Tamil Nadu government to offer new cement brand at subsidised rates

The Tamil Nadu government is set to launch a new cement brand—Valimai, at a subsidised price in the open market through Tamil Nadu Cement Corporation (Tancem).

Tancem is already producing and selling Arasu cement at prices much cheaper than private brands. State industries minister, while announcing the Valimai brand, told the media that since March this year, cement cost had surged by 4.7% due to coal shortage, the cost increase for coal and transit costs for coal imports.

In a statement, the minister said that 30,000 tonnes of cement would be marketed monthly in the initial phase to decrease the retail price. In one or two weeks, Tancem will launch the new brand Valimai.

The agency is already marketing 90,000 tonnes of cement under the brand Arasu cement in the open market every month. Additionally, the low-priced and high-quality Valimai brand will be launched. With this, the retail cost will dip, Thennarasu said. The cement rate was hovering about Rs 470-Rs 490 per bag on October 6, but it dropped to Rs 440-Rs 450 due to the government’s intervention, he said.

Tancem’s Ariyalur and Alangulam cement plants managed to generate 8.13 lakh tonnes in 2020, and the agency hopes to produce 15-17 lakh tonnes this year with the demand soaring. The sale of low-priced Amma cement from Tancem for the economically weaker sections also picked up after the Covid second wave. It sells around 25,000 tonnes a month.

An individual with a yearly income not surpassing Rs 3 lakh could get 750 bags of cement at Rs 216 per bag through online booking, given the applicant attaches village administrative officer and revenue inspector’s certificates to verify the credentials. The sale value of Amma cement was set by a committee last December.

Meanwhile, AIADMK joint coordinator Edappadi K Palaniswami slammed the DMK government for not executing its poll promise of bringing construction material under the list of essential commodities and decreasing their value.

As against Tamil Nadu, construction activities are higher in Delhi, Andhra Pradesh, Karnataka and Telangana. A high volume of cement is produced in Tamil Nadu, yet the cost is high in the state, Palaniswami said, adding it had impacted the poor. While the construction cost was Rs 2,200 one sqft in January 2021, it has surged to Rs 3,100 one sqft now, he said. Cement rates did not rise alarmingly anywhere else in the nation.

Cement is marketed at Rs 350 per bag in Delhi, Rs 370 in Andhra Pradesh, Rs 360 in Telangana and Rs 380 in Karnataka, while it is Rs 480 in Tamil Nadu, he said. Rates of other construction materials are also 30% more in Tamil Nadu as against other states, Palaniswami said.

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Also read: Cement prices to rise in second half of FY22: HDFC Securities report
Also read: Cement production to increase by 12% in FY22: ICRA report