Mrs. Vinita Singhania, President, CMA

(From October 2009)

Past Presidents of Cement Manufacturers’ Association

Shri Dharamsey M. Khatau 1961 to 1964

Shri G.D. Somani 1965 to 1967

Shri V.H. Dalmia 1968 to 1969

Shri R.D. Shah 1970 to 1973

Shri P.K. Mistry 1974 to 1976

Shri A.K. Jain 1977 to 1978

Shri R.P. Nevatia 1979 to 1980

Shri S. Krishnaswamy 1981 to Aug’82

Shri V.L. Dutt Oct’82 to Oct’83

Shri J.R. Birla Nov’83 to Mar’87

Shri M.H. Dalmia Mar’87 to Jul’89

Shri M.N. Mehta Jul’89 to Jul’91

Shri N. Srinivasan Jul’91 to Aug’94

Shri M.C. Bagrodia Aug’94 to Sep’96

Shri N.S. Sekhsaria Sep’96 to Jun’98

Shri A.L. Kapur Jun’98 to Mar’99

Shri Y.H. Dalmia Mar’99 to Aug’99

Shri M. Karnani Aug’99 to Oct’00

Shri T.M.M. Nambiar Oct’00 to Oct’02

Shri B.L. Jain Oct’02 to Sep’04

Shri N. Srinivasan Sep’04 to Dec.06

Shri Manoj Gaur Dec’06 to Jul’07

Shri H.M. Bangur Jul’07 to Oct’09

INDIAN CEMENT INDUSTRY: SOME GIANT STRIDES

� Indian Cement Industry ranks the Second largest amongst cement producing countries in the World.

� Produces Cements following mandatory international standards and matches the World’s best in Quality.

� Added a Capacity of 37 mn.t. in 2009-10.

- Highest ever added in any single year.

� Set up Capacities abroad – West Asia, China.

� Average annual kiln capacity of +2860 tpd is the Second highest in the World after Japan (3370 tpd).

� Achieved World Class Energy Efficiency.

India’s

Best

World’s

Best

Electric Energy – kwh/t of Cement

63 65

Thermal Energy –KCal units/ kg. of Clinker

665

650

� Particulate Emission levels meet stringent International standards of 50 mg/Nm3.

- In some cases even lower : 15 – 20 mg/Nm3.

� The Cement Industry is Country’s largest consumer of hazardous wastes viz. Fly Ash and Blast Furnace Slag as part of its environmental concerns.

� As a part of Corporate Social Responsibility (CSR), the Cement Industry is intensely involved in environmental protection through creation of large expanses of social forestry, extensive water bodies, voluntary adoption of neighboring villages in providing free Water, Electricity and facilities for Education, Healthcare etc.

� The Industry is Capable of Scaling even greater heights of National Achievements for better and enlarged Service to the Society with support from the Government on following fronts :

o Availability of indigenous coal at rational price through traditional linkage

o Adequate and assured logistics support, particularly Railways, the economical mode for transport of Cement and other Inputs.

o Rationalization of Taxes and levies to make Indian Cement Industry more competitive both in Domestic and also in International markets.

CEMENT MANUFACTURERS' ASSOCIATION

PRESIDENT

Mrs. Vinita Singhania

VICE PRESIDENT

Shri M.A.M. R Muthiah

MEMBERS OF THE MANAGING COMMITTEE

Shri Sumit Banerjee

Shri J Datta Gupta

Shri Ramit Budhraja

Shri D.S. Ghai

Shri Ravinder Mohan (Upto Oct.09)

Shri J.C. Toshniwal

Shri S.N. Toshniwal

Shri Ajay Kapur

Shri Kamlesh Sharma

Shri Harsh V. Lodha

Shri B.R. Nahar

Shri Rajendra Chamaria

Shri Alok Patni

Shri Puneet Dalmia

Shri Saurabh Misra (Upto 31.3.2010)

Shri O.P. Puranmalka

Shri B.L. Kalwar

Shri T.S. Raghupathy

Shri R. Srinivasan

Shri Rakesh Singh

Ms. Rupa Gurunath

Shri Sunny Gaur

Shri R.G. Bagla

Shri S. Chouksey

Mr. Farooq Ahmad Wani /

Mr. Mushtaq Ahmad Malik

Shri Anant Prakash Sinha

Mrs. V.L. Indira Dutt

Shri K.C. Jain

Shri Uday Khanna

Shri Kamal Kishore

Shri P.S. Bakshi

Shri Bhagwat Pandey

Shri Alok Sanghi

Shri M.S. Gilotra

Shri M.K. Singhi

Shri Aditya Shriram

Dr. M. Rajaram, IAS/

Shri G.A. Rajkumar, IAS

Shri Ratan K. Shah

Shri K.C. Birla

Shri Krishna Srivastava

PERMANENT INVITEES

Shri H.M. Bangur

Shri Manoj Gaur

Shri N. Srinivasan

Shri B.L. Jain

Shri Y.H.Dalmia

Shri M.N. Mehta

Shri M.H. Dalmia

Shri V.L. Dutt

SECRETARY GENERAL

Shri N.A. Viswanathan

i

FOREWORD

The 49th Annual Report of CMA for the year 2009-10 is in your hands. The

Report reviews various aspects of performance of Cement Industry during the period

under Report.

India is one of the few countries, which could survive global recession with minor

bruises and has demonstrated its resilience with GDP growth registered at 7.5%

from the low of 6.7% in the previous year.

Industrial production growth, which touched a low of 2.8% in 2008-09 from 8.5%

recorded in 2007-08 recovered to post a double-digit growth of 10.4% in the year

2009-10. The manufacturing sector too witnessed a double-digit growth of 10.3%,

more than 3-times the growth recorded in 2008-09 at 2.7%. However, Agriculture

sector recorded a dismal growth of 0.2% during the year 2009-10.

The Cement Industry, which exhibited resilience in the face of the global financial

meltdown by sustaining a near 8% growth (7.9%), during 2008-09, jumped up to

record a double-digit growth of 12.7%, in 2009-10.

A notable feature which bears highlighting is the addition of a capacity of 37 mn.t in

the Cement Industry during the year 2009-10, which is the highest capacity ever

added in any single year so far.

This high growth performance of the Cement Industry during 2009-10 was largely

helped by the increased construction activity in infrastructure catalysed by stimulus

packages provided by the Government.

The Union Budget 2010-11 has given further thrust to infrastructure development

with increased financial allocation to various programmes including construction of

roads, urban and rural development projects, mass housing etc. The

Commonwealth Games (CWG), 2010 have also generated additional demand for

Cement for development of Infrastructure like Stadia for Games, Housing for large

number of Athletes, Coaches and others, Concrete Roads and Metro Rail for

connectivity of various locations to give a facelift to the National Capital Region.

These measures should boost the demand for Cement and the Cement Industry is

expected to sustain a 12% growth during FY11 and the next few years.

ii

The Working Group on Cement Industry for the XI Plan has projected cement

production at 269 mn.t and the capacity needed at 298 mn.t by the terminal year of

the Plan i.e. 2011-12. The Cement Industry, which has added a capacity of 88.7

mn.t during the first three years (2007-10), is optimistic that it would reach the

target of 298 mn.t capacity by 2011-12.

One of the main concerns of the Cement Industry is availability of required

quantities of coal, the main fuel. During the year 2009-10, CMA’s delegation had

meetings with and also made representations to Secretary and Additional Secretary

of Ministry of Coal (MOC), Chairman, Standing Linkage Committee (SLC), Chairman

and Director (Mktg.) of Coal India Ltd, Secretary and Director, Deptt. of Industrial

Policy and Promotion, Ministry of Commerce and Industry and Secretary

(Coordination), Cabinet Secretariat drawing their timely attention to the problems of

Cement Industry and seeking their cooperation and guidance in finding solutions.

Concerned at the deterioration in the quality of coal being supplied to Cement

Industry, CMA conducted an internal survey and found that coal supplied in most of

the rakes contain one to four grades below the billed grade. Coal companies have

been requested to (i) consider re-grading of coal to appropriate levels, (ii) have a

suitable mechanism to compensate for the monetary loss occasioned due to supply of

lower grade coal against billed grade and (iii) ensure in future that coal supplies are

subjected to joint sampling if desired so by the buyer, so that the quality of coal

supplied is determined for each consignment. It is hoped that coal companies will

take appropriate action.

Cement being a high-volume and low-priced commodity, Railways is the ideal mode

of transportation for Cement. CMA continued to draw attention of the Senior Officers

of the Railways, including its Chairman and Hon’ble Minister of Railways to the

Rail-related problems being confronted by the cement plants and also suggested

possible remedial measures to overcome them. A number of representations were

made to Senior Officials of Railways, Secretary and Joint Secretary, Deptt. of

Industrial Policy and Promotion, Ministry of Commerce and Industry as also

Secretary (Coordination), Cabinet Secretariat.

