To save costs, Builders Association of India has taken the initiative to purchase cement bags in bulk from a major manufacturing company in Hyderabad and then supply them to the region, a top BAI official said on February 5. Through bulk purchase of cement, the builders and construction industry could save Rs 17-Rs 27, depending on the destination and route since the bags would be transported through Railways, K Vishwanathan, National vice president said.
The BAI’s deal with the company, Bharati India, which has a manufacturing capacity of one million tonne, is likely to be finalised in a couple of days and the Association is in the process of collecting details of requirement from each region, Vishwanathan said. Coimbatore alone requires 4,000 tonne of cement per month, he added.
While cement would be cheaper by Rs 10 in Andhra Pradesh and dearer by Rs 10 in Kerala, Tamil Nadu and Karnataka prices would be similar. BAI has also decided to import bitumen from Iraq, through which arrangement there would be an advantage of Rs 4,000, as the prevailing domestic rate was Rs 44,000 per tonne being purchased from oil companies in India, he said.