The cement industry experts predict that Telangana state, along with the setting up of a new capital, will bring along opportunities in infrastructure development. Experts are looking forward to investment of around Rs 1 lakh crore. Cement companies are not expecting any operational problems arising out of the Telangana’s split from the united Andhra Pradesh. Although, they may have to register freshly for sales tax and other purposes.
Among Indian states, Andhra Pradesh is the largest cement producing state, with ample limestone deposits that can last for several years. Andhra Pradesh has about 46 plants including some small plants with combined capacity of 80 million tonne of the total all India capacity of 325 million tonne.
The cement industry stands to gain in case the new state decides to take up more infra projects, and makes investment in housing and urban development. Due to political uncertainty in AP, which led to delay in projects across sectors, cement consumption had fallen by about four per cent. Major cement plants in the state were running at less than 50 per cent of installed capacity.