INDIA: Companies agree to lower cement prices

With chief minister Virbhadra Singh toughening his stand on the issue of cement being sold in Himachal Pradesh at rates higher than the neihgbouring states, cement companies have finally agreed to lower the price by Rs 15 to Rs 35 in the border areas. The cement price has remained a political issue in the state and the development has come days before the start of the monsoon session of the assembly.

A decision was also taken to reduce the cement price from Rs 15 to Rs 25 in other parts of the state. It was also decided that the companies will submit quarterly statement of comparative rates of cement being sold in border areas and other parts of the state to the director (industries) and the pricing formula for Himachal will continue as per the above decisions in the future.

A decision to this effect was taken in a meeting chaired by the CM. Also present in the meeting were industries minister Mukesh Agnihotri and the representatives of cement companies, including ACC, Ambuja and Jaypee, having their plants in Himachal Pradesh. All the three companies have now agreed in principle to lower the rates of cement in border areas of the state from Rs 15 to Rs 35 or bring them on a par with the rates prevailing in the neighbouring states, officials said.

The CM in the beginning of the meeting made it clear to the companies that the government would not tolerate cement being supplied at higher rates to people of the state as compared to its neighboring states, where the prices were low. "The government has given land to these plants to operate in the state, besides many other facilities like water and power, among others. We want people to get cement at cheaper rate," he added.

Giving clear message to the representatives of cement companies, Virbhadra said the first thing they should keep in mind was the interest of the state people.

A similar meeting was held earlier in the chamber of industries minister where all the heads of cement companies were present and all the issues pertaining to cement prices and other related matter were discussed. Mukesh Agnihotri said when the government was providing all facilities to the cement companies within the state, they should not be autocratic and not take decisions as per their convenience while ignoring the interest of the state.