CMA continued its efforts to promote greater and more widespread use of cement

during 2009-10. Presentations on advantages of Cement Concrete Roads were

made to the concerned officials of State and Central Government, Municipal

Corporations, Heads of Development Corporations, PWD Engineers, etc. in various

States of the country.

iii

Some of the notable Presentations include those made to Hon’ble Chief Minister of

Delhi, Smt. Sheila Dikshit, Director General (Road), Ministry of Road Transport and

Highways (MORTH), Principal Secretary, Deptt. of Transport and Building,

Hyderabad, Vice-Chairman, Kanpur Development Authority and President,

Maharashtra Economic Development Council (MEDC) and Seminar on “Sustainable

Cost-Effective Options for Road Pavements” and “White Topping of Concrete

Roads” was organized in association with Indian Concrete Institute, Hyderabd and

UltraTech Cement Ltd., for Chief Engineers and other Stakeholders.

Your Managing Committee is happy to report that the promotional efforts have borne

fruits and the Government of Rajasthan have issued instructions that majority of

Roads in the State should be constructed in Cement Concrete. State Government

construction agency of Karnataka also issued instructions that most of the Roads

built by the agency would be in Cement Concrete. Government of NCT of Delhi

have decided to construct around 200 km. of Roads in Concrete. Government of

U.P. have sanctioned construction of internal roads in Cement Concrete and the KC

drains in 2195 villages and allocated Rs. 850 Crores for the same.

Even under the PMGSY, Karnataka Government has sanctioned 176.49 km. of

Cement Concrete Roads. The work on these is in progress in the Districts of

Hassan, Shimoga, Haveri and Belgaum.

During the year, CMA developed a Software for effectively comparing the cost of

Cement Concrete Roads and Bitumen Roads over a wide spectrum of criteria

covering various locally available inputs and their costs at different locations. The

Software has been circulated to all our Members and Stakeholders who evinced

interest in the Software. The exercise was undertaken to counter the myth that

Concrete Roads are always costlier in comparison to the alternative of Bitumen

Roads. It is hoped that this Software should help Construction Agencies to work out

quickly comparative cost advantages and encourage construction of Cement Concrete

Roads.

One of the notable developments in the Cement Industry during the year, related to

the achievement made through modernization and expansion which resulted in

operational efficiency, process control and energy conservation in the new plants,

with adaptability to use a wider range of alternative or substitute raw materials, and

fuels including those derived from a variety of Industrial Wastes.

Successful trials of using Waste Derived Fuels (WDF) by Member Companies in

collaboration with State Pollution Control Boards, CPCB and advanced technological

iv

institutions like GTZ German Technology Corporation, provided encouraging results

which led to MoEF recommending Cement Kiln as the most environment-friendly

mechanism for recycling four types of hazardous combustibles, namely, Shredded

Tyres, Paint Sludge, TDI Tar Waste, and ETP Sludge.

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

been highly supportive of our Industry for which I am grateful to Hon’ble Minister,

Secretary, Joint Secretary, Director and Under Secretary. I am equally indebted to

Secretary (Coal), Addl. Secretary (Coal) and Chairman, SLC, Joint Secretary,

Ministry of Coal; Chairman, Railway Board, Member Traffic, Additional Member

(T), Additional Member (C), Executive Director Traffic Transportation (S), Executive

Director Traffic Transportation (R), Ministry of Railways; 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, DGFT, for their cooperation.

I also wish to thank Senior Members of the Managing Committee and various other

CMA Committees for their valuable advice.

The Officials and Staff of CMA under the supervision and guidance of Secretary

General, Shri N.A. Viswanathan turned in yet another year of quality work with

utmost dedication and I would like to place on record my appreciation of the same. I

am sure that the Secretariat would continue to work with same zeal supporting the

Industry.

New Delhi (Vinita Singhania)

August 2010 President

1

CEMENT MANUFACTURERS' ASSOCIATION

49th ANNUAL REPORT 2009-10

(Under Rule 49 - Rules & Regulations of CMA)

The Managing Committee is happy to

present its 49th Annual Report for the

year 2009-10.

THE YEAR AT A GLANCE

Economy

The Indian Economy, which witnessed

a slowdown during the year 2008-09

with GDP dropping to 6.7% due to

global financial meltdown that

affected the growth of several

countries severely, moved on the

recovery path and clocked 7.5%

during the year 2009-10. GDP growth

is expected to return next year to 9%,

a level that was sustained during the

three years 2005-08.

Industrial production recorded an

appreciable growth of 10.4% during

2009-10, more than three-and-a-half

times the growth registered in the

previous year at 2.8%.

Manufacturing sector also showed a

double-digit growth of 10.3%, more

than three times that recorded in

2008-09 at 2.7%.

Agriculture sector, which showed a

dismal growth of 0.2% during 2009-

10, is likely to fare better in 2010-11

due to the expected better monsoon

this season.

Construction sector posted a growth

of 8.6% in 2009-10 as against 8.8%

of the previous year.

On the External Trade, there has been

a negative growth, both in Exports

and Imports during the year 2009-10

compared to the previous year. While

Exports dropped by 3.8%, Imports fell

by 7.1%.

Foreign Exchange Reserves, which

showed a negative growth of 19.3%

in 2008-09 at US$ 241.4 billion

reversed the trend to record a positive

growth of 4.7% to reach US$ 254.7

billion in 2009-10.

Cement Industry

The Cement Industry that withstood

the global financial meltdown and

recorded a 7.9% growth during the

year 2008-09, a drop of just 0.2%

from the previous year’s growth of

8.1%, when the economic growth

plunged to 6.7% against a sustained

growth of 9% during the previous

three years, jumped up to record a

growth of 12.7% in 2009-10, on the

2

back of increased infrastructure

projects and other construction

activities supported by the Stimulus

Packages provided by the

Government. Cement consumption,

in fact, recorded a growth of 13.1% in

2009-10.

Outlook: Cement Industry

The main drivers of cement demand

are development of infrastructure like,

Power Houses, Roads, Ports, Airports,

and Mass Housing, both urban and

rural.

The Union Budget 2010-11 presented

by Hon’ble Finance Minister Shri

Pranab Mukherjee on 26th February

2010, with its emphasis on inclusive

growth, has focussed on infrastructure

development and pronounced several

proposals to facilitate such growth.

Some of the proposals of the Budget,

which will have a bearing on the

Cement Industry are cited below:

� Rs 1,73,552 crore provided for

infrastructure development, which

accounts for over 46 per cent of

the total plan allocation.

� Allocation for road transport

increased by over 13 per cent from

Rs. 17,520 crore to Rs 19,894

crore.

� Plan allocation for Power Sector

excluding RGGVY doubled from

Rs.2230 crore in 2009-10 to

Rs.5,130 crore in 2010-11.

� Rs. 66,100 crore provided for

Rural Development.

� An amount of Rs.48,000 crore

allocated for rural infrastructure

programmes under Bharat Nirman.

� Unit cost under Indira Awas Yojana

increased to Rs.45,000 in the plain

areas and to Rs.48,500 in the hilly

areas. Allocation for this Scheme

increased to Rs.10,000 crore.

� Allocation for Urban Development

increased by more than 75 per

cent from Rs.3,060 crore to

Rs.5,400 crore in 2010-11.

� Allocation for Housing and Urban

Poverty Alleviation raised from

Rs.850 crore to Rs.1,000 crore in

2010-11.

� Scheme of one per cent interest

subvention on housing loan upto

Rs.10 lakh, where the cost of the

house does not exceed Rs.20 lakh

- announced in the last Budget -

extended up to March 31, 2011

and Rs.700 crore provided for this

scheme for the year 2010-11.

� Rs.1,270 crore allocated for Rajiv

Awas Yojana as compared to

Rs.150 crore last year.

49th Annual Report

3

Hon’ble Minister for Road Transport

and Highways has been continuously

reviewing construction of highways,

having set a target of 20 km. per day.

Though the achievement against this

target has been low at around 7 km.

per day, the thrust has given further

momentum to increase the speed of

construction of highways.

The ensuing Commonwealth Games

(CWG) in October 2010 have

triggered enhanced pace in overall

development of the National Capital

Region (NCR) and Hon’ble Chief

Minister of Delhi has assured

construction of 200 km. of concrete

roads in Delhi. The Delhi Metro Rail

Corporation speeded up construction

of Metro Rail lines to provide

connectivity in Delhi and its

surroundings to facilitate smoother

and faster movement of people.

CMA has also been promoting

concrete road construction by

organizing meetings and

presentations with Municipal

Corporations and other concerned

Government agencies in different

States.

Further, the Real Estate growth has

picked up and housing projects are

progressing not only in major Metros

but also in the next Tier-II cities. In

fact, realizing that many of the

housing projects by prominent

builders are out of reach for many a

working class aspirant, thus resulting

in a large percentage of houses

remaining unoccupied, TATAs have

come out with Special Schemes, to

provide housing at affordable

economic prices in Mumbai city. Such

schemes are likely to be emulated in

other Metros and Tier-II cities also.

The thrust being given by the

Government for the development of

infrastructure, which lags very much

when compared with even developing

countries like Malaysia, and the focus

on inclusive growth by providing

supportive schemes for rural

economic development, should

certainly spur cement demand and

the Cement Industry is expected to

grow by more than 12% during the

next few years. As such the growth in

2009-10 has been 12.7%.

