Construction boom fuels cement demand: Survey | india | Hindustan Times
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Construction boom fuels cement demand: Survey

Resurgence in construction activity ensured a healthy growth of the cement industry, which shot up 10.9% in the first 9 months.

india Updated: Feb 27, 2006 17:04 IST

Resurgence in construction activity ensured a healthy growth of the cement industry, which shot up 10.9 per cent in the first nine months of this fiscal, even though steel, another key infrastructure component, witnessed a marginal decline.

According to the pre-budget Economic Survey tabled by Finance Minister P Chidambaram in Parliament on Monday, the cement industry continued its impressive performance both in terms of production and exports.

"Installed capacity of production was augmented during 2004-05 and in view of the growth trend in the last few years, a production of 142 MT was set for the year 2005-06," the survey said, pointing out that during the period April-October 2005, production of 82.26 MT (provisional) had already been achieved.

This was 9.39 per cent higher than the production in the corresponding period of the previous year, it said, adding that efforts to generate adequate domestic demand to meet excess production capacity, were being made.

The survey said cement exports stood at 10.6 MT in 2004-05, up from 9MT in 2003-04. The exports during April-October 2005 were 5.10 MT.

On the steel front, the survey said production had declined marginally after rising consecutively for the last three years.

"Steel production posted a growth of 7.1 per cent during April-December 2005, which was slightly lower than 7.5 per cent recorded in the corresponding period last year," it said, adding that this was expected to improve in the last quarter of the current fiscal becase of the lower base.