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FOREWORD

I am delighted to present the 53rd Annual Report of CMA for the year 2013-14 which is in your hands

now. The Report is a comprehensive document and covers in detail, various aspects of performance of

the industry with particular reference to the year under report.

Year 2014 has been a very significant year for the cement industry inasmuch as it marks completion of

100 years of the journey of the Cement Industry through all its vicissitudes in the country to reach the

level of being the Second largest cement producer globally.

For the last two consecutive years, the overall economic growth registered a considerable reduction and

stood below 5%. This is also the lowest ever in the last decade after witnessing a growth of 6.5% in

2011-12 and 8.4% in 2010-11. This has created an environment of gloom among the industry as well as

the common man in the country.

Consequently, the cement industry, which has a direct co-relationship of 1:1.2 with the GDP, too

experienced demand recession. The growth of the cement industry during the year under review was

less than 3%, as per the official figures released by the Office of the Economic Adviser, DIPP. This has

sharply lowered the capacity utilization of the industry to 70% now from 94% in 2007-08. This saddled

the industry with an idle capacity of over 100 Mn.t. valuing a mammoth dead investment of over Rs.

70,000 crores at today’s cost.

Apart from slowdown in the economy and deceleration in the construction activities, the cement

production also suffered on account of dwindling availability of coal, power and Rail wagons, in

addition to high taxation. These aspects are now briefly touched upon in the following paras.

Coal is one of the major raw materials needed by the Industry both in the manufacturing of cement and

also for generating power. Over the last couple of years, the Cement Industry’s need has not been duly

addressed by the Govt. insofar as meeting its coal requirement is concerned due to diversion of Coal to

the Power Sector. From a fulfilment level of 69% of its coal requirement in 2003, the satisfaction level

for the Cement Industry has touched at 31% during the year under review. Since new linkages are not

being given to the existing units as well as to the new plants, cement industry perforce has to resort to

either open market purchase or imported coal at a much higher costs which also adds significantly to the

cost of production. Additional linkage to Cement Industry will bring down the cost of production.

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Coal sector reforms is one of the top items on the agenda of the New Govt. It has taken steps to

formulate clear and transparent policies on allocation of critical natural resources such as coal, minerals

and spectrum. It is to be hoped that while allocating the Coal resources in country, equitable

consideration is also accorded to non-power sectors, including Cement.

Another bottleneck pertains to Rail logistics. The cement industry continued to struggle hard in

transportation of cement, clinker, coal. fly ash, etc. by rail. The Rail share as a percentage of total

despatches of cement continued to remain at 34% of the total despatches of cement as opposed to 57% a

couple of years back. The major reasons for this decline are : (a) Inadequate and erratic supply of

wagons for cement, particularly during peak period. This badly affects the dispatch plans of the industry

(b) Acute crisis of wagons for movement of coal and pet-coke from Ports as also from SECL, which

have severely impacted the cement production (c) discriminatory freight hike – around 47% since April

2011(e) abnormally high penalty, demurrage and wharfage charges (f) significant increase in carrying

capacity of wagons from 2200 t to 4000 t in last seven years, without any corresponding increase in free

time for loading/ unloading. Cement industry expects Railways to take speedy actions on the above

concerns to firm up the Rail share for cement.

Yet another major constraint for the cement industry is Power. To supplement its energy needs, the

Cement Industry has been making concerted efforts over the last few years to enhance the usage of

Alternate Fuels in place of fossil fuel-coal and Waste Heat Recovery (WHR) through Co-generation

after making huge investments in process technology, but the success rate is not encouraging due to

certain financial and also policy -related constraints being encountered by the industry. The usage of

AFR needs to be encouraged and incentivized and the WHR technology may be granted ‘Renewable

Energy’ status for issuance of RE certificates.

The extant policy regarding supply of fly ash has been a matter of concern for the cement industry.

Power plants which were supplying fly ash to the cement industry free-of-cost as per the Govt.

notification have started charging considerably for fly ash from 2009. This has enhanced significantly

the production cost of Portland pozzolana cement. Cement industry has helped the power houses

considerably in saving their regular expenditure incurred on the disposal of the fly ash and also

investments having to be made on procuring land for its dumping. This has been made possible only

after setting up cement grinding units nearer the power houses entailing huge investments. Cement

industry deserves to be provided fly ash free-of-cost on the principle of ‘Polluter to Pay’ basis, which

has been adopted the world-over, in the overall interest of the Nation and also from protecting the

environment and health-hazard concerns.

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High taxation is yet another major concern of the industry. Cement industry is taxed at 60% of the ex-

factory price, which is more than even the luxury items. Similarly, VAT Charged on Steel, a

construction material like cement, is only 4% whereas it is 12.5% on Cement/clinker which varies up to

15% in some states. There is an urgent need for at least 25% reduction in overall taxation from the

current level for helping the Core Sector Industry to contribute its best to the economy.

I am happy to mention that CMA continued its efforts to promote techno- economically superior cement

concrete roads, through meetings and vigorous follow-ups with a large number of Government officials

and concerned authorities both in the Centre and the States.

Realising the various inherent advantages and importance of cement roads for the rapid growth of the

economy, the new NDA Govt., under the able and dynamic leadership of Prime Minister, Shri Narendra

Modi has announced preference for the Cement Concrete Roads as default option in case of National

Highway Projects. It has also taken a number of bold policy measures to revive the sagging economy

and also drawn a Roadmap for the development of Expressways, Dedicated Freight Corridors, Rural and

Urban Roads, Airports, Port Connectivity, Development of 100 Smart Cities, Housing for all by 2022,

etc.

The results of the Govt.’s initiatives have already started reflecting in the growth of the Cement Industry

to 7.9 % in the first three quarters of the current fiscal. To gain the momentum further in the growth rate,

Govt. must ensure fulfilment of its promises in respect of infrastructure development and also housing

projects by their timely clearances and execution, in addition to smooth and regular and flow of funds.

It is not out of place to mention that for the ambitious infrastructure programme of the Govt, there is

need to have in place short, medium and long-term projections of cement demand to enable the industry

to gear itself appropriately. However, after the June 2012 Order of the Competition Commission of

India, there has not been any detailed compilation of data, which was being effected by CMA on

regular basis earlier. There is, therefore, need to strengthen the process of effective data collection base

in the interest of both the Cement Industry and Govt.

Deptt. of Industrial Policy and Promotion, Ministry of Commerce and Industry, has been highly

supportive of our Industry for which, I am grateful to Secretary, Joint Secretary, Director and Under

Secretary. I am equally indebted to Secretary (Coal), Addl. Secretary (Coal) and Joint Secretary,

Ministry of Coal; Chairman, Railway Board, Member Traffic, Advisor (T), Executive Director Traffic

Transportation (S), Executive Director Traffic Transportation (R), Ministry of Railways;

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Secretary, MORTH, Chairman, NHAI, Secretary, Ministry of Environment and Forests; and Chairman,

Central Pollution Control Board, for their esteemed counsel, continued assistance and steady support. I

also thank the Senior Officers of various Ministries, Coal India, Singareni, CAPEXIL for their

cooperation.

I also wish to thank senior Members of the Managing Committee and various other CMA Committees

for their valuable advice whenever needed. But for their unstinted help and cooperation, it would not

have been easy for your Association to discharge its responsibilities as efficiently.

The officers and staff of CMA under the supervision and guidance of Secretary General, Shri N.A.

Viswanathan have turned in yet another year of dedicated and committed service in the interest of the

Association and its mission. I express my sincere appreciation and wish to record my gratitude to each

of them for their contribution through these trying times. I am sure, they will continue to provide such

service with zeal in future as well.

New Delhi (O.P. Puranmalka)

February 2015 President

53rd Annual Report

1

CEMENT MANUFACTURERS’ ASSOCIATION

53rd ANNUAL REPORT 2013-14 (Under Rule 49 – Rules & Regulations of CMA)

The Managing Committee is happy to

present its 53rd

Annual Report for the year

2013-14.

THE YEAR AT A GLANCE

Economy

After achieving unprecedented growth of

over 9% for three successive years

between 2005-06 and 2007-08 and

recovering swiftly from the global

financial crisis of 2008-09, the Indian

economy has been going through

challenging times. Gross Domestic

Product (GDP) growth drifted down

continuously from 8.4% in 2010-11 to

6.5% in 2011-12 and to lower than 5% for

two consecutive years, i.e. 2012-13 and

2013-14. GDP growth in the year 2013-14

was 4.7% as against 4.5% in the previous

year. The two successive years of sub-5%

growth was witnessed for the first time in

25 years. A combination of factors which

has contributed to such a low growth

include persistent uncertainty in the

global outlook, caused by the crisis in the

Euro area and general slowdown in the

global economy, compounded by

domestic structural constraints and

inflationary pressures and cyclical

slowdown in both global and domestic

economies.

The slow growth of the economy had

impacted various segments of the

Industry. As per the Central Statistics

Office (CSO) data, industrial growth

dropped to 0.4% in 2013-14 as against 1%

in 2012-13. The industrial revival may be

longer and needs stronger initiatives of all

stakeholders to emulate the peak growth

achieved in the recent past.

The last two years were particularly

disappointing for the manufacturing

sector, with growth averaging 0.2% per

annum. The growth in manufacturing

sector during 2013-14 was negative

(-0.7%) as compared to 1.1% in 2012-13.

The growth on the Agricultural Sector was

4.7% in 2013-14 as against 1.4% in

2012-13.

The Construction Sector grew by 1.6% in

2013-14 as against 1.1% in 2012-13.

The Cement Sector plays a vital role in the

economic growth of the country and its

journey towards inclusive growth. Cement

is an essential item to the Construction

Sector and to all infrastructural projects.

The Construction Sector alone contributes

to over 7% of the country’s GDP.

There is change of Govt. in the Centre, for

the first time after decades, which an

overwhelming majority has mandated.

With this change, the Cement Industry

hopes that the economy will revive, as the

New Govt. has already announced bold

steps and measures. Further, there has

been optimism in the economy after the

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10-point plan charted out by the Prime

Minister, which focuses on investments in

infrastructure, time-bound action and

improved coordination between the

Centre and States to ensure smooth

implementation of Government policies.

With these measures, the growth is surely

expected to pick up from the current year

onwards.

Cement Industry’s Performance

The Cement Industry witnessed slowdown

in cement demand in the year 2013-14

due to fall in construction activity,

prolonged monsoon, with floods and

cyclones that hit some parts of the

country, financial constraints and

increasing rate of interest, and virtual

drop in Government spending which had

led to slowdown in realty and

infrastructure sectors.

During the year 2013-14, cement

production, as per the Office of the

Economic Advisor, Department of

Industrial Policy & Promotion (DIPP), was

255.57 Mn.t. as against 248.23 Mn.t. in

the previous fiscal, registering a growth of

2.96% as against 7.7% in the previous year

2012-13. New capacities in the pipeline

materialized and lack of demand resulted

in further decline of capacity utilization of

the Cement Industry. Cement is one of

the core industries and an important

contributor in infrastructure growth.

Cement has a direct co-relation of 1:1.2

with the GDP. But, it has witnessed lower

growth than GDP (<3% as against GDP

growth of sub-5%).

Year Cement Prod.

(Mn.t.)

% Growth

2012-13 248.23 7.70

2013-14 255.57 2.96

In view of the downward revision of the

previous year’s production figures from

251.12 Mn.t. to 248.23 Mn.t. by the Govt.,

the percentage growth has gone down by

1.25 points from 8.95% to 7.7%. As per

the figures collected by CMA from

different sources, the growth in cement

production in previous year was 1.48%,

thus showing a high variance in the

growth rates in two sets of data.

Pan India cement production and capacity

are reflected in Annexure-I.

As reported last year, the flow of

statistical feedback to CMA practically

dried up consequent upon the Order

dated 20th

June 2012 of Competition

Commission of India (CCI) in Case No.

29/2010 “Builders Association of India Vs.

CMA & Ors.”. In the absence of inflow of

statistical data, CMA could not compile

and incorporate the performance of

Cement Industry in the Annual Report.

Inadequate and incorrect data on the

Cement Industry has been hampering

planning for Cement Industry and it will

continue to suffer unless a strong

database is created, particularly when

there is a wide mismatch of demand and

capacity in the Cement Industry. There is,

therefore, need to strengthen the system

of collection and compilation of the

database on Cement Industry since a

reliable and authentic database forms the

very basis of future planning of the

Cement Industry.

53rd Annual Report

3

Cement Industry’s Outlook

(2014-15)

As per the Economic Survey 2013-14, GDP

growth is expected to be 5.4% – 5.9% in

2014-15, and will increase gradually

thereafter.

The capacity utilization in the Cement

Industry was 94% in 2007-08 which has

been declining since then to around 70%

mainly due to mismatch between the

supply and cement demand. This has

created a situation of excess

idle capacity of over 100 Mn.t.,

a dead investment to the

magnitude of Rs.62,500 crores

in cost. The Cement Industry

is optimistic that the thrust

and importance given in the

Union Budget 2014-15 for the

development of National

Highways, Rural and Urban

Roads, Affordable Housing,

Port Connectivity,

Development of 100 Smart

Cities, etc. should help in

boosting the muted growth of

the Cement Industry.

The Govt. has finally realized

the value of concrete roads

over bitumen. Shri Nitin

Gadkari, Hon’ble Minister of

Road Transport, Highways and

Shipping, has unequivocally

expressed his preference for

cement concrete over bitumen

for road construction.

These measures are likely to generate

considerable cement demand, which is

much needed to bring back Indian

Cement Industry on the growth

trajectory.

MEETINGS OF THE MANAGING

COMMITTEE

Three meetings of the Managing

Committee of CMA were held during

2013–14 to review and deliberate on the

issues relating to the problems and

growth of the Cement Industry.

CMA Managing Committee Meeting in progress

CMA Managing Committee Meeting - 9th January 2014

Seated on Dais (L-R) S/Shri B.L. Jain, Past President, CMA; O.P. Puranmalka,

President, CMA; M.A.M.R. Muthiah, Past President, CMA;

N.A. Viswanathan, Secretary General, CMA; Dr. S. Chouksey, Vice President,

CMA and Mrs. Vinita Singhania, Past President, CMA

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CMA COMMITTEES

Shri O.P. Puranmalka, President, CMA has

re-constituted the following CMA

Committees for the year 2013-14 to

render assistance to the Management of

the Association to address various

emerging issues and problems, having

bearing on the Cement Industry.

� CMA Committee on Coal Matters.

� CMA Technical Committee.

� Energy Task Force.

� Environmental Task Force.

� CMA Finance/ Legal Matters Committee.

� CMA Committee on Railway Matters.

Names of the Chairmen/Co-chairmen of

the above Committees are indicated in

Annexure-II.

MEETING WITH HON’BLE MINISTER OF

STATE FOR COMMERCE AND INDUSTRY

Shri E.M. Sudersana Natchiappan, the

then Hon'ble Minister of State for

Commerce & Industry, called a meeting

with the representatives of the Cement

Industry on 4th

September, 2013 to

understand the major concerns of the

Cement Industry impacting its growth.

Shri N.A. Viswanathan, Secretary General,

CMA brought to the notice of Hon'ble

Minister the major concerns affecting the

Cement Industry, notably Current poor

utilization of cement capacity; Inadequate

supply of coal; Delay in obtaining

clearances from Ministry of Environment,

Forests & Climate Change (MoEF&CC),

Ministry of Mines, etc. thereby

discouraging fresh investments in this

core sector industry; High taxation

burden on this industry; Steep hike on the

railway freight, Inability of CMA to collect

and furnish data to the Ministry, in the

wake of CCI’s Order dated 20th

June 2012,

etc.

The Minister, who gave a patient hearing

to the representatives of the Cement

Industry was positive in the discussions.

CEMENT INDUSTRY’S PRE-BUDGET

MEMORANDUM – 2014-15

CMA, on behalf of the Member Cement

Companies submitted its Pre-Budget

Memorandum for the year 2014-15 on

2nd

June 2014, to the Hon’ble Finance

Minister, Shri Arun Jaitley, Government of

India. Conveying its hearty

congratulations to the Finance Minister

and the newly formed Government under

the dynamic leadership of Shri Narendra

Modi, Hon’ble Prime Minister, the

Cement Industry expressed confidence

that the new dispensation with its focus

on infrastructure development and job

creation would initiate bold and decisive

Policy Reforms to promote economic

growth, restore the much-needed

investor confidence, attract higher

53rd Annual Report

5

investments and generate employment

opportunities, especially in the

manufacturing sector.