In fact, with the Government aiming

at an economic growth of around 10%

beyond the XII Plan period, Cement

Industry is expected to sustain even a

higher growth of 14 – 15%.

4

PERFORMANCE HIGHLIGHTS – 2009-10* (Excluding Mini and White Cement Plants)

AT A GLANCE

• Capacity at the end of Mar'10 (Mn.t)

(Previous year 219.51 Mn.t)

: 215.78

- Addition in 2009-10 (Mn.t) : 36.98

- Growth, % ($) : 20.68

• Cement Production (Mn.t)

(Previous year 181.61 Mn.t)

: 160.74

- Highest ever in a month (Mar'10) (Mn.t) : 15.96

- Growth, % ($) : 12.68

Clinker Production (Mn.t) (Previous year 138.78 Mn.t)

: 128.28

• Capacity Utilization (%)

(Previous year 88%)

: 84

• Stock at the end of Mar'10

- Cement (Mn.t)

(Previous year 1.09 Mn.t) : 1.29

- Clinker (Mn.t)

(Previous year 5.48 Mn.t) : 6.29

- Highest Clinker Stock in Nov.09 (Mn.t) : 7.76

• Exports

- Cement (Mn.t)

(Previous year 3.20 Mn.t)

: 1.60

- Clinker (Mn.t)

(Previous year 2.90 Mn.t)

: 3.14

• Consumption (Domestic Despatches)

(Previous year 177.98 Mn.t)

: 158.25

• Per Capita Consumption (2009) (kg.) : 136

($) – Compared to corresponding data in the previous year.

Mn.t - Million Tonnes

* Refers to existing Members of CMA and excludes data of two companies that have discontinued

their Membership with CMA during 2009-10.

49th Annual Report

5

48th Annual Session Of CMA

21st October 2009

Shri Jyotiraditya Scindia, Hon’ble Minister of State for Commerce and Industry addressing the gathering at the Annual Session. Seated on dais (L to R) S/Shri N.A. Viswathan, Secretary General, CMA, H.M. Bangur, President, CMA and Mrs. Vinita Singhania, Vice President, CMA.

Shri H.M. Bangur, President, CMA delivering Welcome Address. Seated on dais (L to R) S/Shri N.A. Viswathan, Secretary General, CMA, Jyotiraditya Scindia, Hon’ble Minister of State for Commerce and Industry, and Mrs. Vinita Singhania, Vice President, CMA.

Sectional View of participants at the Annual Session.

6

48th Annual Session Of CMA

21st October 2009

Shri H.M. Bangur, President, CMA presenting Memento to Chief Guest, Shri Jyotiraditya Scindia, Hon’ble Minister of State for Commerce and Industry.

Mrs. Vinita Singhania, Vice President, CMA showing photo gallery on Indian Cement Industry to Shri Jyotiraditya Scindia, Hon’ble Minister of State for Commerce and Industry.

Shri Jyotiraditya Scindia, Hon’ble Minister of State for Commerce and Industry releasing a book “Construction, Maintenance and Upkeep Of Concrete Buildings” on the occasion.

49th Annual Report

7

Addition of Capacity

A capacity of 36.98 mn.t has been

added during the year 2009-10, the

Third Year of the XI Five Year Plan. Of

this, around 54% (19.85 mn.t) was

through greenfield projects while

expansions accounted for 46% (17.13

mn.t).

Thus the capacity added during the

first three years of the XI Plan was

88.70 mn.t which forms 75% of the

projected capacity addition during the

XI Plan period (2007-12).

The Cement Industry is confident that

it would reach the capacity of 298

mn.t (Including Mini Plants) targetted

by the Working Group on Cement

Industry for the XI Plan by the end of

2011-12. Details of capacity added

during 2009-10 are given at

Annexure-I.

Cement and Clinker Production

Cement production by Members of

CMA during the year 2009-10 was

160.74 mn.t, against the production

of 142.65 mn.t of the same Members

in the last year 2008-09, posting a

growth of 12.7%. Company-wise/

Unit-wise production and performance

may be seen in Annexure-II.

Clinker production by Members of

CMA during the year 2009-10 was

128.28 mn.t, against the production

of 112.66 mn.t of the same Members

in 2008-09 indicating a growth of

13.9%.

Clinker stock in March 2010 was 6.29

mn.t against the previous year’s 5.48

mn.t.

Details of Performance of Cement

Industry during 2009-10 – Large

Plants, Large Plants and Mini and

White Plants and Region-wise

Capacity and Production are reflected

in Annexure-III.

MEETINGS OF THE MANAGING COMMITTEE AND HIGH POWER COMMITTEE

Three meetings of the Managing

Committee and nine meetings of the

High Power Committee were held

during 2009–10 to review the

industry’s problems and performance.

CMA COMMITTEES

To help address various emerging

issues and find solutions to the

problems affecting Cement Industry,

the following Committees continued to

render assistance to the Management

of the Association during the year

2009-10:

� CMA High Power Committee.

� CMA Committee on Coal Matters.

� CMA Technical Committee.

o Energy Task Force.

o Environmental Task Force.

8

� CMA Finance/ Legal Matters

Committee.

� CMA Committee on Railway

Matters.

Names of the Chairmen/Co-chairmen

of the above Committees are

indicated in Annexure-IV.

PRE-BUDGET MEMORANDUM

In our endeavour to highlight the

various measures required for the

healthy growth of the Industry so that

these could be considered in the

formulation of the Union Budget, CMA

submitted its Pre-Budget

Memorandum for the year 2010-11 to

the Hon’ble Finance Minister on 13th

November 2009, to help sustain a

healthy growth of the Cement

Industry. The proposals/suggestions

put forward in the Pre-Budget

Memorandum include –

� Uniform rate of Excise Duty on

Cement.

� An Abatement of 55%, as

recommended by NCAER in their

Report of 2005.

� Zero Import Duty on Coal, Pet

Coke, Gypsum &

other Inputs.

� Alignment of rate of VAT in line

with Steel.

� VAT or Cenvat Credit on Limestone

Royalty and Duty/Cess on

Indigenous Coal.

The Memorandum urged the

Government to consider our

submissions and help this core sector

Industry sustain 10% plus growth so

as to be able to meet the country’s

requirement of cement for developing

infrastructure, most needed for the

country’s economic development.

A delegation led by President, CMA,

Mrs. Vinita Singhania, also met the

Finance Ministry officials on

15.12.2009 and made a detailed

presentation on various aspects that

needed to be considered by the

Finance Ministry for sustained growth

of the core sector Cement Industry.

This was preceded by a detailed

Presentation and discussions with the

Secretary (Revenue) and other Senior

Officials on this issue a few days

earlier.

POST BUDGET MEMORANDUM

After the announcement of the Union

Budget on 26th February 2010, CMA

submitted a Post-Budget

Memorandum to the Hon’ble Finance

Minister on 12th March 2010.

While appreciating the Govt. for the

proposals addressed that would help

boost cement demand, particularly

49th Annual Report

9

those pertaining to the development

of infrastructure and coal availability,

the Memorandum also drew the

attention of the Govt. to the proposals

that would have an adverse impact on

the performance and growth of the

Cement Industry.

The Memorandum included the

following:

� Abatement of 55%, as

recommended by NCAER in their

Report of 2005, be given to the

Cement Industry on Excise Duty.

� Withdrawal of Excise Duty on

Petroleum Products.

� 3% Service Tax on Rail Freight,

which is already high, be not

levied.

� The levy of Clean Energy Cess on

Coal, Lignite and Peat may kindly

be withdrawn and that if,

however, this additional Cess is

imposed, it may kindly be made

MODVATable, since there is

already a heavy dosage of cess

burdens.

� The Service Tax proposed to be

levied on Housing Construction be

kindly withdrawn, shelter being

one of the most basic and priority

human needs.

INCREASE IN INPUT COSTS OF CEMENT

During the year 2009-10, there have

been increases in costs of inputs for

cement manufacture on items such as

wages, power, petroleum products,

royalty on limestone etc.

INFRASTRUCTURE

The core sector Cement Industry,

which provides the main

infrastructure for development of

infrastructure like roads, housing,

ports, airports, etc. depends on three

main inputs viz. Coal, Railways and

Power.

While coal is the main fuel and power

is essential for all the major

operations of the plant, Railways

provide the logistics support for

transportation of coal from distant

coalfields, gypsum and other inputs to

the cement factories and outward

movement of cement from factories to

distant markets/consumption centres.

All the three sectors, which provide

key infrastructure inputs for the

Cement Industry, are in the public

sector on which the Industry has no

control. In the following Sections the

performance of these three crucial

infrastructure supports to the Cement

Industry have been dealt with.

