Cement, Energy and Environment

SUSTAINABLE INFRASTRUCTURE HIGHWAY-BUILDING COSTS ARE RISING The Union Road Transport Minister Kamal Nath on 15.11.2010 said the ministry's proposal to raise the per-km cost to build highways is still under the consideration of the Planning Commission. He, however, did not peg a deadline by when the revised benchmarks would be in place. The ministry had proposed a hike in per-km construction cost of four-lane highways from Rs . 9.5 crore to Rs. 12 crore. In case of six-lane highways, the ministry wanted the per-km cost to be Rs. 13.5 crore compared with Rs 10 crore now. The proposal was submitted by the road transport ministry in July this year, after the National Highways Authority of India (NHAI) expressed inability to build roads at the given cost. The BK Chaturvedi Committee on road, set up by the Prime Minister last year, is examining the matter. Sources close to the development said that Nath, during an empowered group of minister (EGoM) meeting last month, asked Montek Singh Ahluwalia, the deputy chairman of Planning Commission, to fast track the setting up of fresh per– km cost benchmark in the context of the rising input costs, as well as, inflationary pressure. Courtesy: DNA, New Delhi, 16. 11.2010. SUSTAINABLE DEVELOPMENT INDIAN CEMENT INDUSTRY'S MARCHTO REACHTHE298 MILLION TONNE TARGET David Hayes explains how the Indian Cement Industry is on target to reach its 298 Million Production Capacity target in 2012. Introduction Strong economic growth and sustained government infrastructure investment have boosted India's construction industry over the past decade, lifting demand for high quality cement most years as the pace of development grows across the country. With India largely unaffected by the international economic downturn and the construction sector poised for further expansion in years to come, the nation's fast growing cement industry is firmly on course to achieve the government's ambitious 11th India Plan target calling for a near doubling of the national cement production capacity and a 90 per cent rate of cement capacity utilization in two years' time. "The government working group for the cement industry, chaired by the Secretary of the Ministry of Industry, has targeted 298 million t of cement production capacity and production of 269 million tpa by the end of the 11th India Plan period (2007 - 2012 ). We will be able to achieve the target," commented S. V. Joshi, Joint Secretary of India's Cement Manufacturers Association (CMA). "Some 77 million t of production capacity was added during the first three years of the 11th Plan and we will be able to add another 55 to 60 million t capacity during the next two years. The cement industry is geared to achieve the government's target." Keeping up with demand The additional production capacity being installed will enable the cement industry to keep pace with future growing demand. Currently, about 20 per cent overcapacity, a significant portion of the industry's excess capacity, is being exported, mainly to the Middle East and Nepal. "Demand for cement is increasing at a double digit growth rate, though this depends on the Indian and global economy," Joshi remarked . "India is not affected that much by the global recession compared to the United States, Europe and other areas." The construction industry has started improving this year, so naturally cement demand is rising ; demand did not drop last year. Approximately 8 -9% growth in demand is expected in the coming years. Growing demand is a result of government as well as private investment. The housing construction market, for example, has grown in recent years as the government continues efforts to increase the supply of low cost housing, while private developers are planning new high rise apartment schemes aimed at the expanding urban middle class. "There is housing shortage. Both government and private housing construction is going on as there is a shortage," Joshi 87