The important facts and suggestions of

CMA’s Pre-Budget Memorandum are

highlighted hereunder:

Highly Taxed Industry: Cement is as

much an essential item for construction

activities as steel but both products are

treated differently when it comes to

taxation. Cement, a high volume low

value product, is highly taxed even more

than the luxury items at 60% of ex-factory

price. It was mentioned that average tax

on cement in the Asia Pacific Region is just

11.4% with the highest levy of 20% being

in Sri Lanka. CMA urged that the taxation

burden on the cement needs to be

lowered by at least 20% to 25% from the

present level of 60% ex-factory price in

the overall interest and growth of both

industry and economy, which are

currently passing through a very bad

phase.

Excise Duty Rationalization and

Simplification: Excise duty on Cement is

levied @12% + Rs.120 per MT. Duty rates

are one of the highest and next only to

luxury goods like cars. Other core

industries such as coal, steel attract duty

at around 5%. Further, the excise duty

structure for both cement as well as

cement clinker has become quite

complicated in the last few years.

CMA urged Government for

rationalization and reduction of the Excise

Duty from the current 12% to 6-8%

without addition of Specific Duty to bring

it at par with other core and

infrastructure industries and simplifying

the duty structure either as specific rate

per MT or on advalorem basis and

without relating to MRP etc.

Increase of abatement percentage: Excise

duty on Cement is levied on transaction

value. As per Section 4 of Central Excise

Act, Maximum Retail Price (MRP) is

considered as transaction value if printed

on bags. Since MRP consist of excise duty,

VAT, freight component, post sales

expenses and discount etc. MRP works

out very high as compared to transaction

value. Moreover, in the Cement Industry,

billing is done at a higher price and

subsequently, credit note is issued for all

types of discounts/incentives viz. Rate

difference, Cash discounts, and annual

incentives etc., which ultimately result in

reduction of net realization of the

company whereas excise duty is paid at a

higher value which is 70% of MRP. CMA,

therefore, suggested that existing

abatement of 30% may be increased to

55%, as was also recommended by

NCAER.

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Levy of Customs Duty on Cement

Imports: Import of cement into India is

freely allowed without payment of basic

customs duty whereas all the major

inputs for manufacturing cement such as

Limestone, Gypsum, Pet coke, Packing

Bags etc. attract customs duty. In this

situation duty-free imports cause further

undue hardship to the Cement Industry

apart from the security concerns inherent

in the import of cement from Pakistan.

CMA requested that to provide a level-

playing field, basic customs duty be levied

on cement imports into India.

Alternatively, Import duties on goods

required for manufacture of cement be

abolished.

Customs Duty on Pet Coke & Other

Inputs: Cement Industry has been subject

to perennial shortages of coal, the main

fuel. Approximately 35% of linked coal is

received by the member companies

against their total fuel requirement for

kiln under the Coal Linkage Scheme. This

adversely impacts the Cement Industry.

The Cement Industry has been resorting

to increased usage of Pet coke as fuel due

to reducing availability of coal. The

indigenous availability of Pet coke being

short, it is imported. Pet coke is

expensive and the situation is further

compounded and skewed by the fact that

the import duty on Pet coke is 2.5%,

whereas on final product ‘Cement’ there

is no Basic Customs Duty, leading to an

anomalous situation of “Import Duty on

inputs being higher than a finished

product”. CMA suggested that import

duty on pet coke, and other input

materials used in production of cement

be scrapped. This would remove the

aberration in the structure of duties

existing in cement imports vis-à-vis its

inputs.

Abolition of Import Duty on Tyre Chips:

The Cement Industry has been developing

usage of alternative energy sources like

tyre chips etc. However, tyre chips are

presently put under the “Negative list” of

imports, whereby the same cannot be

imported into India. In order to enhance

the usage of cut-tyres as fuel in the

manufacturing of cement, CMA suggested

that tyre chips be allowed to be imported

by removing it from the “Negative list”

and import duty on the same be reduced

to zero.

Treatment of Waste Heat Recovery as

Renewable Energy Source: Cement

Industry has been putting up Waste Heat

Recovery plants with substantial capital

investments so as to derive more energy

from the same energy resource. In a way,

this is akin to Green Energy. To help the

industry and incentivize its endeavour to

produce more such environment-friendly

53rd Annual Report

7

energy, CMA requested that such energy

generation be treated as Renewable

Energy Source.

Amend First Proviso to Rule 4A of the

Service Tax Rules 1994 to include Indian

Railways: Government had withdrawn

the Service Tax exemption on Railway

Freight w.e.f. 1.10.2012 and the Service

Tax is being charged by the Railways on

railway receipts. Since different Railway

Zones are issuing certificates in different

formats and in most cases without any

serial number, credit is being disallowed

by Central Excise officers to the cement

companies. This credit amount run into a

few hundred crores of Rupees. To

overcome this problem, CMA suggested

amending the First Proviso to Rule 4A of

the Service Tax Rules, which entitles

Cenvat Credit on bank

certificates/account statements without

serial numbers, to include certificates

issued by Indian Railways.

Your Managing Committee is happy to

report that this request of CMA has, since

been accepted by the Govt. vide their

Notification No.26/2014-Central Excise

(NT) dated 27th

August 2014.

Other Issues

The other issues, inter-alia, included

Classifying Cement as “Declared Goods;

Tax exemption to Certified Emission

Reduction (CER) credits under Clean

Development Mechanism; Exemption to

Cement Industry U/S 80-1A; Exemption to

Power Plants U/S 80-IA; Cenvat Credit on

Capital goods used outside factory for

handling of Raw Material in relation to

manufacture of final product; Re-

classifying Capital goods having useful life

of less than a year as Inputs; liability of

VAT as well as CST on inter-state

movement of material besides

suggestions regarding Direct Taxes; issues

relating to Tax Administration, policy

matters etc.

Union Budget 2014-15

Hon’ble Finance Minister, Shri Arun

Jaitley, presented the Union Budget

2014-15 in the Parliament on 10th

July

2014.

So far as Cement Industry is concerned,

while the Govt.’s announcements and

considerable funds allocation for the

various infrastructure development

projects in the country would revive the

cement demand, the imposition of Basic

Customs Duty (BCD) and Countervailing

Duty (CVD) on Coal and doubling the

Clean Energy Cess will further enhance

the financial burden of the Cement

Industry, which has already been passing

through a bad phase.

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MAJOR HIGHLIGHTS OF UNION BUDGET 2014-15

CONCERNING THE CEMENT INDUSTRY

• Anthracite coal, bituminous coal, coking coal, steam coal and other coal to attract 2.5% basic

customs duty and 2% CVD to eliminate all assessment disputes and transaction costs

associated with testing of various parameters of coal.

• Clean Energy Cess increased from Rs.50 per tonne to Rs.100 per tonne, to finance Clean

Environment initiatives.

• Concessional basic customs duty of 5% extended to machinery and equipment required for

setting up of a project for solar energy production.

• Investment allowance at the rate of 15% to a manufacturing company that invests more than

Rs.25 crore in any year in new plant and machinery. The benefit to be available for three

years i.e. for investments up to 31.03.2017.

• 10 year tax holiday extended to the undertakings which begin generation, distribution and

transmission of power by 31.03.2017.

• Export duty on bauxite increased from 10% to 20%.

• Customs and Central Excise Acts to be amended to expedite the process of disposal of

appeals.

• A sum of Rs.4000 crores for National Housing Bank from the priority sector lending shortfall

with a view to increase the flow of cheaper credit for affordable housing to the urban

poor/EWS/LIG segment is provided.

• An investment of Rs.37,880 crores in NHAI for construction of 8500 kms NH and State Roads

proposed which includes Rs.3000 crores for the North East.

• Rs.1000 crore provided for “Pradhan Mantri Krishi Sinchayee Yojana” for assured irrigation.

• Rs.14,389 crore provided for Pradhan Mantri Gram Sadak Yojana (PMGSY).

• Allocation for National Housing Bank increased to Rs.8000 crore to support Rural housing.

• A sum of Rs.7060 crore provided in the current fiscal for the project of developing

“100 Smart Cities”.

• Work on select Expressways in parallel to the development of the Industrial Corridors will be

initiated. For project preparation NHAI shall set aside a sum of Rs.500 crore.

• Perspective plan for the Bengaluru - Mumbai Economic Corridor (BMEC) and Vizag-Chennai

Corridor to be completed with the provision for 20 new Industrial Clusters.

• Master planning of 3 new Smart Cities in the Chennai-Bengaluru Industrial Corridor region,

viz., Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka to be

completed.

• Scheme for development of new Airports in Tier-I and Tier-II Cities to be launched.

• Slum development to be included in the list of Corporate Social Responsibility (CSR) activities

to encourage the private sector to contribute more.

• Rs.100 crore allocated for a new scheme “Ultra-Modern Super Critical Coal Based Thermal

Power Technology.”

53rd Annual Report

9

CMA AT PCA, WASHINGTON BOARD’S

MEET

Mr. Gregory M. Scott, President and Chief

Executive Officer of the Portland Cement

Association, Washington invited CMA’s

Vice President, Dr. S. Chouksey to speak

at PCA Spring Board Meeting on 29th

April, 2014 at The Willard, Washington,

DC.

Dr. Chouksey actively participated in their

Board’s meeting and also made a

Presentation on the ‘Challenges and

Opportunities’ being faced by the Indian

Cement Industry. He had intense

interaction with office bearers of PCA

regulating their ways of tackling the

problems being faced by their cement

plants particularly when confronted with

glut situation of cement a few decades

back.

Dr. Chouksey also responded to various

questions raised by their Board of

Directors on the Indian Cement Industry.

Dr. Chouksey’s presentation in the

meeting was received with appreciation

by the PCA Members.

INFRASTRUCTURE

All over the world, Cement is one of the

most important building materials for any

construction and is an essential

infrastructure input. The performance of

the Cement Industry itself depends

critically on regular and consistent supply

of Coal, Power and availability of Rail

transportation. The inputs from these

three sectors account for roughly 50% of

the cost of cement. Both the availability

and the cost of these inputs have a vital

bearing on the fortunes of the cement

players.

All these sectors are largely in Govt.

domain, and, historically Cement

companies have had virtually no control

on their cost and availability.

COAL

Coal is vital to the Cement Industry as it is

the primary fuel and accounts for 25-30%

of the total cost of cement production. It

takes about 170 kg of coal to produce one

tonne of clinker.

During the year 2013-14, CMA Committee

on Coal Matters held periodic meetings

and also interacted with various

Government Authorities on coal-related

issues. Also valued opinion and

suggestions were sought from the

Members on regular basis on specific

issues and problems as they arose before

firming up our Association’s views to take

up with the concerned authorities for

their resolution.

Revival of Standing Linkage Committee

(Long-Term) after 6 years

Ministry of Coal (MOC), after repeated

persuasion called Standing Linkage

Committee (Long Term) Meeting for

Power, Sponge Iron and Cement Sector to

review the status of existing Coal Linkage

and other related matters on 20th

December 2013, 21st

February 2014,

10

27th

June 2014, 11th

August 2014 and 3rd

December 2014 under the Chairmanship

of Additional Secretary, MOC. As per the

directives given in the first SLC (LT)

meeting, a Committee was constituted to

settle the long pending issue of signing of

Fuel Supply Agreements (FSAs) against

the linkages granted in the year 2007.

Background

For Cement Sector, 43 Letters of

Assurance (LoAs) were issued by the Coal

Companies. Out of these, 21 FSAs were

signed and Commitment Guarantee

forfeited in 2 LoAs cases. Of the balance

20 Cement Plants, 16 plants belong to our

Members, where milestones were verified

by the South Eastern Coalfields Limited

(SECL) and found deficient/not achieved

within LOA validity, Notices for

cancellation of LoAs and forfeiture of

Commitment Guarantee/ Additional

Commitment Guarantee have been issued

in the last financial year (2012-13).

The Review Committee constituted in

SECL recommended the following broad

principles for resolving the pending issues

and placed before the meeting of SLC (LT)

held on 27th

June 2014 under the

Chairmanship of Additional Secretary,

MOC, to take a view in the matter:

(a) Condonation of delay in respect of

achievement of milestones and / or

submission of documents/

clarifications in respect of milestones

already achieved and documents

already submitted till date.

(b) Grant of further 3 months’ time from

the date of issuance of letters to

respective LOA holders by SECL for

achievement of deficient milestones

and/or submission of fresh/

additional documents/ clarification as

being recommended.

(c) As coal is used for manufacture of

clinker, entitled coal quantities under

various LOAs will be worked out

considering total clinker capacity of

the plant (including pre-existing +

enhanced capacities). Based on this

capacity, the eligible quantity will be

at the rate of 17% of the clinker

capacity as normative quantity. Total

eligible quantity will then be 75% of

this normative quantity as per New

Coal Distribution Policy (NCDP). From

this total eligible quantity, the

quantity being already drawn under

FSA from SECL, if any, will be

subtracted to arrive at the balance

eligible quantity for supply under

fresh FSAs against these LOAs,

subject to the ceiling of approved

LOA quantities.

In case of variation in clinker

capacities as per different documents

submitted against various milestones

of an LOA, the lowest capacity will be

considered for computation of

entitled coal quantity. These

principles will apply uniformly to all

LOA holders, to which they have

agreed.

53rd Annual Report

11

(d) In cases, where the clinker capacity is

mentioned in Tonnes Per Day (TPD),

the annual capacity will be uniformly

calculated considering 330 working

days in a year as per industry norms

as indicated by DIPP.

(e) Manufacturing of clinker has distinct

pollution control norms. Most of the

LOA holders have furnished

Environment Clearance for clinker.

Environment Clearance for clinker

will be mandatory in all cases.

However, LOA holders may furnish

either Consent to Establish or

Consent to Operate mentioning

clinker capacity, which will be

acceptable for milestone purpose.

The papers/documents of each of the 20

cement plants were examined by SECL in

light of these broad principles and

decision on each individual case taken by

SECL. Relaxation or extension of time till

31.10.2014 for meeting procedural

formalities and the achievement of

milestones, wherever required, was given.

With this development, most of the FSAs

are already signed and remaining 3 FSAs

are expected to be signed after

submission of MoEF&CC document for

enhanced clinker capacity.

Supply of coal to Cement Plants with

tapering linkages

MOC notified the Guidelines/ Policy

relating to issuance of LOA/Allocation of

Coal on “tapering basis” to various

consumers of Power, Cement & Sponge

Iron, under reference No. 23011/39/2008-

CPD dated 26th

February 2010. These

Guidelines were applied prospectively and

in accordance with the terms and

conditions mentioned in these Guidelines.

Cement Projects with Captive Mines have

been given Tapering Linkages with the

stipulation that on the coal supply after

the normative date of production,

additional 40% of the base price shall be

payable as “Add-on-Price” for all coals of

Gross Calorific Value (GCV) of 5800

Kcal/Kg and below as against 20% for the

Power Plants which was revised with

effect from 16.12.2013. The coal supplies

will be for a maximum period of three

years in a tapered manner corresponding

to 75% in the first year, 50% in the second

year and 25% in the third year from the

date of targeted normative production.

Cement Companies which have been

allocated Captive Coal Blocks could not

start coal production due to a variety of

reasons beyond their control, such as,

delays/non-clearance in getting MoEF&CC

clearance; delays in demarcation of the

boundaries by the Central Mine Planning

and Design Institute Limited (CMPDIL);

enquiry initiated against the other

allocatee of the same Coal block, delay in

granting land and other clearances etc. by

State Govts.

In case of Thermal Power Plants with

tapering linkages coal supply were

extended by 3 years or till such time the

12

production actually starts from the coal

blocks, whichever was earlier, after the

normative date of production and

directions to that effect were given to the

Chairman & Managing Director, Coal India

Limited (CIL) by MOC on 16th

January

2014.

