CEE Jan-Mar 2012

INDIA SIGNS PACT WITH AFGHANISTAN FOR CEMENT INDUSTRY India and Afghanistan have signed a bilateral agreement to strengthen co-operation in various industries including cement. Under the agreement, Indian companies would be invited to bid in Afghanistan infrastructure projects. Indian cement makers would also be encouraged to sell cement or set up facilities in the country. The two governments say that both sides will now begin the tender and awarding process soon. The governments, however, did not disclose additional details of the agreement. India and Afghanistan are increasingly developing economic ties as evidenced by the number of economic agreements signed by both the countries. Afghanistan's cement demand is expected to increase dramatically as the country seeks to modernize and build up its infrastructure. Courtesy: Construction Industry Review, Jan. 23, 2012, P10. CEMENT INDUSTRY SEEKS DUE RECOGNITION AS INFRASTRUCTURE ENABLER The cement industry has asked for the simplification and rationalisation of excise, duty– free import of fuel and raw materials and correction of skewed import policies relating to cement, according to Mr M.A.M.R. Muthiah, President, Cement Manufacturers Association. Rising cost of imported coal, and raw materials such as gypsum are impacting the industry, which is a key com– ponent in infrastructure de– velopment. The prevailing policies tax import of fuel and raw materials, but allow duty– free import of the final product cement. The cement industry body is hoping that the Government corrects this imbalance in the 2012-13, Union Budget, he said. The 5 per cent customs duty on imported coal has to be waived, as also the customs duty on pet coke, gypsum and other inputs, he said. Particularly considering that cement is a core industry, but is not given priority status in coal allocation and is largely dependent on imported coal for more than half its requirement, he said. Excise Duty Excise duty should also be brought down from the prevail ing levels and the levy should be simplified. If steel attracts just 8 per cent why should cement, a closely allied product, be subject to not just a higher excise duty of 10 per cent, but also an additional specific component of around Rs 160 a tonne. This is a complicated system with ad valorem rates and specific rates linked to cement prices. The excise duty should be simplified and limited to either specific rate or ad valorem. Industry representati ves pointed out that the specific component ranges from Rs 80 a tonne to Rs 160 and on clinker Rs 200 a tonne. Another crucial issue is to treat investments in waste heat recovery systems being implemented in cement plants on par with renewable energy in terms of incentives like income tax concession and accelerated depreciation. Each cement plant has a potential to generate over 4-5 MW from conserving the ex– haust heat, Mr Muthiah said. Fly Ash Similarly, fly ash, a waste from power plants, which was to be supplied free to cement plants, is now being tendered out by some States for Rs 500- 600 a tonne. When taking into consideration the cost of transport and blending with cement, the costs are comparable to clinker. This issue has to be addressed as the concept of giving fly ash for blend ing was built on the principle of 'polluter pays.' The industry is also pushing for policies to encourage establishment of concrete roads, which other than benefitting the industry, is cheaper and more efficient option in the long run compared to bitumen surfaces, he said. Courtesy: The Hindu Business Une, February 9, 2012, Chennai. BANGALORE BEST INDIAN CITY TO LIVE IN, SAYS SURVEY India's IT hub Bangalore has left behind four metros Delhi, Mumbai, Chennai and Kolkata - to emerge as number one in quality of living, according to a global survey. Chennai tops the list among Indian cities on personal safety rankings. Out of the total 221 cities all over the world, however, Bangalore has a rankof141. National capital New Delhi follows Bangalore at 143rd rank, while financial capital Mumbai is placed at 144. Chennai is ranked 150 while Kolkata is one place behind at 151 . European cities dominate the top 25 slots with Vienna emerging as the city with the highest quality of living. German and Swiss cities are in the top of the ranking, with three cities each in the top 10. Zurich (2) is followed by Munich (4), Dusseldorf (5), Frankfurt (7) and 69