10

Coal

During the year 2009-10, CMA had

regular interaction with various Govt.

authorities on coal-related issues such

as, Fuel Supply Agreements (FSAs),

Sanction of Long-term linkages,

Problem in complying with the

specified Milestones as per LOA, E-

auction, Allocation of captive blocks,

Coal Imports, Quality of coal and

stepping up of coal supplies to

Cement Industry. CMA’s delegation

had Meetings with, as also made

representations to Secretary, Ministry

of Coal, Additional Secretary, Ministry

of Coal, (MOC), Secretary (DIPP),

Ministry of Commerce and Industry,

Director (DIPP), Chairman, Standing

Linkage Committee (SLC), Secretary

(Coordination), Cabinet Secretariat

and Chairman, Coal India Ltd (CIL)

and Director (Mktg.), CIL for getting

timely attention to the problems

of Cement Industry and finding

solutions.

The more important issues

relating to coal availability are :

Coal Receipt Against FSA/Linkage

Member Units of CMA received

only 10.78 mn.t of coal in 2009-

10 as against FSA/Linkage of

13.56 mn.t. Month-wise receipts

are given in Annexure-V.

Total Coal Procurement and Consumption

In addition to the coal received

against FSA/linkage, the Members, for

meeting their fuel requirement, also

procured imported coal, pet coke,

lignite and coal from open market for

use in the Kilns and Captive Power

Plants (CPPs). The total fuel

procurement by Member units was

26.24 mn.t in 2009-10 as against

23.39 mn.t in 2008-09.

Details of coal receipt against

FSA/linkage, open market purchase,

import of coal, lignite and pet coke

procurement and consumption of fuel

by Member units are given in

Annexure-VI. The trend of fuel

consumption and receipts are shown

in the graph.

14.25

10.06

15.03

10.45

14.98

9.61

13.98

8.24

15.42

9.01

15.37

9.74

15.81

11.09

17.83

12.35

18.85

13.35

21.21

14.84

22.39

14.81

25.02

14.43

27.33

14.56

29.57

14.29

25.80

10.78

0

5

10

15

20

25

30

35

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

Actual Fuel Consumption

Receipt against Linkage

Year

Mn

.t.

The drop in 2009-10 is due to discontinuation of Membership by two cement companies, whose data is not included.

49th Annual Report

11

The total fuel consumption, by

Member units, during the year 2009-

10 was 25.80 mn.t [18.90 mn.t in Kiln

and 6.90 mn.t in CPPs].

It will be observed that during the

year 2009-10, while the coal supply

through FSA/Linkage was only 10.78

mn.t, the total fuel consumption of

the Member units was 25.80 mn.t,

leaving a gap of 15.02 mn.t between

the actual requirement and supply. In

percentage terms, the linked coal

supply was only 41% of the total fuel

consumption during the year

2009-10.

Coal Imports

The coal imported by Member units

was 6.95 mn.t during 2009-10. The

trend of coal imports is shown in the

graph. The rate of import duty,

continues at 5% since 2006-07.

Pet Coke

The main source of supply of

pet coke is presently refineries

at Jamnagar [Reliance

Industries Limited (RIL)] and

Panipat [Indian Oil Corporation

(IOC)]. Some quantities of Pet

coke are also being imported

from US Gulf. Duty on

imported pet coke, however, remains

at 5%.

Member units consumed 3.76 mn.t of

pet coke in 2009-10.

Lignite

During the year under review,

marginal quantity (0.13 mn.t) of

Lignite was used as fuel by the

Member cement companies in

Southern and Western Regions. Some

quantities of Lignite are likely to be

used in future too.

Beneficiation/Blending of Coal

With the passage of time, the overall

quality of available coal has been

deteriorating. To counter this

problem, there is a need to

beneficiate the coal to upgrade the

quality for using in the kilns. Some

cement units are resorting to blending

1.30

1.65

3.52

4.66

6.04

4.40

3.37

3.66

3.18

3.63

3.40

4.96

6.08

6.97

6.95

0

2

4

6

8

10

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

Import of Coal

Year

Mn

.t.

The drop in 2009-10 is due to discontinuation of Membership by two cement companies, whose data is not included.

12

of higher grade/imported coal

with the domestic coal to

upgrade the quality. Cement

plants are also getting their raw

coal washed in private

washereis located in the

jurisdiction of coal companies

particularly SECL, WCL & SCCL.

It may be recalled that as per

the latest policy of Government,

all new coal projects with

capacity of 2.5 mn.t and more

should have washeries as an integral

part.

Quality of Coal

In the context of continued

deterioration in the quality of coal

being supplied to Cement Industry, an

internal survey was done in the CMA.

As per this exercise, the coal supplied

in most of the rakes was found to

contain one to four grades below the

billed grade. Coal Companies have,

therefore, been requested to

(i) supply proper quality of coal to the

cement plants, (ii) consider re-grading

of coal to appropriate levels, (iii) have

a Mechanism to compensate for the

monetary loss sustained by the

cement plants, and (iv) ensure that in

future the coal supplies be subjected

to joint sampling, if so desired by the

buyer, so that actual quality of coal is

determined for each consignment.

We hope, the coal companies will take

appropriate action in this regard.

Coal Loading by Rail

Average loading of linked coal, for

entire Cement Industry, during the

year 2009-10, was 1086 wagons FW

per day, as against 1030 FW per day

in 2008-09 i.e. an increase of 56 FW

per day over last year.

Captive Coal Blocks

The Screening Committee of Ministry

of Coal (MOC) has allotted coal blocks

to some Member Cement Companies.

However coal production is yet to

start.

E-Auction

The New Coal Distribution Policy

(NCDP) provides that the FSAs

between Cement Industry and the

Coal Companies will be signed for

75% of the normative requirement of

the Cement plants. The actual supply

will, however, be still lower. The

cement plants have, therefore, to

825

799

731

525

605

670

809

785

891

1055 1100

1079

1086

1030 1086

400

500

600

700

800

900

1000

1100

1200

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

Coal Loading

YearF

w/D

ay

49th Annual Report

13

procure coal from open market

including E-auction. It has been

reported by the Member units that the

per tonne cost of E-auction coal is

very high; at times, almost twice the

notified price of coal, adding

substantially to the cost of cement

production.

Supply of Imported Coal to New

Consumers

NCDP provides that in case the coal

companies are not able to supply

indigenous coal against the FSA

quantity, the shortfall would be made

good by the coal company by

supplying imported coal. CMA had

earlier requested Coal Companies that

the consumer should have the liberty

to decide on procuring imported coal

through the Coal Company or import

directly. This issue was considered by

CIL, and CIL has now agreed to allow

the consumers the option of

surrendering imported coal supply. In

other words, a consumer may not

take the imported coal from Coal

Companies. In such cases, the FSA

through Letter of Assurance (LOA)

route will be signed for only 50% of

the entitled quantity for supplying

indigenous coal.

Delay in the Signing of FSAs

through LOA Route

The Long-Term Linkage Committee

Meetings held on 20th November

2007 and 20th March 2008 authorized

the coal companies to issue LOAs to a

large number of cement plants and

CPPs.

As per NCDP, the coal supplies to

these units can commence only after

the FSAs are signed and the FSAs

would be signed only after the

prescribed Milestones, as enunciated

in the LOA, are achieved.

There are 16 Milestones for cement

kilns and 11 for CPPs which are to be

completed by the LOA holders.

Documents/papers are required to be

submitted against each of the

Milestones. Although the LOA holders

complied with the requirements of

most of the Milestones, there are still

cases where cement plants are facing

insurmountable and practical

problems in furnishing the documents.

CMA had, therefore, represented to

Chairman CIL in May 2009 for making

necessary modifications in the

requirements of some of the

Milestones. The issue was

subsequently discussed in a meeting

between CMA representatives and

Director (Mktg.) CIL and his team at

New Delhi on 20th July 2009.

This issue of delay in signing FSAs

was also discussed in the Meeting of

Secretary, Co-ordination on 21st May

2009. Secretary, Co-ordination

advised DIPP to discuss the issue with

MOC/CIL for expediting the signing of

FSA. Accordingly, Director DIPP had

14

two Meetings with CIL and CMA

Representatives on 6th July 2009 and

22nd July 2009 in this regard.

It is understood that the CMA’s

request is being duly considered by

CIL/MOC for making modifications in

the requirement of some of the

Milestones.

CMA has again taken up the matter

with concerned authorities requesting

that after the modifications in the

requirement of Milestones are notified

by CIL, the process of signing of FSAs

could commence.

CMA, however, has also pointed out

that there will be some cases where a

few cement plants may not be in a

position to submit a few documents

exactly in the manner as required in

the LOA and/or as approved by CIL

Board, for the reasons beyond their

control. For such cases, it has been

suggested that a Review Mechanism

may be put in place under a Senior

Officer of the Coal Company to

resolve these issues. At least 3

months’ time should be allowed to

complete the revised Milestones after

these are notified. For cases falling

under Review Mechanism, the period

of 3 months be reckoned after the

issues are resolved.

CMA has also requested that the BG

(Bank Guarantee) submitted by

Cement Plants against Commitment

Guarantee (CG) should not be

encashed till FSAs are signed. CMA

has further requested that the

modifications agreed for Cement

Plants may be made applicable to

CPPs as well.