In order to maintain parity with the relief

granted to the Power Plants for supply of

coal with tapering linkages, CMA took up

the issue with Secretary (DIPP), Ministry

of Commerce & Industry, Secretary, MOC

& Cabinet Secretary for extending the

“Normative date of commencement of

Production” to the Cement Projects also

for continued coal supplies on long term

linkages. CMA’s suggestions in this regard

have been accepted in the Fifth Meeting

of the “Inter-Ministerial Committee” held

on 11th

June 2014. This will help in

ensuring supply of coal to Sponge Iron

Plants and Cement Plants, which have not

been granted any fresh coal linkages since

2007. The CPPs have been excluded from

this arrangement.

Consequent on the de-allocation of the

coal blocks by the Hon’ble Supreme Court

of India in September 2014, CMA has

urged the Government to scrap the

Tapering Coal Linkage Policy 2010 and

requested to release the difference

between the normal and tapered quantity

of coal to the affected member units from

retrospective effect.

Based on the presentation by the CMA

and other Stakeholders, the Standing

Linkage Committee (Long-Term) in its

meeting held on 3rd

December 2014

decided that coal be supplied by road to

the End-use-plants in the following order

in case of de-allocated/cancelled coal

blocks:

(a) End-use-plants which were already

having linkages/LOAs but whose

existing linkages were converted to

tapering linkage consequent upon

allocation of coal block.

(b) End-use-plants which were granted

tapering linkages in view of coal

blocks having been allocated to them.

Third Party Joint Sampling Facility for

Cement Industry

The mechanism of Third Party Sampling of

coal has been put in place with effect

from 1st

October 2013 for the power

utilities and for the other consumers

having Annual Contracted Quantity (ACQ)

more than 4 lakh tonnes. CIL has even

modified its FSAs to allow Third Party to

collect samples at the delivery point for

determining the quality of coal. The

samples of coal will be collected in the

presence of representatives of the seller

and the purchaser.

Member Cement Companies have been

consistently expressing serious concern

about the poor quality of coal being

supplied by the coal companies (CIL as

53rd Annual Report

13

also by Singareni Colliery Co. Ltd.) and the

extensive variation in the declared GCV

and the actual GCV measured at the

cement plant as also the sub-standard

quality of coal.

CMA has, therefore, requested the

authorities to extend the proposed facility

of engagement of independent third Party

Sampling Agency for sampling and

analysis of coal for cement sector

consumers as well, subject to their option

for such facility, without any embargo on

the minimum quantity of 4 lakh tonnes.

Coal Blocks for Cement Industry through

auction by competitive bidding for

specified end uses

CMA and the Cement Industry had taken

up with the MOC, DIPP, Ministry of

Commerce and Industry, regularly, for

specifically setting aside Coal blocks for

allocation to Cement Industry. MOC vide

O.M. No. 13016/26/2004-CA-I (Pt.)-CA- III

dated 29th

January 2014, notified

Allocation of Area containing coal through

auction by competitive bidding (Rule 3)

under “Auction by Competitive Bidding of

Coal Mines Rules, 2012”, wherein,

information about capacity of the End-

Use plant along with Capital Investment

required was sought in a format from the

Cement Companies through DIPP,

Ministry of Commerce & Industry.

MOC for the first time set three Coal

Blocks for auction by competitive bidding

for specified end uses, two coal blocks in

Jharkhand, Jhirki & Jhirki (West),

Tokisud-II and one in West Bengal, Andal

Babuisol, which were to be auctioned to

the Steel, Sponge iron and Cement

companies. These three coal blocks have

reserves (including proved, indicated and

inferred) of about 499.4 Mn.t.

Tokisud-II coal block, earmarked for

Cement sector and situated in the South

Karanpura coalfield of Jharkhand has

127.692 Mn.t. of net proved geological

coal reserves. However, the assessed

Mineable/Extractable reserves are only

35.25 Mn.t. as per the information

obtained from CMPDIL. The average coal

quality range indicated is 4901-5200, GCV

per K.cal/per kilogram or Useful Heat

Value (UHV) between 3360-4200 UHV

K.Cal/per kg. or equivalent to erstwhile

“E” grade coal.

The Request for Proposal Documents

(RFP) for the coal block was available with

effect from 26.2.2014 upon payment of

Rs.2,00,000/- and bidding closed on 25th

June 2014.

However, the first-ever auction of captive

coal mining assets turned out to be a

failure. The Coal Ministry did not receive

any bid for two of the three mines

auctioned to steel and cement companies

though over 40 firms purchased bid

documents in March, 2014. Only two

sponge iron companies had submitted

bids for the small Andal Babuisol asset.

The underground reserve can produce

about 0.70 Mn.t. of coal annually for 25

years.

14

All the blocks have land-related issues.

The bidders were expected to make an

up-front payment of Rs. 35-45 crore, over

and above the production sharing

contract. MOC’s decision that the blocks

should be auctioned only after securing

the necessary environmental and land-

related clearances may see the auction

process put on hold as the process of

granting clearances take months together

and sometimes even years.

The Government is now overhauling coal

blocks bidding policy to attract

investments as the pilot set of auctioned

mines could not find any takers.

De-allocation of Captive Coal Blocks

The Hon’ble Supreme Court of India, in its

Judgement dated 25.08.2014 and Order

dated 24.09.2014 passed in Writ Petition

(CRL No. 120 of 2012) declared allocation

of 218 Coal Blocks as arbitrary & illegal.

The Hon’ble Supreme Court quashed the

allocation of 204 Coal Blocks

barring 14 allocated to Ultra

Mega Power Projects and blocks

in operation of NTPC and SAIL.

Out of these Coal Blocks,

seventeen Coal Blocks relate to

the Cement Industry, and 12 to

our Member Cement

Companies wherein huge

investments have been made by

the Industry in the End-Use

plants and the Coal Blocks.

CMA had taken up strongly with the

Government for the resolution of the

consequences arising due to de-allocation

of these Coal Blocks.

The Government has now decided to sell

101 coal blocks by the end of March 31,

2015, while the remaining 103 blocks will

be auctioned in the Fiscal Year 2015-16.

Of the 101 blocks to be auctioned before

Fiscal Year 2014-15, 65 blocks would be

auctioned while 36 blocks would be

directly allotted to the State-owned

companies - 63 to power sector and rest

to non-power sectors.

Fuel Consumption and Coal Receipt against

FSA/Linkage

Coal receipt against FSA/Linkage by

Member Units of CMA was 9.22 Mn.t. in

2013-14 as against 10.38 Mn.t. in

2012-13. Month-wise coal receipts for the

years 2009-10 to 2013-14 are given in

Annexure-III.

53rd Annual Report

15

The total fuel procurement by Member

units was 29.93 Mn.t. in 2013-14 as

against 29.82 Mn.t. in 2012-13. While

the total fuel consumption by Member

units, during the year 2013-14 was 28.85

Mn.t. as against 27.37 Mn.t in 2012-13.

E-Auction/Open Market Procurement of

Coal

Coal distribution through E-Auction was

re-introduced in the New Coal

Distribution Policy in 2007 mainly to

provide access to companies that do not

have regular sources of supply. Most of

the coal through E-Auction is transported

through road network. In a recent order

by MOC, to boost supplies to the Power

Sector and to sign FSAs with power

companies and not to increase supplies to

other sectors, it has directed curtailing

E-Auction sales by 50% to

accommodate power producers.

CMA has requested the Government to

revisit its directive of reducing the

quantity of coal offered through E-Auction

route by 50% and to regulate

registration/participation of the Traders,

Power Utilities and Independent Power

Producers. Pending decision, Power

Utilities, IPPs and Coal Traders may be

restrained from participating in the Spot

and forward E-Auction.

The Cement Industry, because of shortage

of coal, is required to buy considerable

quantities of coal from Open Market/E-

Auction. A total of 3.92 Mn.t. of E-

Auction/Open Market Coal was purchased

during 2013-14 as against 3.93 Mn.t.

during 2012-13.

The percentage increase of

E-Auction bidding price over notified coal

price from CIL sources with respect to the

Spot E-Auction was 38% and Forward

E-Auction was 40% during the year under

review, as against 50% and 26%

respectively during the financial year

2012-13. The decreasing trend in the Spot

E-Auction price is due to increase in the

Notified Price and decline in the imported

coal price. Although there is increase in

the Forward E-Auction price but its

quantity is only 6% of the total quantity

allocated through E-Auction.

Details of year-wise procurement and

consumption of fuel, including Captive

Power Plants, are given in Annexure-IV.

It will be seen therefrom that during the

year 2013-14, linked coal share dropped

to 31% of the total receipt as against 69%

in 2002-03.

16

Coal Imports

The coal imported by Member

units was 9.08 Mn.t. during

2013-14 as against 9.27 Mn.t.

during 2012-13.

Pet Coke

During the year under review, the

Cement Industry consumed 5.96

Mn.t. of pet coke as against 5.18

Mn.t. during 2012-13.

Lignite

A quantity of about 1.11 Mn.t. of

Lignite was used in the financial year

2013-14 as fuel mainly in the cement

plants of Southern and Western Regions

as against 0.71 Mn.t. during 2012-13.

Other Fuels

Other alternative fuels like

husk/municipal wastes/biomass, etc.

consumed by CMA Member Companies

was 0.64 Mn.t. in 2013-14 as against 0.35

Mn.t. in 2012-13.

CMA continues its efforts to reach out of

the authorities to enhance Alternate Fuels

and Raw Materials (AFRs).

In response to DIPP reference in June

2013, seeking CMA’s suggestions for

facilitating enhanced usage of Alternate

Fuels, the Association suggested broad

measures needed to be taken for

achieving this and also indicated the need

for involvement and action on the part of

specific authorities/departments of the

Govt. The suggestions included incentives

for cement plants using higher percentage

of AFR, capital subsidy for investments in

pre-processing and co-processing of

waste, fine tuning of the classification of

hazardous/non-hazardous waste, granting

approval for usage of same alternate fuels

in different plants, one time NOC for

inter-state boundary movement of

hazardous waste, etc., besides creation of

a separate R&D Cell for classification and

utilization of waste.

Subsequently, in March 2014, DIPP sought

suggestions on Action Plan to be

implemented by the DIPP on usage of

Alternate Fuels and other related issues

for overall improvement in cement sector.

CMA in its response dated 2nd

April 2014

highlighted the uniqueness of cement

manufacturing process requiring high

temperature, suggested that it offers

perhaps the best way to consume both

hazardous as well as non-hazardous

53rd Annual Report

17

wastes as Alternate Fuels without any

negative impact on environment, which

while providing an effective solution to

the menace of ever-increasing waste

generation also conserves the depleting

fossil fuel, namely coal. It was stressed

that the Cement Industry needs to be

given necessary preference in

the utilization of all such

Alternate Fuels.

Further, in order to feed the

various types of Alternate Fuels,

the plants have to make

necessary modifications/

replacements in the AFR

handling equipments/ feeding

systems which require large

investments as well.

To facilitate and encourage AFR

usage, extending capital subsidy for

creation of pre-processing and feeding

systems similar to the one being extended

to incinerators was recommended.

Additionally, coverage of expenditure on

collection, process and creation of

facilities for conversion of Municipal Solid

Waste (MSW) to Refuse-derived Fuel

(RDF) under CSR spending under Section

135 of the Companies Act, would lead to

enhanced use of RDF in Cement Industry,

which can reduce the nuisance of land fill

and contamination cost by disposal of

MSW by Municipal Corporation.

FWs for Coal Loading by Rail

During the year 2013-14, Cement Industry

received on an average 965 Four

Wheelers (FWs) per day for loading of

Coal, as against 1050 FWs per day in

2012-13 i.e. a decrease of 85 FWs per day

over last year.

Study Group – Rates of Royalty on Coal and

Lignite

Under Section 9(3) of the Mines and

Mineral (Development and Regulation)

Act, 1957, the Central Government is

empowered to amend the Second

Schedule to the Act so as to enhance or

reduce; once in three years, the rates of

royalty on minerals specified in Schedule-I

of the said Act including coal. In July 2014,

the MOC constituted a Study Group in

order to consider the question of revision

of rates of royalty on coal and lignite in all

its aspects, under the Chairmanship of

Additional Secretary, MOC. Members of

18

the Group include Joint Secretary, MOC; a

Representative each of Ministry of Mines;

Ministry of Power; CMD, CMPDIL; CIL;

Federation of Indian Chambers of

Commerce and Industry (FICCI);

Federation of Indian Mineral Industries

(FIMI) with Director, MOC as

its Convener.

TRANSPORTATION –

RAILWAYS

Cement Industry continued to

struggle hard, during the year

under review, in the

transportation of Cement,

Clinker, Coal, Fly Ash, etc., by

Rail due to a raft of reasons

pertaining to (a) Commercial (b) Policy

and (c) Technical. Despite the fact that

Rail transport is 4-5 times more energy

efficient than road transport, the end cost

of Rail Transportation continues to be

much higher than the Road Transport

due to regular direct or indirect hikes in

the freight rates and inadequate

availability of rakes coupled with

infrastructure constraints at the

terminals.

Cement and Clinker Transportation by Rail

and Revenue Generation

As per the statistics hosted by Railways on

their website, loading of cement and

clinker by Rail for 2013-14 was 109.81

Mn.t. as against 105.85 Mn.t. previous

year, a growth of 3.74% over last year. A

Bar Chart below gives the total loading of

cement and clinker by Rail. Railway zone-

wise details of Cement/Clinker loading are

given in the Annexure-V.

Similarly, the total earnings generated by

the Railways from the Cement Industry

went up by 5.25% over last year, from

Rs.8233.40 crores in 2012-13 to

Rs.8665.32 crores in 2013-14.

Enhancement in Transportation Cost

In the last 2/3 years, Railway Board had

taken a number of Policy measures that

have resulted in enhancement of the

overall transportation cost of cement by

Rail anything between 36% and 38%

through its various administrative policy

dispensations. From June 2014, Railways

have steeply increased freight rates by

6.5% and Wagon Registration Fee from

Rs. 15000 to Rs. 50,000 per rake. CMA

has been submitting to the Railway Board

the need for and urgency to lower the

53rd Annual Report

19

overall transportation cost of cement,

clinker, etc. by Rail, if Rail co-efficient for

cement has to go up.

Meeting with Hon’ble Railway Minister

A small delegation of CMA under the

leadership of its President Shri O.P.

Puranmalka, met Shri D.V. Sadananda

Gowda on 5th

June 2014 and, inter alia,

requested him to withdraw the Railway

Board circular of 16.5.2014 steeply

enhancing the demurrage and wharfage

charges six times of the base rate from 1st

June 2014.

With the efforts of President, CMA and

the Committee on Railway Matters,

Railway Board has reviewed the matter

and decided that the guidelines contained

in their Circular under reference may be

withheld till further orders and the

guidelines prevailing prior to 1st

June 2014

will be followed.

CMA Committee on Railway Matters

During the year under review, CMA

Committee on Railway Matters, under the

Chairmanship of Shri Rajeev Mehta,

Executive President (Logistics), UltraTech

Cement Ltd., had Meetings with

Chairman, Member (Traffic), Member

(Commercial), Advisors, Executive

Directors and other senior officers of the

Railway Board to keep them abreast with

Cement Industry’s Rail-related problems

with suggestions for their amicable

solutions.

Rail Cement Co-ordination Group

Two meetings of the Rail Cement

Co-ordination Group (RCCG) were held

under the Chairmanship of Shri Manoj

Akhori, Executive Director – TT (F),

Railway Board. The meetings were graced

by the Member Traffic and other senior

officials with their presence. During the

meeting, Railways’ response was positive

on the following issues raised by the

Industry representatives:

� Railway Board agreed ‘in principle’ to

mechanize five goods sheds in the

country handling cement, to begin

with. They requested CMA to send

them a list of preference indicating five

Goods Sheds where Cement Industry

wants Railways to create infrastructure

facilities for unloading.

� Railways would consider and examine

Industry’s request for 25 to 30% freight

rebate for short-lead movement of

cement say upto 450 kms. to

encourage shifting of present short

lead cement traffic from Road to Rail

which is about 40 to 50% of the total

despatches.

� Before making any announcement of

any Scheme whose implementation

will impact the Cement Industry,

Railways would first invite the inputs

from the Cement Industry and

thereafter would also discuss with

them the Draft Policy concerning

cement.

