Cement supply for govt works dips

Ambika Sharma

Solan, June 9

Cement sales to the government sector have dipped by 17 to 50 per cent in the three major cement manufacturing units in the state for April and May as hardly any new development works were being initiated.

Less new projects

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• Hardly any new development works initiated
• ACL’s supply of 14,310 bags of cement in April dipped to 11,407 bags in May
• ACC supplied only 13,224 bags of cement in May against 15,396 bags in April
• Ultratech’s supply dipped from 7,631 bags in April to 6,418 bags in May

Three major cement manufacturers Ambuja Cements Limited (ACL), ACC and Ultra Tech supply cement to the civil supplies corporation for various development works, including construction of roads, buildings and works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The cash-strapped state government is yet to make payments to the contractors since January and few new projects have been started in this financial year since April. This has led to a sharp dip in the supply.

In April, the ACL supplied 14,310 bags of cement, the ACC plant supplied 15,396 bags while Ultra Tech supplied 7,631 bags. This figure dipped in May as the ACL supplied 11,407 bags, the ACC 13,224 and Ultra Tech 6,418 bags, according to the figures secured from the cement companies.

Figures procured from the cement plants revealed that the ACL faced a 17 per cent cut in its supply as against 25 per cent faced by the ACC and 30 per cent by Ultra Tech in April this year vis-à-vis last year. An overall deficit of nearly 24 per cent was faced by all three units in supply of cement.

In May, the situation has worsened with the ACL alone facing a shortfall of 40 per cent while in the case of the ACC this figure was as much as 50 per cent and for Ultra Tech it was 42 per cent vis-à-vis last year. An overall deficit of 44 per cent has been registered by the cement plants for this month against last year’s figures.

A Public Works Department official said nearly 155 tenders have been floated for various development works and demand would pick up soon.