China is expected to include urban garbage and sewage sludge disposal into the 12th Five-Year Plan (2011 -2015) for the cement industry, said Kong Xiangzhong, secretary genera l of the China Cement Association on Thursday.
The association is lobbying the National Development and Reform Commission (NDRC), the top economic planner, to encourage companies i n the cement industry to invest in urban garbage and sewage sludge tre atment and give them tax breaks and subsidies during the 2011 to 2015 period, he said.
Since 2009, the China Cement Association has been suggesting th e use of cement rotary kilns for the disposal of industrial waste and urban garbage. Later, the Ministry of Finance, the State Administratio n of Taxation, and the National Development and Reform Commission deci ded to grant corporation tax breaks for the disposal of industrial was te, hazardous waste, domestic garbage, and sludge, by cement kilns.
The move has encouraged a slew of cement companies including A nhui Conch Cement (600585.SH) and Huaxin Cement (600801.SH) to start s ludge and waste disposal by kiln.
However, such projects involve huge investment and cannot gener ate real income for the companies, industry insiders said. Cement comp anies find it hard to recover the costs of such projects.
The insiders suggested the government should grant landfill and incineration subsidies and called for better co-ordination of the dif ferent government departments to ensure more efficient delivery of sub sidies.
Also, the government should improve environmental standards for garbage and sludge disposals, they urged.
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