20

Representations/Presentations

In order to encourage and enhance Rail

share for movement of cement, clinker

and input materials by Rail, CMA, on

behalf of the Cement Industry, made the

following submissions to the Railways,

from time to time, in its various meetings,

representations and presentations:

• CMA requested the Railway Board to

withdraw their Rates Circular No. 20 of

20th June 2014 hiking the freight rates

by 6.5% as Cement Industry, which has

already been reeling under

tremendous price pressure due to

sluggish demand of Cement, cannot

absorb this increase.

• All important terminals handling

cement in the country may kindly be

mechanized with world-class facilities

for improving better turnaround of

wagons.

• Encourage private investments in

Lease Wagon Investment Scheme

(LWIS) and other Schemes of Railways

by providing freight rebate of at least

22% and that too for the entire life of

the wagons i.e. 35 - 40 years.

• Modified Wagon Investment Scheme

(MWIS) Policy be put in place after

discussion with actual users.

• Before announcing any Policy, inputs

from CMA/ Cement Industry may

kindly be obtained.

• Rakes requirement of the Industry may

kindly be met in full throughout the

year, particularly during peak

construction period.

• The problem of the Industry in

claiming Cenvat Credit on Service Tax

on Transportation by Rail be

addressed.

• Railway Board should withdraw their

Rationalization Scheme General Order

No. 01/2012 – Amendment No. 6 of

11.02.2014, whereby transportation

cost for Cement Plants falling under

Jabalpur Division of the West Central

Railway (WCR) has gone up between

18.7% and 77.5% depending upon the

destination the material is to be

transported.

• Railways may take speedy action on all

the proposed Private Sidings which

could not be set up in the last few

years for want of various clearances

from the Railways.

• Railways should consider scrapping its

Dynamic Pricing Freight Policy for

Cement Industry as various Policy

Decisions under this Scheme have

significantly enhanced the overall

transportation cost of Cement by Rail.

This has led to a steady shift to Road

transportation.

53rd Annual Report

21

Bulk Movement of Cement

CMA continued to request to the Railways

to suitably bring down the Rail

Classification Slab for bulk cement and

also to provide attractive freight discount

to all those who purchase Special Purpose

Wagons for bulk movement of cement

and fly ash, for the entire life of wagons,

which is 35-40 years.

Railway Budget 2014-15

Shri D.V. Sadananda Gowda, Hon’ble

Railways Minister has presented the

Railway Budget for 2014-15 on 8th

July

2014.

RAIL BUDGET 2014-15 – MAJOR HIGHLIGHTS CONCERNING CEMENT INDUSTRY

� Target for freight loading has been firmed up at 1101 MT for 2014-15, which is 51 MT

more than 2013-14.

� Setting up of Private Freight Terminal on PPP model to develop network of freight

terminals.

� Setting up of Logistic Parks to modernize logistics operations; Top priority to

mechanization of loading and unloading.

� Suitable pricing mechanism to garner additional revenue from empty flow - Pilot

project for automatic rebate to customers offering traffic through computerized

Freight Operations Information System (FOIS).

� Launching online registration of demands for wagons in next two months for

facilitating online payment of Wagon registration fee.

� Initiating process for ERR (Electronic Railway Receipt) during the year.

� Close monitoring of Dedicated Freight Corridor Project, Implementation of Eastern

and Western DFCs; Target of nearly 1000 kms of civil construction contracts.

POWER

Uninterrupted power supply is a must for

running the Cement Plants that require

around 20 MW of power for a million

tonne Cement plant. Power constitutes a

major cost component in cement

manufacturing process. With the

projected additional capacities for cement

and clinker, Energy security is going to

become a key concern for the industry.

Proactive use of Waste Heat Recovery

(WHR) and Alternate Fuels like Municipal

Wastes, Cut Tyres, Paint Sludge, Biomass,

will be important alternatives to coal in

the years to come.

It is gratifying that almost all the cement

plants have installed captive power

generation capacities to the extent of 60%

22

of their requirement, and even 100% in

some cases. Captive power generation

capacity of approx. 118 MW in 1982-83

has risen to more than 4200 MW by

2012-13. CMA is, however, hamstrung by

lack of up-to-date information. The 4200

MW captive power figure is inclusive of

the power capacity set up through Wind

Farms and WHR power plants.

WHR systems are technologically proven

and stable alternatives. However, these

call for a high capital investment. Besides,

adequate policy and financial incentives

need to be provided by the Govt. With

the right set of incentives, the Cement

Industry has the potential to abate up to

nine MTPA of CO2 emissions by 2025.

The Industry has placed significant focus

on improving energy efficiency in plant

operation over the years and it is an

ongoing process. By the end of XIIth Plan

(Year 2016-17), the Cement Industry’s

average electrical energy consumption is

expected to come down to 78 kWh/t

cement from 80 kWh/t cement and the

average thermal energy consumption to

about 710 kcal/kg clinker from 725

kcal/kg clinker. The best electrical energy

consumption presently achieved by the

state-of-the-art cement plants is nearly 66

kWh/t cement and thermal energy of

about 667 kcal/kg clinker, which are

comparable to the best reported figures

of 65 kWh/t cement and 660 kcal/kg

clinker in a developed country like Japan.

The Industry’s proactive participation in

the ongoing implementation of the PAT

(Perform, Achieve and Trade) Scheme of

Bureau of Energy Efficiency (BEE) (under

the National Mission for Enhanced Energy

Efficiency- one of the Eight Missions of

the Prime Minister’s National Action Plan

on Climate Change) is expected to drive

further reduction in energy consumption

in the cement plants.

The other issues, which merit due

attention of the authorities towards the

industry’s efforts for further energy

efficiency improvements, include the

bottlenecks in (i) increasing the Usage of

Alternate Sources of Energy, and (ii)

exploiting full potential of Cogeneration

of Power through WHR Systems. Usage of

AFR, WHR based cogeneration of power,

etc. in the Cement Industry will go a long

way in reduction of the Carbon Footprint

of the industry.

EXPORT

Despite the fact that the quality and

technology of Indian cement is world-

class and the Industry is having an excess

cement capacity of about 100 Mn.t.,

exports of cement and clinker have been

waning continuously mainly because of

high level of State levies and royalties for

which there is no Cenvat Credit,

infrastructure constraints; high

53rd Annual Report

23

transportation cost from plants to border

points/ports; in addition to Government’s

encouragement for import of cement with

no custom duty, thus distorting a level

playing field between domestic and

imported cement.

With a view to making Indian

Cement/Clinker competitive in the Global

Market, CMA has been making following

submissions to the Govt., from time to

time:

� Royalty paid on limestone should be

neutralized for export of cement. This

is in sync with the approach that

domestic taxes are not exported.

� Duty Drawback should be enhanced to

3% (i.e. erstwhile DEPB rates) to

sustain exports.

� There is no Custom Duty for import of

Cement into the country. This anomaly

needs to be removed to offer a level

playing field to domestic production

vis-à-vis imports.

� For the purpose of exports,

classification of cement and clinker for

Rail freight be reduced from 150 as of

today to 140.

� Investments made for decongesting

the National ports by developing

private jetties/ports for export of

cement and clinker be allowed a higher

rate of depreciation.

PROMOTIONAL ACTIVITY: ADVOCACY

AND AWARENESS GENERATION

Promotion of Cement Concrete Roads and

White-Topping

Keeping the interest of the nation in

mind, CMA and its constituent member

companies have undertaken extensive

and wide ranging programme to promote

the Construction of Techno-economically

Superior Cement Concrete Roads and

White-Topping (Concrete Overlay over

Bituminous surface) in Urban and Rural

India as also Highways throughout the

country.

As a part of advocacy, propagation and

documentation, CMA has brought out

several publications both informative and

technical as well, organized National

Seminars/Workshops, held interactive

meetings, made representations/

presentations to convince the decision

makers of the superiority of Concrete

Roads with the help and support from

some reputed organizations like Central

Road Research Institute (CRRI).

The sustained efforts of CMA and

member companies have resulted in a

gradual change in the mindset of

Engineering Fraternity & officers in

Government and semi-Government

bodies in favour of Cement Concrete

Roads/ White-Topping.

24

Workshops/Seminars

CMA and UltraTech Cement Ltd. jointly

organized “Workshop on Cement

Concrete Roads and White-Topping” in

June, 2013 at Dehradun. More than 100

delegates comprising Engineers from

Public Works Department (PWD), Rural

Engineering Services (RES), Irrigation

Department of Uttarakhand, Mussoorie

Dehradun Development Authority

(MDDA), Nagar Nigam, Dehradun,

Consultants, Contractors, Professors from

Engineering Colleges and representatives

from Cement Industry actively

participated in the Workshop. Three

presentations were made by the experts

on Design, Construction, Maintenance

and Quality control aspects of Cement

Concrete Roads and White-Topping.

These presentations were very well

received and evinced keen interest

amongst the participants and the

discussions that followed showed the

openness of mind of the Engineers and

Officers of the Government and

Authorities towards adoption of new

technologies.

During 2013-14, CMA participated/

Sponsored in the workshops/ seminars

related to Cement Concrete Roads which

were organized by the organizations such

as PHD Chamber, UBM India Pvt. Ltd. and

Indian Concrete Institute. A detailed list of

Workshops & Seminars on Cement

Concrete Roads CMA participated in/

Sponsored is at Annexure-VI.

Presentations/Meetings/Communication:

CMA officials along with Cement

companies held Meetings and organized

Presentations with Central and State

Government Officials for promotion of

Cement Concrete Road/ White-Topping. A

list of the Presentations and Meetings

organized is at Annexure-VII.

The Presentations made by experts in

these meetings mainly emphasized on the

superiority and cost effectiveness of

Cement Concrete Roads especially for the

concerned areas of the Government

Departments.

CMA addressed letters to the Ministries

and Senior Officers of Central and State

Government Departments highlighting

the advantages of building Road network

in Cement Concrete. The authorities were

also requested to take policy decision to

construct Urban & Rural Roads, State

Highways and National Highways in

Cement Concrete. Further, detailed

reports on how Cement Concrete Roads

are superior and most economical to the

Bituminous ones apart from having host

of other advantages have been provided

to the news agencies on their request.

This news has also published in the

National Newspapers.

Construction of Roads in Coalfield Areas:

CMA learnt that Mahanadi Coalfields Ltd.

(MCL) has decided to construct Cement

Concrete Roads costing approximately

53rd Annual Report

25

Rs.1000 crore for transporting coal by

heavy load carriers from their coalfield

areas to stockyard/siding. This decision

was taken by the subsidiary company of

CIL because the existing bituminous road

could not take this loading resulting in

frequent damages causing disruption in

the coal evacuating traffic.

CMA, therefore, addressed letters to

other coal subsidiary companies of CIL

apprising them that Cement Concrete

Roads have a definite edge over Bitumen

ones, especially for heavy load carriers.

Today Cement Concrete Roads are

cheaper than Bituminous ones, even at

the initial stage of construction in most of

the cases, apart from having durable and

maintenance free life of 30-40 years. On a

life-cycle-cost basis, in any case, Cement

Concrete Roads are Cheaper and better

alternative. CMA requested subsidiary

coal companies to consider for Cement

Concrete Roads in their respective

Coalfield areas as well.

In November 2013, CMA requested the

Additional Secretary, MOC to take policy

decision for construction of Cement

Concrete Roads instead of Bituminous

ones in the subsidiary coal companies of

CIL for all the upcoming projects. To take

the matter forward CMA organized

meetings and presentations at CMPDIL,

Central Coalfields Limited (CCL), Ranchi

and Western Coalfield Limited (WCL),

Nagpur on 23rd

January 2014 and 20th

March 2014 respectively.

CMA Publications: CMA has been

periodically bringing out several

publications both informative and

technical as a part of advocacy,

propagation and documentation of

Cement Concrete Roads. CMA brought

out a Publication “Cement Concrete

Roads for Rural India - A Must” in

2013-14.

The main objective of the Publication has

been to spread and deepen awareness to

the authorities and decision makers,

particularly at the district and large towns

about the construction of Cement

Concrete Roads and White-Topping under

various schemes of Central and State

Government in Rural India and the

practices followed in some States for

guidance. The Publication was released by

Dr. E.M. Sudarsana Natchiappan, the then

Hon’ble Minister of State for Commerce

and Industry, Govt. of India on the

occasion of CMA’s 52nd

Annual Session

held in January 2014 and was widely

circulated.

Tender Notices for Cement Concrete

Roads : CMA has regularly been receiving

the details of tender notices for

construction of Cement Concrete Roads

invited by the construction agencies all

over the country. CMA requests the Road

Construction Agencies to take proper

quality control measures during the

construction of Cement Concrete Roads in

26

their areas. A copy of the Association’s

publication Dos and Don’ts is being sent

to them for information and guidance.

Nodal officers of concerned areas are also

being requested to interact with the

construction agencies and provide them

technical assistance.

Welcome Step by the New Government at

the Centre

It is heartening to record that after

assuming charge, the Hon'ble Minister for

Road Transport, Highways and Shipping,

Shri Nitin Gadkari, has been taking pro-

active initiatives in advising the engineers

for going ahead with construction of

Highways in Cement Concrete.

Your Managing Committee is happy to

report that the Ministry of Road Transport

and Highways vide its Circular No.

RW/NH-33044/31/2014/S&R (R) (Pt)

dated 4th

August, 2014 to the Chief

Secretaries of all the State

Governments/UTs, Principal Secretaries,

Engineer-in-Chief and Chief Engineers of

Public Works Departments of all the

States/UTs etc. has directed to evaluate

the most cost effective pavement

alternative on the life-cycle-cost basis

and not only on the initial cost of

construction basis. The circular further

directs that preference to Cement

Concrete Roads be given even if they are

costlier by upto 20%.

The Government has now already

commenced the process of fixing the

annual rate of cement by inviting tenders

from the cement manufacturers.

Housing

Meeting with the Secretary, Ministry of

Housing and Urban Poverty Alleviation,

Govt. of India : A small delegation of CMA

had interactive meeting with Shri Arun

Kumar Misra, IAS, Secretary, Ministry of

Housing and Urban Poverty Alleviation,

Government of India on 24th

June 2013

and made detailed presentation on RMD

(Rapid Monolithic Disaster Proof)

Technology for urban/rural mass housing.

This technology can be advantageously

used for the construction of houses under

mass housing projects in urban area in the

various Govt. Schemes across the country.

Subsequently, CMA addressed letters

regarding RMD technology to Chief

Minister, Govt. of Uttarakhand; Principal

Secretary Public Works Department,

Uttarakhand; Minister of State for

Housing, Slum Improvement, House

Repairs and Construction, Urban Land

Ceiling etc. Govt. of Maharashtra;

Principal Secretary, Housing Department,

Govt. of Maharashtra; and Chairman &

Managing Director, HUDCO, New Delhi.

53rd Annual Report

27

59th CMA Technical Committee Meeting held in Mumbai on 24.1.2014

TECHNICAL MATTERS

During the year, the CMA Technical

Committee engaged itself with the

emerging Cement Standards, Emission

Norms being finalized by MoEF&CC, apart

from addressing the Fuel Security

concerns of the Industry.

The Committee continued to discharge its

functions under the Chairmanship of Shri

S.K. Wali, Wholetime Director, JK Lakshmi

Cement Ltd., being ably assisted by Shri L.

Rajasekar, Executive President

(Technology & Research Centre),

UltraTech Cement Ltd., Chairman of

the Committee’s Task Force on

Environment, and Shri D.

Sivagurunathan, Advisor (Technical),

The India Cements Ltd., as the

Chairman of the Committee’s Task

force on Energy.

The 56th

, 57th

, 58th

, and 59th

meetings

of the CMA Technical Committee

along with Task Forces were regularly

held during the year.

Besides the above, sub-group

meetings on BIS and Environment were

also held during the period.

The above meetings focused on dealing

with emerging Regulatory Regime calling

for stricter norms for Product & Quality,

Energy Efficiency & Consumption, and

Environmental Emissions that would

impact on the day-to-day Cement plant

operations, and broadly discussed other

matters of concern, viz. Corporate Social

Responsibility (CSR), our continued

National and International collaborative

efforts with Confederation of Indian

Industry (CII), Cement Sustainability

Initiative (CSI), Institute for Industrial

Productivity (IIP), etc., apart from our

information dissemination activities, to

drive industry’s consensus on all Technical

Issues besides responding to the

Authorities on the various issues of the

Member Cement Companies.