Sanction of Long Term Linkages of Coal to New Capacities

Cement Industry has been given the

task of meeting the overall cement

requirement of the country. In fact,

Cement Industry is expected to

sustain a double-digit growth during

the next few years. Though geared to

fulfil the task, the Industry’s realizing

this target would depend upon the

adequate availability of coal, which is

the most important input. Most of the

cement companies have applied for

sanction of long-term linkages of coal

to MOC/ SLC (LT). Unfortunately,

these applications are still pending for

consideration.

The last two SLC (LT) Meetings,

pertaining to cement sector, were

held on 20.11.2007 for kilns and

20.3.2008 for CPPs. No SLC (LT)

meeting has been held since then. All

new capacities are facing serious

problems regarding allocation of coal.

CMA has taken up the issue with the

MOC/DIPP a number of times to

convene an early meeting of the SLC

(LT) so that the new capacities start

getting coal at the earliest.

49th Annual Report

15

Discontinuation of SLC (ST) – Alternative Mechanism in Lieu

Thereof

As mentioned in the last Year’s Report

i.e. 2008-09, in the last SLC (ST)

Meeting held on 19th December 2008

it was indicated by Chairman SLC

(ST)/Special Secretary, MOC that in

view of the fact that the bilateral

FSAs, as per NCDP, are now in place

to govern the coal supplies to Cement

Industry, there is no need to have

these quarterly meetings for deciding

the coal movement programme and,

therefore, it would be the last meeting

of SLC (ST) and, if necessary, a

smaller alternative mechanism may

be created in lieu of SLC (ST).

Considering the usefulness of this

forum, CMA took up the matter with

Chairman SLC (ST) and Special

Secretary (Coal), Secretary (Co-

ordination) and Secretary DIPP.

Notwithstanding our repeated

request, the system of holding SLC

(ST) meeting was discontinued.

Neither was an alternative

mechanism put in place as

assured by Coal Ministry.

CMA was, therefore, pursuing

with MOC to introduce an

alternate mechanism in place of

SLC (ST) expeditiously to bridge

the vacuum. However, MOC has

now finally notified that SLC

(ST) having been discontinued,

the coal supplies to Cement

Industry will henceforth be governed

as per the bilateral Fuel Supply

Agreements between the Cement

Plants and Coal Companies.

TRANSPORTATION - RAILWAYS

During the Year under review

(2009-10), the overall supply position

of wagons to the Cement Industry

was much lower than the requirement

of the Industry. The severe despatch

problems, being experienced by the

cement plants, were further

aggravated when Railways had

started diverting wagons to Fertilizer,

Foodgrains and Power sectors. This

had badly disrupted the loading of

cement, clinker and coal by Rail,

despite Industry’s best efforts to

increase the cement loading by Rail.

Partly as a result of this, Rail share

(as a %age to the total despatches)

has dropped by 2% in case of cement

and 1% in case of clinker over last

Year (see Bar Charts below).

Cement Despatches

85.86

100.42

3.04 2.58

53.3356.85

35.5637.50

0

20

40

60

80

100

120

2008-09 2009-10

Mn

.t.

20

25

30

35

40

45

50

55

60%

ag

e

Rail Road

Sea Rail share %age

Year

16

CMA continued to draw the attention

of the Senior Officials of the Railways,

including its Chairman and Hon’ble

Minister of Railways to the Rail-

related problems being confronted by

the cement plants and also their

possible remedial measures to

overcome them.

Cement loading: During the Year

2009-10, cement despatches by

Member Companies by Rail were

56.85 mn.t, out of the total

despatches of 159.85 mn.t. These

companies have despatched 53.33

mn.t by Rail, out of their total

despatches of 142.23 mn.t during

2008-09, a growth of 6.6% in cement

loading by Rail on YOY basis.

However, when cement despatches by

Rail are compared with the total

despatches of cement, there has been

a drop of about 2%.

Clinker loading: During 2009-10,

Member Companies despatched 25.65

mn.t of clinker. Out of this, 14.23

mn.t of clinker was moved by

Rail i.e 55.48%. During 2008-

09, total clinker despatches by

these companies were 20.15

mn.t and the despatches by

Rail were 11.37 mn.t i.e

56.43%. Although growth in

Clinker loading by Rail has gone

up by 25.2% in 2009-10, it has

declined by 1% when compared

to the total despatches of

clinker.

Cumulative Despatches (cement +

clinker): During 2009-10, the

overall cumulative despatches of

Member Companies were 185.50 mn.t

as against 162.38 mn.t during 2008-

09, a growth of 14.2%.

Cumulative Despatches by Rail

(cement + clinker): During 2009-

10, total despatches by Rail were

71.08 mn.t as against 64.70 mn.t last

year, a growth of 9.9%.

Year-wise details of Cement and

Clinker despatches by Rail/Road/Sea

for the period 1992-93 to 2009-10 are

given at Annexure-VII.

CMA Committee on Railway Matters

In the last one year, the CMA

Committee on Railway Matters, under

the Chairmanship of Shri Kamal

Kishore, met seven times to discuss

Clinker Despatches

5.31

14.23

11.37

7.99

3.47 3.43

56.43

55.48

0

2

4

6

8

10

12

14

16

18

2008-09 2009-10

Mn

.t.

45

50

55

60

65

70

%a

ge

RailRoadSeaRail share %age

Year

49th Annual Report

17

HIGHLIGHTS - RAILWAY BUDGET 2010-11 RELEVANT TO CEMENT INDUSTRY

� No increase in the freight tariff.

� A Modified Wagon Investment Scheme for high capacity general purpose

and special purpose wagons to be introduced.

� Private operators to be permitted to invest in infrastructure and run

special freight trains.

� Acquisition of 18000 Wagons.

� A New Scheme “House for All” to be launched, to provide residences to all

Railway employees in the next ten years with the help of Ministry of Urban

Development.

� To set up about 522 hospitals and diagnostic centres, 50 Kendriya

Vidyalayas, 10 residential schools on the pattern of Navodaya Vidyalaya,

Model degree colleges and Technical and Management Institutions of

national importance to benefit Railway employees and their children.

various Rail-related issues and also

evolve strategies and action plans for

taking up these issues with concerned

Authorities.

Representations/ Presentations

A number of Representations/

Presentations were made to senior

officials of the Railway Board,

including Hon’ble Minister of Railways,

Chairman, Member (Traffic),

Executive Directors and Chairman,

Rail Cement Co-ordination Group. In

addition, representations were also

addressed to Secretary and Joint

Secretary, DIPP, Ministry of

Commerce and Industry and

Secretary (Coordination), Cabinet

Secretariat soliciting their support for

resolving the problems being

experienced by the Industry.

Railway Budget 2010

CMA in its reactions to the ‘Railway

Budget 2010', inter alia, brought to

the notice of the Hon’ble Minister of

Railways the acute despatch problems

being faced by the Cement Industry

due to short supply of wagons and

requested her that Cement Industry,

which is the third largest customer

and also revenue earner for Railways,

be put on par with Foodgrains,

Fertiliser and Power Sectors insofar as

allotment of wagons is concerned.

Hon’ble Minister was also requested to

consider restoring the Classification

Slabs for cement, clinker and coal to

their prior level i.e. 140 from the

present slab of 150.

18

Meetings with Railway Officials

In the last one year, representatives

of the Cement Industry and the

Members of the CMA Committee on

Railway Matters had 4-5 meetings

with senior officials of the Railway

Board, including its Chairman and

Members. These meetings were also

attended by senior officials from the

Zonal Railways.

During the meetings, the issues that

were currently impacting the Cement

Industry, their possible remedial

measures, future pattern of cement

loading and the industry’s

expectations from the Railways were

raised by CMA. These are detailed

below:

a) Acute Shortage of Wagons :

It was suggested that Railways

may ensure regular and

guaranteed supply of wagons,

including Box-N wagons and

two point/ multi point rakes to

the cement plants, throughout

the year, which would go a long

way in Railways achieving the

250 mn.t of cement loading by

2020.

b) BCN-HL Wagons : Officials of

the Railway Board have been

informed of the practical

problems being faced by the

Cement Plants in loading 4000

tonnes of Cement in rakes of

BCN-HL Wagons and have

requested them to consider

enhancement of free time,

option of multi-point rakes and

waival of penal demurrage and

wharfage charges till the

Industry acquires adequate

confidence in handling them.

c) New Scheme of Wagon

Investment : The new

Scheme may provide for

procurement of BCN and BOXN

wagons;

Wagons supply position at

existing level is required to be

reasonably established and

guaranteed on a rotating

average, besides additional

rakes linked with procurement;

Freight concession may not be

limited to Return On

Investment with interest but

should be available for the

entire life of wagons i.e. 35

years; and

Obligation for procurement of

additional rake may be kept

flexible, as each rake would

cost around Rs 18-20 Crores.

d) Bulk Transportation: There

is a huge untapped opportunity

available for transportation of

49th Annual Report

19

cement in bulk through special

purpose wagons. The present

Rail movement of bulk cement

is around 2% of total installed

capacity in the country.

