According to CARE Ratings, six states will drive the cement capacity expansion in the next phase. Telangana, Andhra Pradesh, Odisha, Rajasthan, West Bengal and Uttar Pradesh are the key states expected to witness capacity addition of around 120 mtpa over the next decade.
Cement production is expected to cross 310 million tonne during FY19. We expect cement production to grow by 5.5-6.5 per cent during FY19. Housing and real estate segment demand is expected to grow by around 6-7 per cent whereas demand from infrastructure segment is expected to grow by 8-10 per cent.
The credit policy has fixed the maximum all inclusive cost for masala bonds. CARE Ratings has put together some information on companies which have borrowed such funds and the cost incurred as interest on them. it will be interesting to see as to how firms react to this new norm as they compare these rates with domestic borrowing costs.
According to CARE Ratings agency, investment in road and bridge sector is projected at Rs 9.20 lakh crore during the Twelfth Five Year Plan period ending March 2017, as against Rs 5.16 lakh crore invested during the Eleventh Five Year Plan period ending March 2012.