During the year, CMA Technical

Committee sustained a great loss in the

passing away of Dr Debashish Ghosh, a

long-time dedicated Senior Member

serving on the CMA Technical Committee

& Sr Joint President, New Projects and

R&D, Birla Corporation Limited. CMA,

however, got some respite with the

continued support of the existing

Members as well as some new Members

28

joining the fold of the Technical

Committee after the reorganization of the

CMA Technical Committee.

A summary of the Issue-wise activities

conducted during the year is presented

below.

Bureau of Indian Standards (BIS) and

Quality Matters

Subsequent to publication of IS 8112:2013

effecting Revision of SO3 in the Indian

Standards for OPC by raising the Chemical

parameter of SO3 percentage Max, given

as ‘3.0’ in IS 8112:1989 to ‘3.5’ and

thereby meeting a long standing demand

of the Cement Industry and your

Association, the Draft Specifications for

Clinker under wide circulation were

discussed threadbare in CMA Technical

Committee, and CMA’s comments on the

issue sent to BIS. Comments received by

BIS from CMA, and other stakeholders on

the Draft Indian Standards Specification

on Portland Cement Clinker were

discussed in its 4th

Meeting of the BIS

Cement and Concrete Panel CED 2:1/P1

on 27th

February 2014. The Panel

considered the comments, the

recommendations of which were

subsequently approved by BIS in its 21st

Meeting of the Cement and Concrete

Sectional Committee (CED 2) held on 14th

March 2014. Most of the

amendments/revisions suggested by the

CMA members were agreed upon and

duly incorporated. While endorsing the

recommendations of the Panel, some of

the BIS Sectional Committee’s decisions

for adoption and publication, relate to -

i. Having Lime Saturation Factor (LSF)

requirement as 0.66 to 1.02 to take

care of clinkers for any variety of

cement.

ii. Having SO3 content requirement as

2.75% maximum to accommodate the

scenario of increasing use of pet coke.

iii. Granulometric composition of clinker

to be as per Table below keeping in

view the practical considerations

including increased use of pet coke:

Sl. No.

Clinker Size

Proportion by mass, Percent

i) < 5 mm 35, Max

ii) 5 – 50 mm 60, Min

iii) >50 mm 10, Max

Energy Issues - Bureau of Energy

Efficiency’s (BEE) PAT Scheme

Pursuant to identification of the various

parameters finalised by the BEE Sub-

Technical Committee of Normalization

towards implementation of the PAT

Scheme for the Cement Sector during the

First Cycle of the scheme (2012-2015),

and subsequent endorsement of the same

by the BEE Technical Committee (Cement

Sector) in its meeting on 24th

July, 2013 to

consider the impact of the parameters

such as Capacity Utilization, Plant Load

Factor, Effect of using Pet Coke, Product

Mix, Power Mix (Import/ Export of

Power), Clinker Import/ Export, Non-

availability of Bio-Mass, and Coal Quality,

etc. The Specific recommendations of the

53rd Annual Report

29

BEE Technical Committee were

considered by BEE, following which BEE

circulated the findings of its Technical

Committee (Cement Sector) on

Normalization of the above impacting

parameters to the Designated Consumers

(DCs) to facilitate implementation of the

PAT Scheme in the Cement sector,

seeking their feedback. The consolidated

comments on the feedback were

discussed and worked out in BEE’s

Technical Committee (Cement Sector)

Meeting on January 10, 2014.

Now, the DCs have to get ready for

conducting the mandatory Audit of their

plants under Section 14(i) which has to be

completed within 18 months after

notification.

Subsequent to the above Meetings of the

BEE Sub-Technical Committee

(Normalization/ Cement Sector), CMA

forwarded its comments to BEE raising

some of the key issues on the decisions of

the BEE Sub-Technical Committee

(Normalization/Cement Sector), involving,

(i) Impact of Quality of Alternate Fuel in

Assessment Year, (ii) Inadequate Fly Ash

Quantity in Assessment Year, (iii) Quality

of coal used in Kiln, (iv) Limestone

Grindability, (v) Addition of New Line after

Baseline Year, (vi) Frequent Grid power

tripping, (vii) Use of baseline Clinker

factor in Assessment Year, (viii) Additional

safety equipment installation in

Assessment Year, and (ix) Energy

consumed on project activity and

installation of energy efficient equipment.

Following developments have since taken

place in implementation of the BEE’s PAT

Scheme for the Cement sector:

a) Final report on Normalization factors

and Modified Form-1 has been

submitted by the Sub-Technical

Committee for Cement Sector.

b) BEE has sent the Normalization

document along with the Modified

Form-1 to all the 85 DCs in the Cement

Sector and requested all the DCs to

submit:

i) Old Form-1 (As filled during the

baseline year) for the year 2012-13

(Previous Year) and 2013-14

(Current Year), which was used last

year while submitting the energy

consumption return.

ii) New Modified Form-I with inbuilt

Normalization Factor for the year

2007-08, 2008-09 & 2009-10

(Baseline year) and 2013-14

(Current Year). This form has inbuilt

normalization factors, and has been

developed now.

(c) All DCs were requested to fill the

necessary data in above two forms and

send to their respective State

Designated Agencies (SDAs) with a

copy to Bureau of Energy Efficiency

before 30/06/2014.

30

BEE, in association with the State

Designated Agencies (SDAs), has

organised four Regional Interactive

Workshops in June 2014, to explain the

Normalization factors and Modified

Form-1 for Cement Sector, as finalized

by the Technical and Sub-Technical

Committee of Cement Sector, at

Ahmedabad, Bengaluru, Udaipur and

Chennai.

Environment

On the Environmental front, CMA

continued to pursue vigorously the

emerging issues and focused on working

in tandem with the Govt. Authorities to

evolve realistic environmental standards

for Cement Industry. These include

MoEF&CC, Central Pollution Control

Board (CPCB), State Pollution Control

Boards (SPCBs), DIPP, etc.

Emission Standards for Cement

Industry

A series of intense interactions with the

Cement Industry Stakeholders, CMA and

NCB were held for over more than 3 years

by MoEF&CC/CPCB, in the process of

developing the Emission Norms. CMA

actively participated in these technical

deliberations and underlined the need to

prescribe implementable Standards and

Norms, particularly in view of their

introduction newly to the country’s

Cement plants. In the last Meeting of the

Expert Committee of MoEF&CC on 30th

January 2014, the Cement Industry had

placed its specific concerns on the Norms,

and followed it up with its letter dated 3rd

February 2014.

MoEF&CC has since notified the Emission

Norms for SO2, NOx & Load-based

Particulate Matter (PM) for the Cement

Industry vide Gazette Notification on 25th

August 2014 that are too stringent to

achieve within the given time-frame

allowed.

These Norms are at variance with the

suggestions of CMA for ensuring

enforcement of comprehensive and

realistic Emission Standards and positive

PAT Workshop at Udaipur on 24th June 2014

A Group of CMA Environmental Sub-Group with

Shri D.N. Pandey, Member-Secretary,

Rajasthan State Pollution Control Board at meeting

on 3.1.2014 at Jaipur

53rd Annual Report

31

compliance in a phased manner and

subject to review after 5 years for

applying stringency if needed, to the

Norms proposed after examining the

environmental performance of the

Cement plants over a specified period as

reasonable, after their introduction.

The above Norms issued by the MoEF&CC

have evoked strong apprehensions in our

Member Cement Companies regarding

the Cement Industry’s current capability

to comply with these Norms and,

therefore, their implementability. CMA,

accordingly, made a strong

representation on 25th

September 2014

to MoEF&CC, bringing to its attention the

concerns of the Industry that were earlier

brought out before CPCB/MoEF&CC with

regard to the implementation of the

Emission Norms, particularly the

Industry’s specific concerns on the impact

of poor quality of input raw

materials/fuel/power, on the Emissions,

and the practical difficulties in meeting

them within the given time-frame, the

proposed standards in the existing plants

having constraints of technology vintage

and layout, besides the huge capex and

operating costs required for upgradation

etc. Highlighting the Cement plants’

difficulties to meet the notified Norms in

respect of each of Particulate Matter

(PM), NOx, within the allowed time-frame,

the Ministry was requested for a review

of the notified Norms so that a self-

sustaining Cement Industry does not get

demoralised and is obliged to face

consequences of non-compliance.

Development of Environmental Standards

for Mining of Limestone

In regard to the newly emerging

Environmental Standards for the Cement

sector in case of Limestone Mining, CPCB

convened a meeting of stakeholders on

30th

January 2014, where Central Institute

of Mining and Fuel Research (CIMFR),

Dhanbad made a presentation on the

findings of their consolidated study

covering the additional five plant mines as

proposed by the industry after having

conducted the measurements during

March–May 2013 in five selected plants

of CMA Member Companies. CMA

participated in the meeting alongwith the

representatives from Member Cement

companies and apprised the Authorities

of the specific constraints, namely,

scarcity of water for prevention and

control of emissions vis-à-vis the

increasing pressure for water

conservation on the other hand, not

allowing the plants to meet the fugitive

emission standards for limestone mining

being proposed. As a follow-up, CMA

wrote to CPCB that the proposed activity-

wise fugitive emission standards for PM10

and PM2.5 in limestone mining be

stipulated at 1200 µg/m3 and 750 µg/m3

respectively, to begin with. This has to

be followed by the Peer & Core Expert

Group Meeting to consider the

recommendations further, before CPCB

takes a final call.

32

Other Initiatives

Increasing Thermal Substitution Rate (TSR)

in Indian Cement Industry

CMA entered with IIP, Washington DC, a

Consulting Agreement for the IIP-funded

project on “Increasing Thermal

Substitution Rate (TSR) with increased

usage of Alternate Fuel and Raw materials

in the Indian Cement Industry”. Under

the First phase of the Project, an Action

Plan towards increasing AFR usage was

developed, with the participation and

involvement of multi-stakeholder groups

comprising Industry, Policy Makers,

Regulators, Technology providers,

Academia, etc. from across the world. The

Second phase culminated with an

International Conference on “Enhanced

Usage of Alternate Fuels & Raw Materials

(AFR) - Co-Processing in Cement Plants”

organized jointly by CMA & IIP, in New

Delhi, during 7- 8 August 2013, to share

the findings of the IIP-CMA study under

Phase-I of the Project on developing an

Action Plan towards increasing AFR usage.

The Conference was inaugurated by Mr.

B.K. Chaturvedi, Member, Planning

Commission, Govt. of India, with

Welcome address by Dr Jigar V. Shah,

Executive Director, IIP, Washington DC,

Introductory address by Mr. Ratan K.

Shah, Group Executive President,

UltraTech Cement Ltd, and Special

addresses by Mr. Philippe Fonta,

Managing Director, World Business

Council for Sustainable Development-

Cement Sustainability Initiative,

Switzerland, and Mr. M.A.M.R. Muthiah,

President, CMA. Mr. Saurabh Chandra,

Secretary (DIPP), Ministry of Commerce &

Industry, Govt. of India, delivered the

Keynote address. A CMA-IIP joint

publication “Action Plan for Enhancing the

Use of Alternate Fuels and Raw Materials

in Cement Industry” was formally

released by the Chief Guest, Mr B.K.

Chaturvedi.

The Conference was a huge success with

active participation of more than 250

invitees and delegates representing cross-

section of experts from the State and

Central Regulatory Authorities, Cement

Industry, Service Providers, Universities

etc. from across the world.

As a follow up to the earlier study

conducted, efforts are now being made to

continue these initiatives through a fresh

tie-up with IIP which has been formulated

and a fresh Agreement signed. As per this

Agreement, CMA in association with IIP,

has decided to organize the “Second

International Conference on Enhanced

Usage of Alternate Fuels and Raw

Materials in Cement Industry” on 19-20

February 2015 in New Delhi. The

Conference is broadly expected to

address the various environmental issues

which still continue to come in the way of

increasing TSR%, sharing the Global

experiences and perspective, leveraging

CSR initiatives now legally recognized and

available for increased efforts in

processing of Municipal Wastes, besides a

few case studies on the success of various

53rd Annual Report

33

Alternative fuel usages in Cement plants.

To facilitate the Cement Machinery and

Equipment manufacturers dealing with

Alternate Fuels related systems to share

the detailed features of their products

with the participants, on the sidelines of

the Conference, CMA is arranging for

Exhibitions space for the prospective

Exhibitors.

CMA and Cement Sustainability

Initiatives (CSI)

CMA participated in the CSI partners’

meeting held in Vancouver, Canada on

30th

September, 2013 where a

presentation on “Indian Cement Industry

Towards Low Carbon Roadmap” was

made by the Secretary General, Shri N.A.

Viswanathan and Dr. S.K. Handoo,

Advisor(Technical).

Chief Executives of other Cement

Associations from USA, Canada, Japan,

Europe, Brazil, South Africa, Australia,

China, participating in the meeting also

made presentations on the status of their

industry.

The CSI Annual Forum meeting was held

in the same venue during 1-2 October

2013. Some interesting presentations

made included Green Buildings,

Sustainable Construction. Besides the

break-out sessions, amongst others,

deliberated on Research and Innovation,

New Requirements for materials, Energy

efficiency and conservation.

Following the CSI Partners’ meeting and

the CSI Annual Forum held in Vancouver,

Canada in September-October last year,

the CSI-WBCSD organized its Meeting of

Task Force 6(Communications) for the

first time outside Europe, in Mumbai on

25-26 February 2014. Representatives

from our Member Cement companies,

namely, Dalmia Cement Bharat Ltd,

Heidelberg Cement India, My Home

Industries, Zuari Cement, besides ACC and

Ambuja Cements participated in the

meeting. Overseas representatives of

CRH, Italcementi, Lafarge, Taiheiyo

Cement, IMS also participated in the

meeting. CMA was represented by Dr.

S.K. Handoo, Advisor (Technical), and

Shri S.V. Joshi, Jt Secretary.

The meeting discussed key action items in

2014. Mr Philippe Fonta of CSI presented

an overview of the different work areas of

the CSI while Ms Sunita Pendse of

UltraTech supplemented about TF6,

specifically on the role of a TF6 member.

In order to increase the awareness level

about the CSI within companies, it was

suggested to produce a list of tools and

resources as a handy reference for

companies. Dr. S.K. Handoo, Advisor

(Technical), CMA, presented the

challenges and opportunities of the Indian

Cement Industry.

Highlighting the importance of CSI’s

participation and prominent presence in

key local events, it was suggested that CSI

should also explore opportunities to be

featured as the voice of the cement and

concrete sector in key environmental

events to raise the profile of the CSI and

to establish a seat for the Cement

Industry’s presence in the discussion.

34

CEO ROUNDTABLE ON CSR FOR

CEMENT SECTOR IN LIGHT OF

SECTION 135, COMPANIES ACT 2013

A Google Panel Discussion on CSR for

Cement Sector in light of Section 135 of

the New Companies Act 2013, was held

on 13th

March 2014. The Panel Discussion

was organized by IIP and NextGen, a

leading CSR and Sustainability

Management Company.

Section 135 of the Companies Act, 2013

mandates reporting of CSR initiatives and

spending at least 2% of Net Profit on CSR

activities by Companies with net worth of

Rs.500 crores or more or turnover of

Rs.1000 crores or more or a net profit of

Rs.500 crores. Indian Cement Industry,

with an estimated CSR corpus fund of

over Rs.210 crores, will be one of the

major contributors to the CSR kitty/pie

compared to the total capital to be

generated, which is of the order of

Rs.20,000 crores.

The objective of the Panel discussion was

to brainstorm on how best the Cement

Industry can further the CSR agenda in

India through a collaborative approach for

maximum impact, while meeting

compliance requirements of Section 135

of The Companies Act, 2013 i.e. creating a

win-win situation for the society and the

businesses alike by promoting the usage

of Municipal Solid Waste (MSW) in

cement sector.

The discussions were guided by an

experienced and distinguished group of

stakeholders that included, Dr Bhaskar

Chatterjee, Director General and CEO,

Indian Institute of Corporate Affairs,

Ministry of Corporate Affairs, Govt. of

India; Secretary General, CMA and

CEOs/Senior Officials of CMA Member

Cement Companies, in addition to Dr.

Jigar Shah, ED, IIP.