However, due to increasing use

of Ready Mix Concrete and

consumption of Bulk cement, it

is likely to go upto 20% in the

next few years. To facilitate

such growth, the following

suggestions were made to the

Railways:

i. Separate tariff classification

for Bulk Cement or

alternately the discount

structure based on complete

life span of wagons;

ii. Discount/Rebate should be

based not only on the

investments made on the

procurement of wagons but

also on the investments

made for creation of

necessary infrastructure

facilities for handling bulk

cement. Further, this may

be reviewed every alternate

year, taking into account the

inflation cost and the

prevailing freight rates; and

iii. Engine-on-load facility for all

types of wagons and doing

away with engine hiring

charges.

e) Round-The-Clock Woking

Hours: It was requested that

Railway Board may consider

prescribing feasible and

practical unloading hours since

round-the-clock working hours

for unloading are not feasible

due to constraints related to

infrastructure and labour

availability and to avoid

unnecessary demurrage and

wharfage charges being paid by

the Cement Plants to the

Railways.

f) Development Of Terminals :

It was suggested that Railways

may consider allocating suitable

funds for the development of all

major terminals. Further, the

urgent need to find out new

locations in and around the

Metro cities for developing new

terminals so that increasing

arrival of cement in Metros

could be handled efficiently,

was also highlighted.

Workshop on Draft Policies

convened by Railways

At a Workshop convened by the

Railway Board on 17th April, 2010 in

New Delhi, CMA made certain

suggestions for incorporation in the

20

following Schemes proposed by the

Railways :

All the Policies that are proposed or

those in existence should be made

simple, clear and transparent to avoid

any mis-interpretation of the clauses

when it comes to financial matters.

In case of any dispute in

interpretation of the Policy, a mutually

acceptable solution should be found

out.

Since Cement Industry is the third

largest customer and revenue earner

for Railways, Railway Board may

consider bringing out a simple,

transparent and industry-friendly

Specific Policy for the Cement

Industry for movement of cement

(bagged/bulk); clinker, coal, fly ash,

gypsum, etc. This will go a long way

in Railways achieving the 250 mn.t of

cement loading target by 2020, as

projected by the Railways in their

Vision Document 2020.

Policy on Special Freight Train

Operator (SFTO)

I. Rail freight concession/rebate

should not be decided merely

on the investments made for

procurement of wagons. The

huge investments that are

needed for creating necessary

infrastructure facilities for

handling movement of fly ash,

etc. both at loading/unloading

points should also be

considered, while fixing

concession/rebate.

II. Looking to the colossal

investments that need to be

made by the SFTO, the freight

concession contract should not

be restricted to 20 years, or

extendable by another 10

years. Since these investments

will be made in the larger

interests of the Railways, the

Concession Contract with SFTO

should be made for the entire

life of the wagons i.e. over 35

years.

III. Minimum Guarantee of

Wagons/Rakes: Against each

rake procured, a minimum

guarantee for supply of 6 rakes

per month should be given.

This should be over and above

the average number of rakes

being received by the investor

in the last two financial years.

Policy on Development of Private

Freight Terminal

The stipulation in the Draft Policy

Paper that revenue sharing at the

then prevailing rate of terminal

charge leviable at the Railway goods

sheds, which is Rs. 20/- per tonne at

present, and also increasing revenue

49th Annual Report

21

sharing by indexing it to 90% in the

WPI increase, which is the inflation

figure, is very high and an unviable

proposition. This needs to be reduced

by at least 50% of the proposed

revenue sharing.

Your Managing Committee is hopeful

that Railways would consider

favourably all the suggestions of the

Cement Industry. Such a step would

not only increase the revenue

earnings of Railways from the Cement

Industry but also help execution of

various ongoing and future

construction projects on time, a major

thrust area of the Government.

POWER

Cement Industry is highly power

intensive. Most of the operations

depend on power. Cement Industry,

being a continuous process Industry,

a continuous and uninterrupted supply

of power is of a sine-qua-non.

Due to poor quality of power with

interruptions supplied by the State

Electricity Boards, most of the cement

units in different States have installed

captive power facilities, some for

100% of requirements.

As on 31st March 2010, the total

captive power generation capacity

installed in the Cement Industry was

2354(P) MW, of which 56% (1323

MW) is based on Thermal and 44%

(1031 MW) is based on Diesel. In

addition, wind farms of around 85 MW

have also been installed.

During the year 2009-10, cement

production with captive power was

around 59%.

JUTE PACKAGING FOR CEMENT INDUSTRY

During the Year under review, cement

continued to be out of the list of

commodities to be packed in jute

bags.

LEGAL MATTERS

SUPREME COURT OF INDIA

CIVIL APPEAL NO. 876/2008

DG (NVESTIGATION &

REGISTRATION) VS. CMA & OTHERS

As reported last year, CMA filed an

Appeal in January, 2008 along with a

Stay application in the Supreme Court

of India against the “Cease & Desist”

Order dated 20.12.2007 passed by

MRTP Commission, praying that

pending hearing and disposal of the

appeal, the impugned Order dated

20.12.2007 of the MRTP Commission

in RTPE No. 99 of 1990 be stayed.

The CMA’s Appeal No. 876 of 2008

was tagged with other Appeals filed

by individual Member Companies in

the matter. The matter came up

(P) = Provisional

22

before the Apex Court on 8th

February 2008, which pronounced the

following Order:

“Permission to file appeal is

granted.

Issue notice in all the civil

appeals returnable after eight

weeks.

By way of interim relief the

following directions are stayed:

‘We further direct them

to file an affidavit of

Compliance of the above

directions within eight

Weeks of the

pronouncement of this

order.’ ”

The matter was listed before

Registrar, Supreme Court of India on

18th August 2009 to complete the

pleadings. The Registrar gave liberty

to the Respondents to file Counter

Affidavit within four weeks and

adjourned the matter.

No date for hearing in the matter has

yet been fixed.

CIVIL APPEAL NO. 2987/2008

CEMENT MANUFACTURERS’

ASSOCIATION VS. SARABJIT S.

MOKHA & ORS.

Members may recall, against the

MRTP Commission’s Order dated

29.02.2008 appeals were filed in the

Supreme Court of India by the

concerned Cement Companies (Satna

Cement Works, Lafarge, ACC, Grasim

and Maihar Cement). After hearing

the counsel on 16.4.2008, the Hon’ble

Court directed Issue of Notice and

stayed the directions to file Affidavit

of Compliance of “Cease & Desist

Order”. Court also ordered to tag this

case with Civil Appeal No. 686 of 2008

(filed by ACC).

In April, 2008, CMA also filed Civil

Appeal No. 2987/2008 in the

Supreme Court of India. Since CMA

was not required to file an Affidavit of

Compliance with the Commission, no

prayer for Stay on filing of Affidavit of

Compliance was filed by CMA. CMA

impleaded Shri Sarabjit S Mokha, Shri

Naresh Grover and concerned Cement

Companies (who were Respondents in

the RTPE No. 21 of 2001) as

Respondents. The Appeal was listed

for hearing on 9th May 2008. Upon

hearing the counsel, the Court made

the following Order:

“Issue notice to Respondents 1

and 2 only.*

Tag with Civil Appeal No. 2467

of 2008 etc.”

In October, 2008 Shri Sarabjit S

Mokha & Ors. filed an application for

vacation of stay in the SLP filed by

ACC Limited. Further, in December,

* S/Shri Sarabjit S. Mokha and Naresh Grover

49th Annual Report

23

2008 Counter Affidavit was filed on

behalf of Respondents No. 1 & 2* in

the matter of Civil Appeal no.

2987/2008 filed by CMA.

In September, 2009 CMA filed a

detailed Affidavit as Rejoinder to the

Counter Affidavit filed by Shri Naresh

Grover on behalf of Respondents

No. 1 & 2.

No date for hearing in the matter has

yet been fixed.

RESTRICTIVE TRADE PRACTICES

ENQUIRY NO.15/2007

THE DIRECTOR GENERAL (I&R)

VS. M/S. BINANI INDUSTRIES

LIMITED & ANR.

As already reported last year, based

on the Preliminary Investigation

Report prepared by the office of the

DG (I&R) which inferred that Cement

Manufacturing Companies use the

forum of Zonal Marketing Committees

of CMA to decide the terms and

conditions of sale including prices

through cartelisation, MRTP

Commission had issued Notices dated

2.9.2008 under Section 10(a)(iv) of

the MRTP Act, 1969 to CMA and 14

other Cement Producers to file reply

within four weeks.

In November, 2008 CMA filed its reply

stating that CMA does not play any

* S/Shri Sarabjit S. Mokha and Naresh Grover

role in fixing the prices of cement,

marketing the cement and/or fixing

terms and conditions for sale of the

cement in market etc. Besides, it does

not have any authority either to do so

or to bind its members by directions

issued by it to sell cement at a

particular price only, and hence the

PIR against the CMA is untenable and

is liable to be dismissed.

In April, 2009 on behalf of DG (I&R) a

Rejoinder was filed to the reply filed

by CMA.

The matter was fixed for 20th October

2009 for framing of Issues.

In the meantime the Competition

(Amendment) Ordinance, 2009 was

promulgated repealing the MRTP Act,

1969 and the MRTP Commission

established under the repealed Act

stood dissolved. Hence from 14

October 2009 all cases pertaining to

Monopolistic Trade Practices or

Restrictive Trade Practices pending

before MRTP Commission got

transferred to Competition Appellate

Tribunal.

