Dalmia Cement (Bharat) Limited

CEMENT
· Investment in Infrastructure
A rapidly progressing infrastructure sector in India can help us achieve what we have done in the last 60 years in a span of just 6 years now. We urge the government to focus aggressively on infrastructure development by way of increasing the investments in infrastructure and incentivizing the industry. This will accelerate the growth in cement industry and will go a long way towards overall economic development.
· Reduce VAT to 4%
The industry also demands that the VAT rate on cement be brought from 12.5% to 4% in line with other important construction materials such as steel. Further, the industry expects cement to be included in the "Declared Goods" just like steel.
· Excise duty abatement – 35 % or 55%
Grey Cement is the only product where excise duty is charged on MRP basis without abatement. Even if abatement is provided, Government revenues will get adequate protection. This will result in an impact of Rs. 10 – 15 per bag at 35% and 55% abatement respectively.
NCAER also recommended an ad valorem duty with 55% abatement on cement in their 2005 report.
Consumer to benefit as Industry will pass on the Cost decrease due to this measure.
· Concrete roads
We seek the support of the Central & State Govt. to promote concrete roads instead of bituminized roads. The maintenance cost of concrete roads is quite low compared to the bituminized roads. Moreover, the erosion is low and they have a longer life. Also the wear and tear of motor vehicles is low when they ply on concrete roads. The move will also bring in fuel cost savings.
· Export ban to be lifted
There is no impact on inflation (weightage of cement in WPI is 1.7% only). Lifting of export ban will encourage investment in new capacities. Indian cement industry will otherwise loose out the opportunity in the middle-east to other countries like Pakistan.
· Create non-tariff barriers for Import of cement from Pakistan
Indian companies pay excise duty while imported cement is exempted from CVD. It is suggested to re impose CVD on imports to create a level playing field.
· 100% coal linkages and allocation of coal blocks
Supply of coal at linkage price to cement industry was cut to 75% recently. Coal India modified the commitment in the fuel supply agreement (FSA) to 45% at linkage rates, which will further increase the energy costs.
Many cement Plants are completely dependent on imported coal. Govt. should immediately restore 100% coal linkages and allocate coal plants to cement industry (both existing and new) on priority basis
· Certainty about GST
Look forward to clarity on the direct & indirect tax code. Would like more certainty about when GST is going to come into play
· Vision for Global competitiveness
We would like to get direction & pointers to enhance the competitiveness of our manufacturing with that of Chinese. Envision a clear road map to capture space in the global arena.
Dalmia Cement (Bharat) Limited

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About Dalmia Cement (Bharat) Limited
DCBL, with a total income of Rs. 1779 crore in FY 09 and an expected total gross income of around Rs 3,000 crore has business interests in two major segments, Cement and Sugar. It has cement plants in southern states of Tamil Nadu (Dalmiapuram & Ariyalur) and Andhra Pradesh (Kadapa), with a capacity of 9 million tonnes per annum. A leader in cement manufacturing since 1939, DCBL is a multi spectrum Cement player with double digit market share and a pioneer in super specialty cements like Oil well, Railway sleeper and Air strip.
DCBL has a stake of 45.4 % in OCL India Ltd., a major cement Player in the Eastern Region. Dalmia Cement now controls a cement capacity of 14.3 million tonnes & has a strong presence in Southern & Eastern Regions of the Country.
The Company has three integrated Sugar Mills in the state of Uttar Pradesh with total installed capacity of 22,500 tonnes of cane crush per day leading to sugar manufacturing of about 300,000 MT per annum, distillery capacity of 80 KL per day & cogeneration facility. It has been ranked amongst the Top 10 players in the sugar industry within a short span of operations in terms of income.
The company has charted out an ambitious growth plan, which is being executed by a professional management team under the guidance of experienced promoters of the Group.
The company produces around 160 MW of Power through thermal and renewable energy with an aim to increase the power generation from non-conventional methods.
Over the 7 decades, the company has earned the trust of the employees, distribution chain as well as all its stakeholders. The company is looked upon and respected for being a value-based organization. DCBL has been recognized and awarded Hewitt’s Best employer for the year 2009. It has been ranked among the Top Ten in the Manufacturing industry. DCBL is Head Quartered in New Delhi. It has employee strength of more than 3500 people.