The CEOs of the cement companies, while

reiterating their commitment to CSR also

shared a lot of optimism for creating win-

win models of collaboration with the

Society. CMA representatives, while

mentioning about their ongoing initiatives

with IIP on promoting the use of

Municipal Solid Waste (MSW) as a fuel to

replace coal in cement kilns, felt that such

initiatives having high environmental and

societal impact, could possibly qualify as a

CSR activity. Director General, IICA, while

clarifying some of the issues raised by the

panelists mentioned that the new Act

allows for a greater flexibility for planning

initiatives that go beyond the traditional

approach to CSR. Executive Director, IIP,

offered to play the role of a catalyst for

promoting partnership between Industry,

Govt. and the society in taking advantage

of the opportunities and in dealing with

the possible challenges under the new

CSR Act.

10th

Green Cementech

As in the past, CMA joined hands with CII

to organize the 10th

“Green Cementech

2014” – Conference & Exposition on 15 &

16 May 2014 at Hyderabad. The Theme

for this year’s Conference was ‘Make

53rd Annual Report

35

Indian Cement Plants World Class in

Green’.

The areas of focus in the Conference

included (a)Technological advancement in

Waste Heat Recovery systems and

operational case studies; (b) Special focus

on innovation in renewable energy

applications and financing options,(c)

Energy efficiency in auxiliary equipments,

and (d) Recent developments on

composite cement & policy framework,

among others. A publication on ‘Manual

on Energy Benchmarking for Cement

Industry’ was also released, on the

occasion.

Secretary General, CMA, in

his Special Address,

highlighted the

accomplishments of Indian

Cement Industry in adoption

of various energy

conservation technologies

for achieving environment

sustainability. He also

highlighted the progress of

Cement Industry on

adoption of waste heat

recovery systems and higher thermal

substitution with alternate fuels in kilns.

In the Master Speaker Session, Shri N.A.

Viswanathan, Secretary General, CMA,

shared the challenges & prospects of

Cement Industry and also highlighted the

role of technology related factors to

improve energy efficiency levels and thus

reducing the energy consumption. The

Session included a Presentations on

producing fuel by using algae growth

technology by utilizing the CO2 emission

generated from cement kilns by Mr. H.J.

Nielsen, from LV Technology Public

Company Limited.

Shri H.M. Bangur, Managing Director,

Shree Cement Limited was felicitated at

the Conference for his remarkable

contribution to the Cement Industry. In

the CEO’s Panel discussions that followed,

Shri H.M. Bangur in his Address stressed

on the need of sustainability thoughts in

business models and said that the Green

and Clean business is profitable.

Shri Bangur also shared his experience on

various areas where Shree Cement is

Felicitation of Shri H M Bangur, Managing Director, Shree Cement

Limited for his exemplary contribution in promoting growth and

sustainability in the Cement Industry during his long

and distinguished carrier

Shri N.A. Viswanathan, Secretary General, CMA,

Chairing the Session I : Master Speaker Session

36

pioneering the concept of energy

efficiency in manufacturing and adoption

of newer technologies like synthetic

gypsum production from exit flue gases in

Indian Cement Industry. Shri Bangur also

emphasized the need on increasing the

R&D efforts by Indian cement

manufacturers to achieve higher

standards in manufacturing and product

innovation.

Technological Information Dissemination &

Publications

During the year under review, CMA

published four issues of the Quarterly

Journal, “Cement, Energy and

Environment” focusing on the Technical

developments impacting on the Cement

Industry. The Journal continues to serve

as an excellent medium of communication

and dissemination amongst the ground

level technical personnel and executives

of the Member Cement Companies on

rapidly advancing spheres of technology

and developments across the world

including product quality & standards,

energy, environment, climate change and

sustainability issues bearing huge

influence on the Cement Industry. Articles

from eminent National and International

Experts dealing with these subjects are

regularly published. A number of papers

are being regularly contributed by our

Member Companies related to energy

efficiency, waste utilization, development

of newer cements, reducing carbon

footprints, etc. in addition to sharing their

technical experiences and achievements.

Alongside, there are regular insertions of

summary of important articles, news

briefs and events summary culled from

reputed journals, published brochures

and newspapers and magazines covering

technical developments impacting the

Cement Industry.

COMPETITION COMMISSION OF INDIA

Appeals before the Competition Appellate

Tribunal: against the Orders of Competition

Commission of India in -

(i) Appeal No. 103/2012

(against Case No. 29/2010); and

(ii) Appeal No. 122/2012

(against RTPE No. 52/2006)

As reported last year, CMA had filed an

Appeal (Appeal No. 103/2012) before the

Competition Appellate Tribunal (CAT) on

27th

August, 2012, including prayer for

complete Stay of the operation of the

Competition Commission’s Order dated

20.06.2012 in case No. 29/2010. Since

the Commission had held CMA guilty in

the case No. 52/2006 also, CMA filed

Appeal (Appeal No. 122/2012) in this

matter as well before the Competition

Appellate Tribunal on 27th

September,

2012 seeking relief to set aside the Order

of the CCI passed in RTPE No.52/2006 on

30.7.2012.

While disposing of the stay applications in

the above Appeals, the Hon’ble

Competition Appellate Tribunal had

passed an Order on 17th

May, 2013 and

decided that there is a prima-facie case

for granting of stay, at least in respect of

the penalties, and accordingly, granted

53rd Annual Report

37

stay to the penalties with a condition that

the appellants deposit 10% of the

penalties imposed. As regards the orders

of ‘cease’ and ‘desist’ the Tribunal

refused to stay that order against the

appellants, including the Cement

Manufacturers’ Association stating that

they do not find anything wrong at least

prima-facie.

In compliance of the above Order, CMA

deposited 10% penalty amounting to

Rs. 7,30,000/- on 14th

June, 2013.

After the grant of Stay, the Tribunal has

been hearing the matter and, as of now,

the arguments on behalf of the Appellant

(M/s.Lafarge India Pvt. Ltd.) by Senior

Advocate Shri Gopal Subramaniam stands

heard.

The captioned matters were listed before

Justice G.S. Singhvi, newly appointed

Chairman, Competition Appellate Tribunal

on 26th

November, 2014. After hearing

the parties, the Chairman directed that

the matter be now listed on 25th

February,

2015 for hearing on day-to-day basis till

the conclusion of arguments.

SERVICE TAX ON MEMBERSHIP

SUBSCRIPTION

Members may kindly recall that CMA had

received two Show Cause Notices (SCNs),

the first for the period 2005-06 to

September 2009 and the second for the

subsequent period from October 2009 to

September 2011 from Service Tax

Department, New Delhi, for a total Service

Tax liability of Rs. 10,27,73,198/- and an

equal amount of penalty, besides interest.

CMA filed its replies to the above SCNs

with the Commissioner, Service Tax, Delhi.

Commissioner, Central Excise & Service

Tax, Panchkula, thereafter passed an

Order-in-Original dated 31.10.2012

against the above two SCNs confirming

Service Tax payable amounting to

Rs.1,76,19,563 for the above periods. An

equal amount of penalty i.e.

Rs.1,76,19,563/- was also levied in

addition to penalty of Rs.10,000/- u/s 77

of Chapter V of Finance Act, 1994.

This worked out to a total amount of

Rs. 3.52 crores besides interest, as against

the original demand of Rs.10.28 crores

with an equal amount of penalty and

interest applicable on tax demanded up to

the date of payment of tax.

Against this Order, two separate Appeals

were filed by CMA on 5th

February, 2013

before the Customs, Excise & Service Tax

Appellate Tribunal (CESTAT), New Delhi,

praying to (a) Set aside the impugned

Order in original dated 31.10.2012 passed

by the Commissioner, Central Excise &

Service Tax, Panchkula and allow in

Appeal in full with consequential reliefs;

(b) Set aside the Service Tax demand

along with interest and penalty and stay

its recovery till the disposal of the Appeal;

(c) Grant a personal hearing etc.

38

CMA received a communication dated 6th

November, 2013 from the Office of the

Asstt. Commissioner of Service Tax, New

Delhi informing that in CMA’s case no stay

has been granted till now, as stay

application filed by CMA is still pending in

CESTAT. The communication added that

as per Board Circular No. 967/01/2013-CX

dated 01.01.2013 “Recovery (is) to be

initiated 30 days after the filing of appeal,

if no stay is granted or after the disposal

of stay petition in accordance with the

conditions of stay, if any, whichever is

earlier”. It further stated that the amount

had become recoverable from CMA and

(had) requested CMA to pay the

Government dues as “Stay application

pending” status did not hold any ground

in terms of Finance Act, 1994. It had also

added that if no compliance was received

within 15 days of receipt of the letter

recovery proceeding under Section 87 of

the Finance Act, 1994 will be initiated

against CMA.

CMA filed its reply on 25th

November

2013, as drafted by M/s. Lakshmikumaran

& Sridharan, to the above communication

dated 6th November, 2013 received from

the Office of the Asstt. Commissioner of

Service Tax, New Delhi, stating that as

regards the issue of recovery of the dues,

it is a settled law that no coercive action

for recovery ought to be taken by the

Department during the pendency of the

stay application before the Appellate

authority. Citations of various High

Courts were quoted in the reply. CMA

had prayed that the Department may

kindly refrain from undertaking any

coercive action for recovery till the

disposal of the stay application by the

CESTAT, New Delhi.

You Association is happy to record that

the Stay Petitions have since been

allowed and granted dispensation with

the conditions of Pre deposit of dues by

the Hon’ble Appellate Tribunal vide its

Stay Order No.53659-53663/2014 dated

21.10.2014. The appeals were listed for

final disposal on 18th

December 2014.

Due to paucity of time the appeals could

not come up for hearing on 18th

December 2014. The case is now listed

for 5th

March 2015.

AMENDMENT TO DEFINITION OF

“INSTITUTIONAL CONSUMER” IN LEGAL

METROLOGY PACKAGED COMMODITIES

RULES, 2011 VIDE NOTIFICATION DATED

6.6.2013 - CLARIFICATION BY GOVT.

As members are aware, in the case of

Institutional & Industrial Sale, Cement

Industry is claiming concessional rate of

excise duty.

The definition of “Institutional

Consumers”, which was earlier provided

for in Explanation of Rule 3 of Legal

Metrology Packaged Commodities Rules,

2011 has been shifted to Rule

2(bc) w.e.f. 06.06.2013 with minor

modification in the wording of the

definition. The definition of Institutional

53rd Annual Report

39

Consumer before amendment of

06.06.2013 was given as -

“(i) ‘institutional consumer’

means the institutional consumer

like Transportation, Airways,

Railways, Hotels, Hospitals or any

other service institutions who

buy packaged commodities from

the manufacturer for use by that

institution.”

w.e.f. 6.6.2013 institutional

consumer is defined as -

“ ‘institutional consumer’ means

any institution which hires or

avails of the facilities or service in

connection with transport,

hotels, hospitals or such other

service institutions which buy

packaged commodities directly

from the manufacturer for use by

that institutions.”

In view of this change, some members

had doubts as to what exactly is covered

in the definition of “institution” and for

that purpose the members felt that there

is a need for seeking clarification from the

Legal Metrology Division, Department of

Consumer Affairs, Government of India.

Accordingly, in April, 2014 CMA made a

representation to Secretary, Deptt. Of

Consumer Affairs, Ministry of Consumer

Affairs, Government of India stating that

the Cement Industry wants to understand

from the Legal Metrology Division,

Department of Consumer Affairs as to the

purpose and the background in providing

the exemption to the Industrial and

Institutional consumers under Rule 3 from

the applicability of Chapter II of Packaged

Commodities Rules and particularly the

category of customers covered under the

definition of Institutional Consumer under

explanation 3(i) and the definition of

Institutional Consumer after 6.6.2013 in

definition 2(bc), the background, and the

purpose thereof before and after the

change of definition of Institution w.e.f.

6.6.2013.

In response to above CMA representation,

the Legal Metrology Division, Ministry of

Consumer Affairs vide its letter No.WM-

10(23)/2014 dated 9.5.2014 informed

CMA that “the intention and meaning of

“institutional consumer” after inserting

Rule 2(bc) in the PC Rules vide GSR 359(E)

dated 6th

June, 2013 is the same as it was

before amendment, under the

explanation of Rule 3, and only it has been

shifted from Explanation Part of Rule 3 to

Definition Part of Rule 2 with more clarity

in the wordings”.

USEFUL LIVES TO COMPUTE

DEPRECIATION – COMPANIES ACT-2013

As per Schedule XIV of the Companies Act,

1956, the rate of depreciation for

Continuous Process Plant was specified as

15.33% under Written Down Value (WDV)

method and 5.28% under Straight Line

Method (SLM). This translated to about

18 years of useful life of the plant. In the

Companies Act, 2013, as per Schedule II

(Useful Lives to Compute Depreciation

40

applicable to Section 123 i.e. Declaration

of Dividend) useful life for continuous

process plant for which no special rate

has been given was specified as 8 years.

Since no special rate was prescribed for

Cement Plants, being continuous process

plant, cement plants had to charge

depreciation over the period of 8 years.

This anomaly, based on the inputs

provided by the members, was brought to

the notice of Secretary, Ministry of

Corporate Affairs, by CMA vide

representation No. 181/340/2013 dated

22nd

October, 2013.

In response to our above representation,

CMA was invited by the Ministry of

Corporate Affairs for discussion in

February, 2014. Accordingly, a CMA

delegation led by Dr. S. Chouksey, Vice

President, CMA called on Dr. Amandeep

Singh (IRS), P.S. to Shri Sachin Pilot, the

then Hon’ble Minister of State for

Corporate Affairs and apprised him that

Cement & Steel industries are similar in

nature and their end usage is

complementary and depreciation as per

earlier Companies Act, 1956 was also

similar for both the Industries. However,

in the Companies Act, 2013 the life

defined for Steel & Non Ferrous Metals

are 20-25 years and 25-40 years

respectively whereas for Cement Industry

it is only 8 years.

Ministry of Corporate Affairs, Government

of India being convinced of the

genuineness of the representation of

CMA, issued Notification No. G.S.R.237(E)

dated 31st

March, 2014 substituting the

following clause in Part ”C” in para 5, in

item IV, in sub-item (i) for clause (b) of the

Schedule II of the Companies Act, 2013:

“(b) Continuous process 25 years

plant for Which no

Special rate has been

prescribed under (ii)

below [NESD] ”

With the above Notification, altering the

period of the useful life for charging

depreciation for cement plant has been

fixed at 25 years as against the 8 years

earlier provided in the Companies Act,

2013.

EXCLUSION OF MANUFACTURING OF

CEMENT FROM NEGATIVE LIST OF

INDUSTRIES, PUNJAB GOVT

NOTIFICATION IN DECEMBER 2013

The Government of Punjab promulgated a

new Industrial Policy to attract new

investment for boosting industrial

environment in the State. In the State

Govt. Notification dated 5th

December

2013 the “Fiscal Incentives for Industrial

Promotion-2013”, the Punjab Govt. seems

to have inadvertently included the

“Cement Industry” in the list of sectors,

which shall not be eligible for incentives

available to other industries.

CMA, therefore, in its letter dated 15th

January 2014 addressed to the Hon’ble

Chief Minister of Punjab represented that

cement manufacturing is a capital-

intensive industry and also one of the

core industries whose growth and

53rd Annual Report

41

development is essential for the growth

of the infrastructure sector and

consequently the growth of the economy

of the State and the Nation, as well. The

Cement Industry not only generates direct

employment but also a large-number of

downstream indirect employment as well

and is one of the industries, which has

been utilizing hazardous environmental

material such as “fly ash” and “steel slag”

in its production, thereby contributing

significantly to the maintenance of

ecological balance and containing

environmental degradation. Further, the

Cement Industry is also capable of

utilizing other agricultural wastes like

husks, bagasse, etc. as possible alternate

fuel in place of fossil fuel like coal, subject

to their consistent availability. There

cannot be easy flight of Cement Industry

to other locations because of the very

nature of the process, the machinery used

and the heavy capital required to install a

unit of cement manufacture.

CMA strongly requested the authorities to

include the Cement Industry for being

allowed incentives under “Fiscal

Incentives for Industrial Promotion-2013”

Scheme and to remove “Manufacture of

Cement” from the Negative list.

INDUSTRIAL RELATIONS

The Managing Committee is happy to

report that the Labour-Management

Relations in Member Companies

continued to be cordial, harmonious and

healthy during the year under review.