The matter was listed before

Competition Appellate Tribunal

headed by Hon’ble Justice Arijit

Pasayat on 12th March 2010. After

hearing the parties briefly, the

Ld.Judge was of the view that let the

pleadings and other formalities in the

24

matter be completed and that he

would take up the matter once the

same are completed. Accordingly, the

matter has been adjourned to 1st

October 2010 for further proceedings.

INTEREST ON DELAYED PAYMENT OF

ENHANCED ROYALTY ON LIMESTONE

There is no progress in the matter

during the Year under review.

COMPETITION COMMISSION OF INDIA (CCI)

It has already been reported in last

year’s Annual Report of CMA that the

Members resolved that every effort

would be made to ensure that the

charter of duties of CMA and

furnishing of information to various

authorities from time to time,

including materials for information on

parliament questions etc. should be in

consonance with the Competition Act.

CMA obtained independent opinions

from two well known legal experts,

Shri P.N. Bhagwati, Former Chief

Justice of India and Shri R.C. Lahoti,

Former Chief Justice of India in

October 2009 regarding the activities

of CMA including supplying a variety

of information to the Government

authorities.

Both the opinions categorically

validated CMA’s practices and

procedures and have endorsed that

there is no violation, whatsoever, of

the provisions of the Competition Act

in any manner either in collection of

data or in the information sharing, nor

is there any need to modify the

present procedure, reporting details

etc. and have advised continuing with

our activities.

A third independent opinion from M/s

Nishith Desai Associates, Legal and

Tax Counseling Worldwide, obtained

in October 2009 also concurs with

other two. A relevant part is quoted

below:

“… CMA does not solicit or

take part in any collusion

between the members on

the aspect of price fixing,

limiting production or any

of the prohibited activities

as prescribed under the

Competition Act. ……the

activity of the individual

members of merely

sharing information with

CMA, without any element

of collusive behavior inter

se them, should be a

permissible activity within

the aegis of the

Competition Act”.

M/s Nishith Desai Associates, in

addition, suggested amendments to

the “Memorandum and Rules and

Regulations of CMA” to make it

compliant with Competition Act. These

49th Annual Report

25

include (i) addition of Preamble (ii)

deletion of clauses 3(b), 3(g) and 3(j)

and (iii) amendments in clauses 3(d)

and 3(f) of objects in Memorandum of

Association and addition of clause

2(b) in Rules and Regulations. A

further suggestion had also been

made to include certain information

pertaining to activities of CMA on the

CMA Website.

While suggestions regarding inclusion

of the information on CMA’s Website

have been carried out, the changes in

“Memorandum and Rules and

Regulations of CMA” can be effected

only after due approval of the

Members at an Extra-Ordinary

General Meeting (EGM) followed by

another EGM within one month

confirming the change.

The above changes were approved by

Managing Committee at its Meeting

held on 30th November 2009. The

matter would be taken up at the EGM

to be held on 23rd September 2010 to

consider and approve the changes

suggested by the Managing

Committee.

COMPREHENSIVE STUDY ON CEMENT SECTOR

As mentioned in CMA’s Annual Report

for 2008-09, the Study was awarded

to National Council of Applied

Economic Research (NCAER) on 31st

March 2009. A Draft Report of the

Study was to be submitted by March

2010. However, due to the

Consultancy firm not receiving the

required information from the

Members, the report has been

delayed.

As per the Terms of Reference, the

Study included an analysis of the non-

traded cement sale. A detailed

Questionnaire was prepared by the

Consultant for the purpose of eliciting

such data and was forwarded to the

cement companies. No response was

received even after a lapse of

considerable time. A meeting of the

officials of the group of Cement

Companies who were nominated to

look after the progress of the Study

was organized, and the Questionnaire

was revised to help expedite cement

companies in providing the data to

NCAER. The Final clearance for the

information in the revised

Questionnaire was given in last week

of May 2010. The Questionnaire has

been circulated again to Members and

the data has to be analyzed on receipt

of the filled in Questionnaire from all

the Members for inclusion in the Draft

Report.

The Consultant has indicated that he

expects to submit the Draft Report in

August 2010, subject to his receiving

the information sought in the

Questionnaire from all the Members

early as three months’ time would be

26

required for analysis and

interpretation of the results to be

included in the Report.

EXPORT

Indian Cement Industry could

commence Exports of Cement and

Clinker only after the Government

totally decontrolled Cement from

31.3.1989.

With a beginning of mere 0.16 mn.t in

1989-90, Exports reached a peak of

10.6 mn.t in 2004-05. However, the

following years witnessed a drop

partly due to market conditions, both

domestic and international, and partly

due to change in Government policies.

As also mentioned in last year’s

Report, there was a drop of 33% to

6.02 mn.t in 2007-08 from 9.00 mn.t

in 2006-07. Exports should have

further declined due to the ban

imposed on exports in April

2008 to improve cement

availability in the domestic

market. However, due to

various representations made

by CMA mentioning that the

ban on exports, while providing

an easy access to neighbouring

countries to grab the already

developed markets by the

Indian cement manufacturers,

could also lead to legal action

by foreign buyers if contracts

are not honoured timely, the

Government partially lifted the ban in

May 2008 by permitting exports to

Nepal and exports from Gujarat Ports.

The ban on exports was completely

lifted in December 2008.

It is only due to this total lifting of ban

on exports that there was a marginal

increase in exports in 2008-09 to 6.10

mn.t from 6.02 mn.t in 2007-08.

The year 2009-10 witnessed a drop in

exports to 4.74 mn.t. The drop is

partly due to the exclusion of data

from the two companies who have

withdrawn their membership from

CMA and partly due to competition in

the international market.

Country-wise Cement and Clinker

exports by Indian Cement Industry

during 2008-09 and 2009-10 are

given in Annexure-VIII.

5.98

3.18

5.89

3.11

3.65

2.37

3.20

2.90

1.60

3.14

0

2

4

6

8

10

05-06 06-07 07-08 08-09 09-10

Cement and Clinker Exports

Cement Clinker

Year

Mn

.t.

9.17

6.106.02

9.00

4.74

The drop in 2009-10 is due to discontinuance of Membership by two cement companies, whose data is not included.

49th Annual Report

27

MARKET DEVELOPMENT

CMA continued its efforts to promote

greater consumption and more

widespread use of cement during

2009-10. CMA officials, on their own

and in conjunction with the

representatives of the cement

companies, held meetings with a large

number of Central and State

Government officials on the subject.

Meetings were also held with other

Authorities, such as Municipal officials,

Heads of Industrial Development

Corporations and Chief Engineers.

The emphasis, as in previous years,

was on the construction of cement

concrete highways, city streets and

rural roads throughout the length and

breadth of the country. Other uses of

cement, such as in concrete canal

lining and rural housing were also

discussed.

Presentations on the advantages of

cement concrete roads were made to

the above mentioned officials and

Authorities along with their Engineers,

Consultants, junior functionaries and

Contractors.

In addition to the above, discussions

were held, presentations made and

letters written to various Ministers

and other senior functionaries of the

Central and State Governments on

the subject of cement concrete roads.

All the above activities resulted in a

number of Cement Concrete Roads

being planned for and being

constructed. Broad details of action

taken and results obtained can be

seen at Annexure-IX.

Software for Cost Comparison, Concrete vs Bitumen Roads

During the last several years, while

promoting the construction of Cement

Concrete Roads, CMA and the

representatives of various cement

companies found that while long life,

low maintenance, environment and

user-friendliness, as well as other

superior characteristics of concrete

roads were readily accepted by almost

all concerned, the decision to build

Cement Concrete Roads instead of

Bituminous ones, was quite often not

taken, due to fears that the Concrete

Roads would be much costlier. CMA,

therefore, commissioned the

development of a software, which

could be used effectively to compare

the cost of cement concrete and

bitumen roads, over as wide a

spectrum of criteria, as was likely to

be met anywhere in the country.

The software was designed to cover

all types of roads and different types

of construction using various input

costs and life spans. Road design and

fixed costs were based on guidelines

28

laid down by the Ministry of Road

Transport & Highways.

The initially developed software was

studied and discussed during a

number of meetings, where valuable

inputs from representatives of the

Cement Companies were received.

The duly modified software

incorporating these suggestions was

finalized and distributed to all cement

companies, Nodal Officers and others

concerned.

Meeting with World Bank

A Meeting was held with the Senior

Road Specialist of the World Bank and

his staff in New Delhi, to discuss

utilization of World Bank funds for the

construction of Cement Concrete

Roads. CMA publications were

handed over to them.

On-Ground Costing of Concrete vs

Bitumen Roads

On our request, M/s. Jaiprakash

Associates Ltd. who are constructing

Bitumen as well as Cement Concrete

Roads, graciously provided CMA with

actual on-ground cost comparison of

the two pavement types. The same

was duly circulated to all cement

companies and Nodal Officers, as a

live Case Study.

