Concrete

A Transformative Budget

Published

3 months ago

August 23, 2024

Roshna

The recent budget announcements by Finance Minister Nirmala Sitharaman have established a robust framework for India’s infrastructure and housing sectors, signalling a transformative phase for the cement industry. The substantial increase in capital expenditure to Rs.11.11 trillion in FY25, up from `10 trillion in 2023-24, highlights the government’s steadfast commitment to fostering economic growth through strategic investments. This allocation, representing 3.4 per cent of the GDP, aligns with the vision outlined in the interim budget earlier this year and emphasises the prioritisation of infrastructure development.
A significant aspect of this budget is the enhancement of the Pradhan Mantri Awas Yojana (PMAY) – Urban by 8 per cent, primarily due to the Rs 40 billion Credit-Linked Subsidy Scheme (CLSS). This increase occurs even as allocations for welfare schemes like PMAY-Rural and MNREGA remain consistent with the interim budget. Such focused fiscal measures are crucial, given that housing and infrastructure together account for over 80 per cent of the nation’s demand for cement. Consequently, the cement industry stands to benefit substantially from these increased allocations, fostering optimism and driving growth within the sector.
The focus on Bihar and Andhra Pradesh with special infrastructure development packages is particularly notable. Bihar is set to receive
Rs.260 billion for four major projects, while Andhra Pradesh has been allocated Rs.150 billion for the fiscal year 2025 under the Andhra Pradesh Reorganisation Act. These investments are essential for regions that have experienced stagnation in state-funded projects over recent years.
The strategic investments by major companies, such as the Adani Group’s Rs.16 billion commitment for a grinding unit in Bihar, exemplify the industry’s positive response to these governmental initiatives. Such investments not only bolster the local economy but also reinforce stakeholder confidence in the long-term prospects of the cement industry.
The Union Budget’s substantial allocations and targeted initiatives pave the way for sustainable growth within the cement sector. This budgetary generosity enables the Indian cement industry to envision a future filled with opportunities, driving innovation and expanding capacities to meet the growing demand.
As we navigate this transformative landscape, it is crucial for all stakeholders to synergise efforts and harness these opportunities to their fullest potential. The road ahead is promising, and with concerted action, the cement
industry can continue to dream big and significantly contribute to India’s infrastructural renaissance.

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Concrete

Steelmakers’ Debt Rises 25% Amid Capex Drive

The debt levels of steelmakers will rise by more than Rs 40,000 crore this fiscal year

Published

12 hours ago

December 3, 2024

admin

Domestic steelmakers are expected to see a significant rise in their net leverage to over 3x this fiscal year, driven by a 25% increase in debt due to ongoing capital expenditure (capex) projects. According to a report by Crisil Ratings, the debt levels of major steelmakers will rise by more than Rs 40,000 crore this fiscal year, marking a return to levels seen in fiscal 2020. This increase in debt is largely due to the ongoing capex cycle, with Rs 70,000 crore planned for the current and next fiscal years, aimed at expanding steelmaking capacity by 30 million tonnes per annum (mtpa) by fiscal 2027.

While the rise in debt may strain financial metrics, steelmakers are expected to improve efficiency and increase capacity, boosting long-term growth. However, profitability has come under pressure due to falling steel prices and rising imports. Steel prices are expected to fall by 10% this fiscal year, driven by increasing imports, especially from China. Despite an increase in demand and volume, lower realizations are expected to reduce operating profit margins.

Concrete

NCB Signs MoUs for Decarbonisation in Cement Industry

One MoU was signed between NCB and GCCA India

Published

12 hours ago

December 3, 2024

admin

The National Council for Cement and Building Materials (NCB), under the Ministry of Commerce & Industry, has signed two landmark Memorandums of Understanding (MoUs) to advance decarbonisation and technological innovation in the Indian cement industry. The MoUs were signed during the 18th NCB International Conference and Exhibition on Cement and Concrete, held at Yashobhoomi, IICC Dwarka.

One MoU was signed between NCB and the Global Cement and Concrete Association (GCCA) India to promote research on decarbonization efforts within India’s cement sector, aiming for a “Net Zero” industry by 2070.

The second MoU, signed with AIC-Plasmatech Innovation Foundation, focuses on exploring the application of Thermal Plasma Torch Technology in cement production, which could enhance the sustainability and efficiency of the manufacturing process.

Concrete

MPCB Bans New Ready-Mix Concrete Plants in MMR

Existing plants are required to implement anti-dust measures

Published

12 hours ago

December 3, 2024

admin

In response to worsening air quality, the Maharashtra Pollution Control Board (MPCB) has announced a ban on the establishment of new ready-mix concrete (RMC) plants within the municipal corporation limits of the Mumbai Metropolitan Region (MMR). Existing plants are required to implement anti-dust measures and conduct water sprinkling on vehicle tyres over the next three months.

Failure to comply with these new regulations could result in the seizure of bank guarantee deposits and potential plant closures, MPCB officials warned.

MPCB’s directives also stipulate that new captive RMC plants outside municipal areas must allocate at least 10% of their land for plant construction and enclose the site with tin or similar materials. Non-compliance will be met with a bank guarantee of Rs 10 lakh.

New commercial RMC plants must maintain a 500-meter buffer zone from populated areas and ensure compliance with environmental standards. All plants must also monitor air quality at their boundaries.

MPCB has stressed the importance of collaborating with civic authorities in MMR to curb pollution and maintain air quality standards.