Andhra Pradesh government is planning to procure more than 2 million tonne of cement this year from cement companies those have factories in Andhra Pradesh for its infrastructure and social development projects.
The move will benefit large players such as India Cements, Ramco Cements, Dalmia Cements, My Home Cements and Bharathi Cements, and some small players. According to official estimates, the state government will need over 2.2 million tonne of cement in 2015-16. This will be procured only from local manufacturers. The major demand will be for irrigation projects, which will take about 1.5 million tonne, housing 3,00,000 tonne, local administration 2,38,000 tonne, and roads 2,19,000 tonne. The state has pegged the ex-factory price for cement it plans to procure based on the grade and location of the unit. The price ranges from about Rs 170 a bag to Rs 205 excluding taxes, duties and freight charges, according to industry sources.