The Memorandum of Settlement (MOS)

dated 11.2.2011 signed between the CMA

and Cement Workers’ Federations and

Central Trade Unions which was valid for

a period of 4 years from 01.04.2010 to

31.03.2014.

In the months of January/February 2014

INCWF, ABCMMS, AICWF, CITU, HMS, and

LPF had sent to CMA the Notice of

Termination of the National Level

Settlement (dated 11th

February, 2011

which was valid up to 31st

March, 2014)

and submitted fresh Charter of Demands.

The same were circulated to Members in

April, 2014.

As was done hitherto and as advised by

President, CMA, in April, 2014 CMA sent a

communication to members requesting

them to advise CMA clearly whether

they authorize CMA on their behalf to

negotiate with the Workmen

Federations/Unions towards reaching

reasonable wage settlement along with

the name and capacity of the units for

which the authorization is being accorded

and also inform the names of the units

and their capacity to which the

authorization is not being given.

Members were requested to send their

carefully considered option either

favouring or otherwise the industry-wide

negotiation/Settlement.

CMA member cos. having about 67% of

their capacity authorized CMA to

negotiate with the Labour towards

reaching a settlement/understanding with

42

regard to the demands raised by the

workmen Federations/Unions.

Three Wage Negotiation Meetings have

been held with the representatives of

Workmen Federations/Labour Unions.

On behalf of Management S/Shri N.

Srinivasan, Past President, CMA and Vice

Chairman and Managing Director, The

India Cements Ltd., O.P. Puranmalka,

President, CMA, Dr. S. Chouksey, Vice

President, CMA and Shri Prashant Bangur,

Director, Shree Cement Ltd. participated.

The major issues raised by the workmen

representatives were Grant of Interim

Relief of Rs.15,000/- per month w.e.f.

1.4.2014, Coverage of Contract Labour in

MOS and implementation of the MOS to

Grinding Units also; implementation of

MOS by all the cement units who

authorized CMA for Nationwide

Negotiations; Revision of Pay Scales;

Constitution of a Committee to look into

the aspect of Nomenclature for different

categories of workmen; Increase in Rate

of Dearness Allowance etc.

The Managing Committee at its meeting

held on 8th

August, 2014 unanimously

decided that the issue of Interim Relief

cannot be considered. The endeavour

should be to settle the negotiations as

early as possible.

In the meeting held on 13.8.2014 the

Management informed the workmen

representatives that as per decision of

Managing Committee sanctioning of

Interim Relief is not possible. It was also

indicated that expectations of the

Workmen Federations/Unions are very

high. To discuss the demands/issues

raised by the Workmen

Federations/Unions and bring the same to

a moderate level for further discussion by

the Management and the Workmen

representatives a Working Group

comprising of representatives from

Management and Workmen

Federations/Unions was constituted. The

meeting of the Working Group was held

on 30th

August 2014 in New Delhi.

The next meeting of the Management and

the representatives of the Workmen

Federations/Unions was held on 20th

October 2014 in Chennai. While the

workmen representatives wanted an

increase of above Rs.10,000/- per month

besides discussion on neutralization of DA

rate and other related issues, the

Management representatives suggested

an internal discussion amongst the

various labour representatives before

they come up with a set of reasonable

proposition.

The negotiations are continuing.

DEVELOPMENT COUNCIL FOR CEMENT

INDUSTRY

The First Meeting of the reconstituted

Development Council for Cement Industry

was held on 17th

October 2013 under the

Chairmanship of Shri M.A.M.R. Muthiah,

the then President, CMA and MD,

Chettinad Cement Corpn. Ltd. The

meeting was attended by Shri Talleen

Kumar, Joint Secretary, DIPP and officials

53rd Annual Report

43

from concerned Ministries, apart from

representatives from NCBM and Cement

Industry.

The Council discussed and took note of

the major concerns of the Cement

Industry particularly pertaining to (a)

Improving the growth of the Cement

Industry through promotion of Cement

Concrete Roads and White topping;

Affordable housing and Cement Concrete

Canal lining (b) Coal crises in Cement

Industry, Steps to improve Coal

availability to Cement Industry (Linked

Coal/FSA, etc.) and Incentivise increased

usage of AFR (c) Backward linkages for

availability of limestone and the problems

faced by the Cement Industry regarding

limestone (d) Logistics support to Cement

Industry – Rail (e) Data collection and

compilation completely stopped – after

CCI’s Order of June, 2012 and (f)

implementation of the recommendations

of the Working Group on Cement Industry

by concerned Ministries/Departments.

CMA PUBLICATIONS/PERIODICALS

During the year 2013-14, CMA brought

out/ updated the following publications/

periodicals:

� Cement Concrete Roads For Rural

India- A Must

� Cement, Energy and Environment –

Quarterly

� Cement Journal – Quarterly

� Cement News Digest – Weekly

A detailed list of CMA publications

brought out in the last few years is given

in Annexure-VIII.

AUDIT

The Accounts of the Association for the

year ended 31st

March 2014 have been

audited by M/s K.S. Aiyar & Co., Chartered

Accountants.

New Delhi (O.P. Puranmalka)

December 2014 President

44

52nd

Annual Session of CMA – 9th

January 2014

Dr. E.M. Sudarsana Natchiappan, Hon’ble Minister of

State for Commerce and Industry inaugurating the

52nd Annual Session of CMA by lighting auspicious lamp.

To his left Mrs. Vinita Singhania, Past President, CMA

and Managing Director, J.K. Lakshmi Cement Ltd.

(R to L) Shri O.P. Puranmalka, Vice President, CMA, Shri M.A.M.R. Muthiah, President, CMA and Shri N.A. Viswanathan, Secretary General, CMA

Shri M.A.M.R. Muthiah, President, CMA

presenting Bouquet to Chief Guest

Dr. E.M. Sudarsana Natchiappan,

Hon’ble Minister of State for

Commerce and Industry

Shri M.A.M.R. Muthiah, President, CMA delivering Welcome Address

53rd Annual Report

45

Chief Guest Dr. E.M. Sudarsana Natchiappan, Hon’ble Minister of State for

Commerce and Industry, Govt. of India,

delivering Inaugural Address

Chief Guest, Dr. E.M. Sudarsana Natchiappan,

Hon’ble Minister of State for Commerce and Industry

releasing CMA Publication “Cement Concrete Roads for Rural India - a Must”

A view of participants at

the 52nd Annual Session

46

LIST OF ANNEXURES

ANNEXURE-I Pan India Performance of Cement Industry

ANNEXURE-II Chairmen/Co-Chairmen of CMA Committees

ANNEXURE-III Month-wise Coal Receipts against FSA/Linkage

ANNEXURE-IV Procurement and Consumption of Fuel including for

Captive Power Plants

ANNEXURE-V Cement and Clinker Loading – Railway Zone-wise

ANNEXURE-VI List of Workshops/Seminars on Cement Concrete

Technology Participated/Sponsored by CMA

ANNEXURE-VII List of Presentations/Meetings regarding Cement

Concrete Roads and White-Topping

ANNEXURE-VIII List of CMA Publications/Periodicals

*****

53rd Annual Report

47

ANNEXURE-I

PAN INDIA PERFORMANCE OF CEMENT INDUSTRY (Information collected directly and indirectly from different sources by CMA)

(Mn.t)

Year

Capacity at

the Year End

Cement

Production

VII Plan

1989-90 (Terminal Year) 61.74 45.42

Annual Plans

1990-91 64.55 48.90

1991-92 66.98 53.61

VIII Plan

1992-93 70.61 54.08

1993-94 77.38 57.96

1994-95 84.22 62.35

1995-96 96.18 69.64

1996-97 105.68 76.22

IX Plan

1997-98 110.93 83.16

1998-99 116.98 87.91

1999-00 120.16 100.45

2000-01 133.04 100.11

2001-02 146.04 106.90

X Plan

2002-03 150.48 116.35

2003-04 157.05 123.50

2004-05 164.70 133.57

2005-06 171.10 147.81

2006-07 178.89 161.64

XI Plan

2007-08 209.20 174.31

2008-09 232.54 187.60

2009-10 294.32 217.44

2010-11 323.02 227.80

2011-12 340.44 247.45

XII Plan

2012-13 350.00 * 248.23 @

2013-14 360.00 * 255.57@

@ From website of the Office of the Economic Advisor, DIPP

* From published Articles and News Reports

48

ANNEXURE-II

CHAIRMEN/CO-CHAIRMEN OF CMA COMMITTEE

CMA COMMITTEE ON COAL MATTERS

Shri Arun Daga Chairman

Sr. Vice President

(Central Procurement Cell)

UltraTech Cement Ltd

Shri C.G. Sudarshan Co-Chairman

General Manager (Mtls.)

The Ramco Cements Ltd

(Formerely known as Madras Cements Ltd)

CMA COMMITTEE ON RAILWAY MATTERS

Shri Rajeev Mehta Chairman

Executive President

UltraTech Cement Ltd

Shri Sunil Agarwal Co-Chairman

Sr. Vice President (Mktg.)

JK Lakshmi Cement Ltd

CMA FINANCE/LEGAL MATTERS COMMITTEE

Shri K.C. Birla Chairman

Sr. Executive President &

Chief Financial Officer

UltraTech Cement Ltd

Shri Ajai Jain Co-Chairman

Country Head - Legal & Secretarial

Lafarge India (P) Ltd

CMA TECHNICAL COMMITTEE

Shri S.K. Wali Chairman

Wholetime Director

JK Lakshmi Cement Ltd

Shri L. Rajasekar Co- Chairman

Executive President

(Technology & Research Cell)

UltraTech Cement Ltd

53rd Annual Report

49

CMA ENERGY TASK FORCE

(Part of Technical Committee)

Shri D. Sivagurunathan Chairman

Advisor (Technical)

The India Cements Ltd

Shri R. Bhargava Co-Chairman

Vice President (R&D)

Shree Cements Ltd

CMA ENVIRONMENTAL TASK FORCE

(Part of Technical Committee)

Shri L. Rajasekar Chairman

Executive President

(Technology & Research Cell)

UltraTech Cement Ltd

Shri P.L. Subramaniam Co-Chairman

Executive President (Operations)

The India Cements Ltd

*****

50

ANNEXURE-III

MONTH-WISE COAL RECEIPT AGAINST FSA/LINKAGE (2009-10 to 2013-14)

(Mn.t.)

Month 2013-14 2012-13 2011-12 2010-11 2009-10

April 0.87 0.85 0.97 0.90 0.91

(1.30) (1.36) (1.31) (1.18) (1.15)

May 0.89 0.98 0.92 0.96 0.86

(1.30) (1.36) (1.31) (1.18) (1.15)

June 0.82 0.95 0.94 0.92 0.83

(1.30) (1.36) (1.31) (1.18) (1.15)

July 0.80 0.92 0.90 1.06 0.92

(1.30) (1.37) (1.31) (1.18) (1.23)

August 0.66 0.75 0.92 1.15 1.00

(1.30) (1.37) (1.32) (1.18) (1.23)

September 0.78 0.76 0.74 1.02 0.85

(1.30) (1.37) (1.32) (1.18) (1.23)

October 0.72 0.92 0.65 1.24 0.98

(1.30) (1.37) (1.32) (1.28) (1.23)

November 0.71 0.81 0.85 1.01 0.95

(1.30) (1.37) (1.34) (1.28) (1.23)

December 0.72 0.99 0.97 0.97 0.78

(1.30) (1.37) (1.34) (1.28) (1.23)

January 0.79 0.90 0.80 1.03 0.89

(1.30) (1.37) (1.34) (1.30) (1.22)

February 0.63 0.75 0.82 0.73 0.93

(1.30) (1.37) (1.34) (1.30) (1.22)

March 0.83 0.80 0.97 0.91 0.89

(1.30) (1.37) (1.34) (1.30) (1.22)

Total 9.22 10.38 10.45 11.90 10.79

(15.60) (16.41) (15.90) (14.82) (14.49)

Figures in brackets pertain to FSA Quantity/Linkage

There may be small difference in figures indicated elsewhere due to rounding off.

53rd Annual Report

51

ANNEXURE-IV

PROCUREMENT AND CONSUMPTION OF FUEL INCLUDING

FOR CAPTIVE POWER PLANTS (1992-93 to 2013-14)

(Mn.t.)

Year

Procurement

Total

Procurement

Actual Fuel

Consumption Receipt

against

Linkage

E-auction/

Open

Market

Imported

Coal

Lignite, Pet

Coke and

other Fuel

VIII Plan

1992-93 10.49 1.27 0.09 0.80 12.65 12.05

1993-94 10.34 0.86 0.12 0.70 12.02 12.78

1994-95 10.28 2.32 0.71 0.80 14.11 13.29

1995-96 10.06 2.80 1.30 0.80 14.96 14.25

1996-97 10.45 2.48 1.65 0.70 15.28 15.03

IX Plan

1997-98 9.61 1.62 3.52 0.42 15.17 14.98

1998-99 8.24 0.77 4.66 0.20 13.87 13.98

1999-00 9.01 0.63 6.04 0.05 15.73 15.42

2000-01 9.74 0.79 4.40 0.42 15.35 15.37

2001-02 11.09 0.87 3.37 0.96 16.29 15.81

X Plan

2002-03 12.35 0.77 3.66 1.09 17.87 17.83

2003-04 13.35 1.03 3.18 1.52 19.08 18.85

2004-05 14.84 1.27 3.63 2.63 22.37 21.21

2005-06 14.81 1.55 3.40 2.98 22.74 22.39

2006-07 14.43 2.94 4.96 2.92 25.25 25.02

XI Plan

2007-08 14.56 5.00 6.08 3.20 28.84 27.33

2008-09 14.29 6.17 6.97 2.77 30.20 29.57

2009-10 10.79 4.36 6.95 4.15 26.25 25.80

2010-11 11.90 4.92 8.48 3.54 28.84 28.06

2011-12 10.45 4.50 9.40 5.46 29.80 28.30

XII Plan

2012-13 10.38 3.93 9.27 6.24 29.82 27.37

2013-14 9.22 3.92 9.08 7.71 29.93 28.85

52

ANNEXURE-V

CEMENT/CLINKER LOADING - RAILWAY ZONE-WISE

(Mn.t.)

Zones 2013-14 2012-13 2011-12

Central 6.62 7.07 7.75

Eastern 2.48 2.39 2.49

East Central 2.61 2.44 2.21

East Coast 1.00 1.28 1.10

Northern 2.35 2.71 2.99

North Central 2.32 1.68 1.68

North Eastern 0.03 0.02 0.03

Northeast Frontier 0.33 0.06 0.12

North Western 6.75 6.47 8.09

Southern 3.22 2.83 3.98

South Central 28.62 27.63 24.71

South Eastern 8.85 8.51 7.86

South East Central 14.62 13.72 14.42

South Western 0.56 0.81 0.52

Western 7.99 8.16 8.78

West Central 21.46 20.07 20.84

Total 109.81 105.85 107.57

53rd Annual Report

53

ANNEXURE-VI

LIST OF WORKSHOPS/SEMINARS ON CEMENT CONCRETE TECHNOLOGY

PARTICIPATED/SPONSORED BY CMA

� Workshop on “Construction of Cement Concrete Roads - Dos and Don’ts” organized by Indian Concrete

Institute on 23rd

September 2013 at IIT Chennai was supported by CMA by providing publications for

delegates.

� A seminar on “Business Opportunities Related to Industrial Corridors in India” was jointly organized by

Belgian Embassy and PHD Chamber for High Level delegation of Belgian companies and their government

representatives on 25th

November 2013 in New Delhi. CMA officials attended the seminar. CMA suggested

to the President, PHD Chamber vide letter dated 25th

November 2013 to request the Belgian Delegates to

strongly advocate to the Indian Government for adoption of Cement Concrete Roads in place of Bitumen

Roads, in view of the success achieved in their country in this regard.

� Two-day conference on “Infrastructure and Sustainability - A Fresh Approach” was held on the occasion of

Concrete Show India by UBM India Pvt. Ltd. on 13-15 March 2014 at Mumbai. Presentations were made by

the experts from India and abroad. CMA put up a stall in the exhibition in Concrete Show depicting broadly

the growth achieved by the Cement Industry and its major concerns hindering sustainable growth; its

initiatives towards Quality, Environmental Health and Safety, Corporate Social responsibility; CMA’s

initiatives for encouraging adoption of Cement Concrete Roads, Advantages of Cement Concrete Roads/

White-Topping etc. More than 1000 participants visited CMA stall.

