ABSTRACT

Cement Procurement of Cement for Rural Development and Panchayat Raj

Department works through Tamil Nadu Cements Corporation Limited Extension of
Rate Contract period from 29.12.2011 to 31.03.2012 Orders issued.
Rural Development and Panchayat Raj (CGS.1) Department.
G.O. (2D) No. 9

Dated :

06.02.2012

Read :
(1)
(2)

From the Chairman and Managing Director, TANCEM, Letter No.

Tancem/Mkg/ RD& PD/ 2012, dated 27.1.2012.
From the Commissioner of Rural Development and Panchayat Raj
Department letter No.68665/08/TU3, dated 27.1.2012.
******

ORDER:
In the letter first read above the Chairman and Managing Director, Tamil Nadu
Cements Corporation Limited has stated that Tamil Nadu Cements Corporation Limited
had floated a Tender for a quantity of 5.93 lakhs MTs of OPC 43 Grade for supply of
cement to Rural Development and Panchayat Raj Department. M/s.Madras Cements,
M/s. India Cements and M/s. Ultra Tech were the successful Tenderers. Since their
offered quantity were only 2.88 lakhs MTs. M/s. Chettinad Cement and M/s. Dalmia
Cements were requested to match with the finalized rate of Rs.200/- per bag from the
then existing Tender as per G.O. (2D) No.65 Rural Development and Panchayat Raj
(CGS.1) Department, dated 27.9.2010. Due to Assembly election followed by Local
Body Election from February 2011 to October 2011, the off take of cement by Rural
Development Department had declined drasticly and at one stage there was nil
requirement. Therefore cement stock at Alangulam and Ariyalur units piled up. As a
result Tamil Nadu Cements Corporation Limited incurred loss due to stoppage of
production. While pursuing for orders, Rural Development and Panchayat Raj
Department informed that there were no requirements due to Elections.
2. The Chairman and Managing Director, Tamil Nadu Cements Corporation
Limited has also stated that similarly procurement of cement from private manufacturers
has been stopped. Consequently in the requirements of 5.93 lakhs MTs indicated and in
the offered quantity of 3,97,131 MTs only 1,41,144 MTs. could be lifted. The following
are the details of the quantity to be supplied by the private manufacturers.
..2

-2(Qty. in MTs)
Company

Offered / Balance

Qty Supplied

Balance

Madras Cements Ltd.

175000

71373

103627

Chettinad Cement Ltd

102946

39750

63196

5861

5861

India Cements Ltd.

53000

10400

42600

Ultra Tech

60324

13760

46564

397131

141144

255987

Dalmia

Cements

Ltd.

(Avnija)

TOTAL

The contract period of the above Tender expired on 29.12.2011. As per the Rural
Development and Panchayat Raj Department letter No.24353/CGS.1/2011-2 dated
31.10.2011 Tamil Nadu Cements Corporation Limited already floated tender for 7.00
lakhs MTs and it is under process. Now the Commissioner of the Rural Development
and Panchayat Raj start placing orders for a heavy volume of cement. Tamil Nadu
Cements Corporation Limited has a limitation in its production capacity and unable to
meet the entire requirements.
3. Therefore, the Chairman and Managing Director, Tamil Nadu Cements
Corporation Limited, has proposed to exhaust the balance quantity by extending the
above rate of contract period from 29.12.2011 to 31.3.2012 at the rate of Rs.200/- per
bag since the market trend is upward.
5. In the letter second read above, the Commissioner of Rural Development and
Panchayat Raj has requested the Government to consider the proposal submitted by
the Chairman and Managing Director, Tamil Nadu Cements Corporation Limited, since
there is no change in the tendered rate (original rate) of Rs.200/- per bag and is also
below the current market rate and will also ensure reasonable progress of the Honble
Chief Ministers Solar Powered Green house Scheme.
6. The Government after careful examination of the proposal of the Chairman
and Managing Director, Tamil Nadu Cements Corporation Limited order to exhaust the
balance quantity of 1,66,823 MTs out of 2,55,987 MTs by extending the contract period
from 29.12.2011 to 31.3.2012 at the rate of Rs.200/- per bag from M/s. Madras
Cements and M/s. Chettinad Cements.
(BY ORDER OF THE GOVERNOR)
N.S PALANIAPPAN,
PRINCIPAL SECRETARY TO GOVERNMENT.
To
The Chairman and Managing Director,
Tamil Nadu Cements Corporation Limited, Chennai- 600 002.

-3The Commissioner of Rural Development and Panchayat Raj,

Pangal Building, Saidapet,
Chennai - 600 015.
Copy to:
The Special Personal Assistant to Honble Minister (M.A & R.D),
Chennai 9.
Industries Department, Chennai - 9.
Finance Department, Chennai 9.
//Forwarded //by order//

SECTION OFFICER.