Royalty on cement grade limestone must be lowered

The Indian cement industry with a total capacity of about 157 m tonnes in FY06, is the second largest market after China. Although consolidation has taken place in the Indian cement industry with the top five players controlling almost 50 per cent of the capacity, the balance capacity still remains pretty fragmented.

Despite the fact that Indian cement industry has clocked a production of more than 100 m tonnes for the last four consecutive years, the per capita consumption of around 125 kgs compares poorly with the world average of over 260 kgs and more than 450 kgs in China. This, more than anything, underlines the tremendous scope for growth in the Indian cement industry in the long term.