 2002-03 was 116.35million tonnes as against a production of 106.90 million tonnes in 2001-02,registering a growth rate of 8.84%.
Major players in cement productionare Ambuja cement, Aditya Cement,J K Cement and L & T cement.
Apart from meeting the entire domesticdemand, the industry is also exportingcement and clinker. The export of KPMG Consultancy Pvt. Ltd. The report submittedby the organization has made severalrecommendations for making the Indian CementIndustry more competitive in the internationalmarket. The recommendations are underconsideration.
Cement industry has been decontrolled fromprice and distribution
on 1st March 1989 andde-licensed on 25th July 1991. However, theperformance of the industry and prices of cementare monitored regularly. Being a keyinfrastructure industry, the constraints faced bythe industry are reviewed in the InfrastructureCoordination Committee meetings held in theCabinet Secretariat under the Chairmanship of Secretary (Coordination). The Committee onInfrastructure also reviews its performance.
Continuous technological upgrading andassimilation of latest technology has been goingon in the cement industry. Presently 93 per centof the total capacity in the industry is based onmodern and environment-friendly dry processtechnology and only 7 per cent of the capacity is