� Seminar on “Concrete Roads and White-Topping” was organized by Indian Concrete Institute on 24th

March

2014 at Bhopal. Madhya Pradesh Public Works Department, M.P Rural Engineering Services Department and

Madhya Pradesh Rural Road Development Authority (MPRRDA) were the supporting organizations. The

seminar was supported by CMA by providing its publications to the delegates.

� Indian Concrete Institute & UltraTech Cement Ltd. organized a Technical Lecture for Engineers of Chennai

Municipal Corporation on “Quality Control and Maintenance of Cement Concrete Roads” on 25th

July 2014

at Chennai. CMA supported the event by providing its publication “White-Topping of Roads-Concrete

Overlay Technology” for the participants.

****

54

ANNEXURE-VII

LIST OF PRESENTATIONS/MEETINGS REGARDING

CEMENT CONCRETE ROADS AND WHITE-TOPPING

� On behalf of Cement Industry and CMA Dr. L.R. Kadiyali, a renowned Highway Expert had an opportunity in

October 2013 to present the case for adoption of Cement Concrete Road to the Hon’ble Minister of Road

Transport & Highways at Indian Roads Congress, New Delhi. Hon’ble Minister was impressed and indicated

that the Ministry will favour Cement Concrete Roads.

� During the discussion at the Associations’ Council meeting of CII suggestions were invited as to how to bring

the economy back on rail; reduce the current deficit; improve the foreign exchange etc. CMA responded to

the President of CII, Shri Ajay S Shriram by D.O. letter dated 4th

October 2013 that construction of Cement

Concrete Roads will obviate the use of petroleum crude resulting in saving of foreign exchange required to

import crude oil. CMA requested him to also take up the Recommendations of 95th Report of Department

Related Parliamentary Standing Committee (DRPSC) on Commerce and those in the Report on Working

Group on Cement Industry for the 12th

Five Years plan 2012-17 for construction of Cement Concrete Roads,

with the Sr. officials of concerned Ministry/Departments in centre and states.

� During an interaction of Shri H.M. Bangur, Managing Director, Shree Cement Ltd. with Shri A.K. Sinha,

Advisor, Uttar Pradesh State Highway Authority (UPSHA) at New Delhi, Shri A.K. Sinha evinced interest in

Cement Concrete Roads in UP. To take the matter forward, CMA has arranged a Presentation on “Cost

effective solutions for the Road Pavements for UP” on 27th

November 2013 at Lucknow.

The presentation was made by Dr. L. R. Kadiyali, a renowned Highway Expert wherein Shri Mukul Singhal,

IAS, Chief Executive Officer, UP Expressway Industrial Development Authority (UPEIDA)/ UP State Highway

Authority (UPSHA) and his team of Engineers were present. Engineers from PWD and Lucknow Development

Authority also participated in the Presentation.

� Construction of 48 Km stretches of Cement Concrete Road was sanctioned under Indo-Nepal Border Road

Project in the three district of Lakhimpur kheri, Siddharth Nagar and Maharaj Ganj in UP. On the request of

Chief-Engineer-in-Charge, Indo-Nepal Border Road Project, Public works Department, Lucknow, CMA

arranged a presentation on “Design, Construction Methodology and Quality Control aspects of Cement

Concrete Roads” on 21st

December 2013 at Lucknow for the Engineers involved in the construction of this

Project.

Shri Binod Kumar, Scientist, CRRI, New Delhi made a detailed Presentation on the above subject on 21st

December 2013. Engineer-in-Chief and Chief-Engineer-in-Charge of the Project were highly impressed by the

presentation.

53rd Annual Report

55

� CMA organized a Meeting and Presentations for the Engineers of CCL and CMPDIL on 23rd

January 2014 at

CMPDIL Ranchi.

Dr L.R. Kadiyali, Shri A.K. Jain made Presentations on “Advantages & Cost Economics of Concrete Vs

Bitumen Pavements” and “Methodology of construction of Cement Concrete Roads/White-Topping”

respectively. Shri Ram Avtar, Consultant, CMA explained the application of a software developed by Dr L.R.

Kadiyali for CMA to find design and cost comparison of Concrete and Bituminous Pavements. Sr. Engineer

from both the organizations participated in the Presentations and detailed interactive session. CMA team

also met Shri D.K. Ghose, Director Technical/ Engineering, CMPDIL, and Shri A.K. Debnath, CMD, CMPDIL and

apprised them that for Coalfield area roads on which mostly heavy axle load traffic ply Cement Concrete

Roads are most economical option. The Director & CMD of CMPDIL advised their Engineers to prepare

comparative cost analysis for their future projects to enable the organization to take decision on the option

between Bituminous and Concrete Pavements.

� CMA organized a meeting and Presentation for the Civil Engineers/Staff Officers (Civil) of WCL on 20th

March

2014 at Nagpur. Dr L. R. Kadiyali & Shri A.K. Jain made Presentations on “Advantage & Cost Economics of

Concrete vs Bitumen Pavements” and “Methodology of construction of Cement Concrete Roads/ White-

Topping” respectively. Shri Lalit Kumar Jain, Consulting Structural Engineer also made a presentation about

the ongoing projects on Cement Concrete Roads in Nagpur region. He discussed the problems encountered

due to black cotton soil prevalent in the region and the solutions to overcome this problem. Civil Engineers/

staff officers actively participated in the presentation and detailed interactive session.

*****

56

ANNEXURE-VIII

LIST OF CMA PUBLICATIONS/PERIODICALS

Periodicals

� Cement, Energy and Environment – Quarterly Journal

� Cement Journal – Quarterly

� Cement News Digest – Weekly

� CMA Directory (Annual)

� Indian Cement Industry – Statistics (Annual)

� Basic Data on Indian Cement Industry (Annual)

Cement Concrete Roads

� Cement Concrete Roads For Rural India- A Must (Dec.2013)

� 165 km Yamuna Expressway in Cement Concrete through PPP Mode in Uttar Pradesh (Nov.2012)

� White-Topping of Roads—Concrete Overlay Technology (Nov. 2011)

� Cement Concrete Road Construction - DOs and DONTs (May.2011)

� City Concrete Roads …. (Modified and Enlarged) (Jun.2010)

� Cement Concrete Roads – A Long Lasting Gift to Nation (Jun.2010)

� Handbook on Cement Concrete Roads (Mar.2010)

� Four Laning of Satara-Kolhapur-Kagal, NH4 (Revised and Updated) (Mar.2007)

� Cement Concrete Pavements for City Roads, Bus Stands & Depots (Mar.2003)

� India's First Access Controlled Expressway - Mumbai-Pune (Oct.2001)

� Handbook of Ready Mixed Concrete (Jul.2001)

� Fuel Savings on Cement Concrete Pavements (2000)

Buildings

� Construction, Maintenance and Upkeep of Concrete Buildings (Oct.2009)

� Building Lasting Homes (Oct.2008)

� Cement in Service of The Nation (Jan.2006)

Canal Lining

� Cement Concrete Canal Lining (Feb.2009)

� Handbook on Cement Concrete Canal Lining (Jun.1998)

Consumer Guide

� Cement for Construction – A Consumer Guide (Jan.2008)

(In Different Languages – English, Hindi, Tamil, Telugu, Malayalam,

Bengali, Marathi, Kannada, Punjabi and Gujarati)

*****

Stopped publishing after Competition

Commission of India’s Order of 2012

53rd Annual Report

57

MEMBER COMPANIES OF CEMENT MANUFACTURERS’ ASSOCIATION

1. Anjani Portland Cement Ltd

Anjani Cement Centre

Plot No. 7 & 8

D.No.8-2-248/1/7, Nagarjuna Hills

Main Road, Punjagutta

Hyderabad - 500 082 (A.P.)

2. Bagalkot Cement & Inds.Ltd

Stadium House, Block No 1, 6th floor,

Veer Nariman Road, Churchgate.

Mumbai - 400 020

3. Binani Cement Ltd

601, Axis Mall, 6th Floor, Block – C,

Plot No.CF9, Action Area – 1

New Town, Rajarhat

Kolkata - 700 156

4. Birla Corporation Ltd

(Cement Division)

Birla Building

9/1, R.N. Mukherjee Road,

Kolkata - 700 001

5. Cement Corporation of India Ltd

(A Govt. of India Enterprise)

Scope Complex, Core No. 5

7, Lodhi Road,

New Delhi - 110 003

6. Cement Manufacturing Co.Ltd

Village Lumshnong, P.S. Khliehriat

Distt. Jaintia Hills,

Meghalaya – 793 200

7. Century Textiles & Industries Ltd

Century Cement

Maihar Cement

Manikgarh Cement

Century Bhawan

Dr. Annie Besant Road,

Mumbai - 400 025

8. Chettinad Cement Corporation Ltd

Rani Seethai Hall Building

Post Box No.748,

603, Anna Salai,

Chennai - 600 006

9. Dalmia Cement (Bharat) Ltd

Dalmiapuram - 621 651

Distt. Tiruchirapalli,

Tamil Nadu

10. Gujarat Sidhee Cement Ltd

Siddhigram - 362 276

Off. Veraval Kodinar Highway

Taluka Veraval, Distt. Junagarh,

Gujarat

11. Heidelberg Cement India Ltd

9th Floor, Tower-C, Infinity Towers,

DLF Cyber City, Phase-II

Gurgaon, Haryana 122002

12. The India Cements Ltd

“Dhun Building”

827, Anna Salai,

Chennai - 600 002

13. J.K. Cement Ltd

Kamla Tower

Kanpur - 208 001

Uttar Pradesh

14. Jaiprakash Associates Ltd

(Cement Division)

Sector – 128, Noida 201 304, (U.P.)

15. Jammu & Kashmir Cements Ltd

(A Govt. of J&K Undertaking)

Nawa-I-Subh Complex,

Zero Bridge, P.Box No. 149

Srinagar - 190 001

16. JK Lakshmi Cement Ltd

Jaykaypuram – 307 019

Distt. Sirohi,

Rajasthan

17. The K.C.P. Ltd

Ramakrishna Buildings

2, Dr. P.V. Cherian Crescent Egmore, Chennai - 600 008

18. Kalyanpur Cements Ltd

2 & 3, Dr. Rajendra Prasad Sarani

Kolkata - 700 001

19. Kesoram Industries Ltd

Kesoram Cement

Vasavadatta Cement

9/1, R.N. Mukherjee Road,

Kolkata - 700 001

20. Khyber Industries (P) Ltd

Khayam Road, Nowpora,

Srinagar - 190 001

Jammu & Kashmir

58

21. Lafarge India Pvt. Ltd

Crescenzo Building,

B-Wing, 10th Floor,

C-38 & C-39, G Block,

Bandra Kurla Complex,

Bandra (East),

Mumbai- 400 051

22. Malabar Cements Ltd

(A Govt. of Kerala Undertaking)

Walayar P.O.,

Palakkad Distt. - 678 624, Kerala

23. Mangalam Cement Ltd

Adityanagar, Morak - 326 520

Distt. Kota

(Rajasthan)

24. Mawmluh-Cherra Cements Ltd

(A Govt. of Meghalaya Undertaking)

Taxation Building, (Near Raj Bhawan)

Shillong - 793 001,

Meghalaya

25. Meghalaya Cement Ltd

Village Thangskari, P.O. Lumshnong,

Distt. Jaintia Hills,

Meghalaya - 793 200

26. My Home Industries Ltd

9th Floor, Block-3,

My Home Hub, Madhapur,

Hyderabad - 500 081

27. OCL India Ltd

Rajgangpur - 770 017

Distt. Sundergarh,

Odisha

28. Orient Cement Ltd

(Prop: Orient Paper & Inds. Ltd)

Bhubaneswar – 751 012,

Odisha

29. Panyam Cements & Mineral Inds Ltd

C-1, Industrial Estate,

Bommalasatram, Nandyal,

Kurnool Distt.,

Andhra Pradesh - 518 502

30. Penna Cement Inds.Ltd

Plot No.703, Sriniketan Colony,

Road No.3, Banjara Hills,

Hyderabad - 500 034

31. Prism Cement Ltd

305, Laxmi Nivas Apartments

Ameerpet,

Hyderabad - 500 016 (A.P.)

32. Rain Cement Ltd

(Formerly Rain Commodities Ltd)

Rain Centre, 34, Srinagar Colony,

Hyderabad –500 073 (A.P.)

33. The Ramco Cements Limited

(Formerly Madras Cements Ltd)

Ramamandiram, Virudhunagar Distt.

Rajapalaiyam - 626 117,

Tamil Nadu

34. Reliance Cement Company Pvt. Ltd.,

H. Block, 1st Floor,

Dhirubhai Ambani Knowledge City,

Navi Mumbai – 400 710.

35. Sanghi Inds.Ltd

Sanghinagar–501 511

R.R.Dist.,

Andhra Pradesh.

36. Saurashtra Cement Ltd

Near Railway Station,

P.O. Ranavav - 360 560,

Gujarat

37. Shree Cement Ltd

Bangur Nagar, Post Box No.33,

Beawar - 305 901

(Rajasthan)

38. Shree Digvijay Cement Co.Ltd

(A Votorantim Group Company)

P.O. Digvijaygram – 361 140

Via Jamnagar, (Gujarat)

39. Shriram Cement Works

(A unit of DCM Shriram Ltd.)

6th Floor, Kanchenjunga Building,

18, Barakhamba Road,

New Delhi - 110 001

40. Tamil Nadu Cements Corp. Ltd

(A Govt. of Tamil Nadu Undertaking)

LLA Building, 2nd Floor,

735, Anna Salai,

Chennai - 600 002

41. UltraTech Cement Ltd

‘B’ Wing, Ahura Centre,

2nd Floor, Mahakali Caves Road

Andheri (E), Mumbai - 400 093

42. Zuari Cement Ltd

(Italcementi Group)

Krishna Nagar, Yerraguntla - 516 311

Kadapa Distt,

Andhra Pradesh

CEMENT MANUFACTURERS' ASSOCIATION

SECRETARIAT

Secretary General Shri N.A. Viswanathan

Acting Secretary Shri S.K. Dalmia

Joint Secretary Shri S.V. Joshi

Shri N.K. Pande

Sr. Dy. Secretary Shri Jainender Kumar

Shri H.K. Panchal

Shri Rakesh Gupta

EDP Manager Shri Piyuesh Aggarwal

Sr. Assistant Secretary Shri N.Y.R. Sampath Kumar

Assistant Secretary Shri N.S. Pawar

Shri C.S. Pant

Technical Officer Shri K.K. Roy Chowdhury

AUDITORS

Messrs K.S. Aiyar & Co.

Chartered Accountants

Corporate OfficeCorporate OfficeCorporate OfficeCorporate Office

CMA Tower, A-2E, Sector 24, Noida -201 301 (U.P.) Tel: 0120-2411955, 2411957, 2411958, 2411764, Fax: 0120-2411956 Email: cmand@cmaindia.org

Mumbai OfficeMumbai OfficeMumbai OfficeMumbai Office

Express Building, 1st Floor, Indian Merchants’ Chamber Marg, Churchgate, Mumbai - 400 020 Tel: 022 -22049691, 22851304, Fax: 022 -22040582 Email: cmabb@cmaindia.org, cmabb@bom3.vsnl.net.in

Hyderabad OfficeHyderabad OfficeHyderabad OfficeHyderabad Office

3rd Floor, 36th Square, Plot No.481, Road No.36, Jubilee Hills, Hyderabad 0- 500 034. Tel: 040-23553378 Email: cmahyd@cmaindia.org

Registered OfficeRegistered OfficeRegistered OfficeRegistered Office

Vishnu Kiran Chamber, 2142-47, Gurudwara Road, Karol Bagh, New Delhi – 110 005 Tel: 011- 28753206, 28751307, Fax: 011-28758476

CEMENT MANUFACTURERS’ ASSOCIATIONCEMENT MANUFACTURERS’ ASSOCIATIONCEMENT MANUFACTURERS’ ASSOCIATIONCEMENT MANUFACTURERS’ ASSOCIATION (Website : www.cmaindia.org)