Cement supply to govt sector dips, developmental works await funds

The quantity of cement ordered for works in the government sector has registered a dip in the last two years, indicating a decline in the quantum of developmental works.

Various companies like Ultra Tech, ACC and Ambuja Cements Limited supply cement to the state government for developmental projects on a subsided rate.

Figures secured from the Food and Civil Supplies Corporation, which is entrusted with the task of finalising the rate contract, reveal as against 6,02,081 MT cement bought by the government on rate contract in the financial year 2022-23, it was reduced by 1,41,912 MT to 4,59,169 MT in 2023-24. It was further scaled down to 4,39,488 MT in 2024-25 thus bringing about an effective decrease of 1,61,593 MT in the last two years.

He added in 2023 the ACL and ACC firms supplied 2,88,205.5 tonnes of cement to the state government and in 2024 it registered an increase to 369725.5 tonnes, which was less than the previous years.

A nominal increase is usually implemented in the rate of cement by the corporation every year after inviting tenders and holding negotiations with the cement companies.

“Since the cement is sold on a subsidised rate for the government works vis-à-vis its commercial rate, the companies have not evinced much interest in addressing the queries raised by the corporation before finalising the new rate contract for the current year,” said a senior official of a major cement firm.

Various government schemes, like Pradhan Mantri Gramin Sarak Yojana, are facing delay in obtaining various clearances. “With paucity of funds for various developmental works like hospitals, repair and maintenance of government buildings as well as schools, which were damaged in the 2023 monsoon floods, the utilisation of cement has sizably reduced,” said a government contractor from Solan.

Several projects which require the state to pool in its 10 per cent share were also hanging fire. In panchayats, works like construction of ambulance roads, community water tanks, community halls, etc, also suffered as funds were scarce.

With the government contractors awaiting their payment since seven months, few works were being executed. In Solan alone, 90 Public Works Department (PWD) contractors have been awaiting payments since November 2024. They have stopped the work on 17 civic projects due to pending bill payments.