Progress Achieved in States

As mentioned in the 48th Annual

Report (2008-09), CMA had requested

Cement Companies to appoint Nodal

Officers, to promote the construction

of cement concrete roads, in areas

they operated. Several companies

appointed such Nodal Officers.

Promotional efforts by Nodal Officers,

in conjunction with CMA officials have

achieved progress as given in the

following paras:

Rajasthan: Govt. of Rajasthan has

issued a letter on 29th September

2009 to the effect that, in future, the

majority of roads in the State should

be constructed in cement concrete.

Karnataka: On 28th July, 2009, the

Karnataka Land Army (KLAC), which

is a construction agency of the State

Govt., issued a letter which stated

that in future, most of the roads being

built by KLAC would be made of

cement concrete.

Apart from the above, the Karnataka

Govt. has sanctioned a 30 km long

cement concrete road at Shiradi Ghat.

Delhi: The Delhi Govt. has decided to

construct nearly 200 kms of cement

concrete roads in the near future.

Maharashtra: Nagpur and Nashik

Municipal Corporations have

49th Annual Report

29

undertaken construction of a large

number of concrete roads.

Tamil Nadu: Discussions were held

with several Chief Engineers with

regard to the construction of cement

concrete roads, in January 2010.

Uttar Pradesh: The Department of

Dr. Ambedkar Rural Development of

Government of Uttar Pradesh, vide

letter dated 29 October 2009 have

sanctioned construction of internal

roads in cement concrete and KC

drains in 2195 villages and allocated

Rs. 850 Crores for the same.

TECHNICAL MATTERS

The year witnessed many “Firsts” for

the Indian Cement Industry in widely

divergent fields. Prominent among

them are: (a) fastest [paced] annual

expansion of the Industry along with

accompanying high level

modernization through state-of-art

technology, (b) proactiveness of

statutory bodies in introduction of a

series of Regulatory standards on

environmental Protection, namely, the

Draft EIA (Environmental Impact

Assessment) Act of 14th September

2009, National Air Quality Monitoring

Act, January 2010; new standards on

environment-friendly mining practice,

namely, the New Mines and Minerals

(Development and Regulation) Act,

2009, the activities of the NAPCC

(National Action Plan on Climate

Change) and INCCC (Indian National

Conference on Climate Change) with

targeted thrust on energy-use based

sectors for reducing GHG emission in

fulfilment of India’s commitment to

United Nations Framework Convention

on Climate Change (UNFCCC) in

abatement of escalating global

warming.

The Industry underwent unforeseen

capacity expansion of 37 mn.t during

the year, which is the highest in a

single year. The striking feature of

capacity expansion in the Industry

during the year, both in Greenfield

and Brownfield expansions, as well as,

in setting up new grinding units saw

adoption of larger capacity and latest

modernisation of kilns, mills and

grinding units than in previous years.

Through such modernization and

expansion, the Industry achieved

further notable improvements in

operational efficiency, process control

and energy conservation in new

plants. The five key areas where the

new generation plants excel from

those installed in earlier years are:

(a) Higher capacity utilization with

lesser downtime,

(b) Lesser thermal energy

consumption,

(c) Better electrical energy

efficiency,

30

(d) Lower and achievable minimum

levels of both gaseous and

particulate emissions, and

(e) Adaptability of plants to use a

wider range of alternative or

substitute raw materials, fuels

including waste derived fuels

and a long list of conceivable

industrial wastes.

In all these enumerated areas the

achievements of some of the new

generation plants have set

“Benchmarks” for other cement

producing countries in the World. Yet

another major hallmark achieved by

the Indian Cement Industry in the

year under reference has been a

larger rate of reduction by the

Industry in the Greenhouse Gases

(GHGs) emissions than in previous

years. The Industry also had a larger

contribution to Climate Change

Abatement and Sustainable

Development through larger volume

of recycling of major industrial wastes

like fly ash and Blast Furnace Slag in

cement production.

NOTABLE TECHNOLOGICAL DEVELOPMENTS DURING THE

YEAR

Conventional Fuel Security and

Alternative Fuels

The alarmingly surging crisis in fuel

security prompted many member

companies to opt for co-processing of

alternate fuels. Successful plant trials

with varied Waste Derived Fuels

(WDF) undertaken during the last 4

years by several plants in

collaboration with the State Pollution

Control Boards and under the

supervision of CPCB provided highly

satisfactory results. Parallelly, CMA’s

relentless pursuit of the case with the

MoEF and CPCB bore fruits. As a

result, the MoEF Draft National Waste

Management Strategy uploaded in its

Website on March 26, 2009

recommended Cement kiln as the

most environment-friendly

mechanism for recycling four types of

hazardous combustibles, namely,

shredded tyres, paint sludge, TDI Tar

Waste, and ETP sludge. In further

follow-up of its earlier move to

facilitate co-processing waste plastics

in Cement kilns of Rajasthan and J&K,

the CPCB has, in consultation with

Cement Industry experts, brought out

recently (April 2010) a comprehensive

“Guideline on Co-processing Wastes in

Cement Industry”.

Status of On-Going Issues

During the year under review, the

Technical Committee pursued its

dialogue on several on-going issues

with a host of statutory bodies with

mixed results.

49th Annual Report

31

A. Bureau of Indian Standards [BIS] – Solution to Long

Pending Issues

Frequent intensive interactions

of the experts of CMA Technical

Committee with BIS led to

solutions to a number of long-

pending issues. A few

important issues raised or

proposals made by BIS which

had been dealt satisfactorily for

the Industry with assistance

from the Department of

Industrial Policy and Promotion,

Ministry of Commerce and

Industry are:

� Procedures for destruction

of Non-conforming/

substandard cement -

Guidelines provided for

environment-friendly

recycling as evolved by a

core expert group of the

Cement Industry, had been

accepted by BIS.

� Scope of acceptance of ISO

Final Draft International

Standards for Tests on

Setting time and fineness of

cement [views of Indian

cement manufacturers carry

weight, India being a

signatory to WTO

Guidelines] - Procedure

suggested by ISO has been

accepted by India on

voluntary basis, as an

alternative, on

recommendations from the

Indian Cement Industry,

and this suggestion has

been accepted by ISO.

� Revision of Indian Standards

on cement – OPC 33, 43 and

53 Grades – CMA’s several

recommendations including:

(a) to increase the

permissible SO3 content in

cement [from 2.5 to 3.5 %],

and (b) suggested revisions

in the STI (Scheme of

Testing and Inspection) for

cement etc. have been

admitted by the Specialist

Panel of BIS.

� Declaration of content

(percentage addition) of

additives (flyash, slag) in

cement bags – the logic of

the Cement Industry has

been admitted in

withdrawing this suggestion.

B. Issues with CPWD - Boost in Use of PPC after CPWD

lifting Ban

The Final Report of the DIPP

Sponsored Project with Central

Electrochemical Research

Institute, Karaikudi, Tamilnadu

32

(CECRI) on “Studies on

Durability of Concrete made

with Flyash Based Portland

Pozzolana Cements in

comparison to Concrete made

with Ordinary Portland Cement”

brought out several areas of

favourable performance of PPC

in comparison to OPC. With

the issue of the CPWD Circular

of 9th April 2009 close on its

heels, the decks have been

cleared for larger use of PPC,

and in addition, its use in

structural concrete also. Lifting

the ban on use of PPC has had

a tremendous impact on all

types of constructions including

on Ready Mixed Concrete

Industry for larger use of PPC.

A large number of joint-

collaboration Projects (between

major thermal power plants

and cement companies) for

setting up grinding units have

been achieved or are in the

final blue-print stage in many

parts of the country.

C. Issues with Bureau of Energy Efficiency (BEE)

The Bureau of Energy Efficiency

had embarked upon a new

scheme to formulate a National

Action Plan of competitive

promotion of “Energy

Efficiency” among the seven

major Industry and Service

sectors (Aluminum, Cement,

Power Generation, Petroleum

Refining, Petrochemicals, Steel

and Railways) comprising 128

“Designated Consumers”. The

essence of the proposed system

of monitoring and execution of

“Energy Efficiency” envisages

introduction of a PAT (Perform,

Achieve and Trade) Scheme.

Under this Scheme, each

Designated Consumer will be

assigned a target of energy

consumption reduction on

annual or periodic basis after

thorough study by a concerned

expert team of the entity. The

company/plant/consumer

achieving more than the jointly

agreed target (with BEE) will

earn credits for the excess

achieved beyond the target,

which will be equivalent to

tradable units on the basis of

the price of a kilolitre of fuel oil

at that time. This

company/plant/consumer can

trade the credits, partly or

wholly with another

company/plant/consumer

falling short of its designated

target during the same period.

The scheme is presently in the

stage of formulation of sector-

49th Annual Report

33

wise guidelines by BEE, which

will be finalized in consultation

with each sector. CMA, with its

nominated subject experts, is

very closely associated with

BEE in the formulation of this

scheme, which is expected to

come into force from 2011.

D. Issues with Ministry of Environment and Forests (MoEF)

During the year, the MoEF

issued a host of new

Notifications and Amendments

to earlier Notifications as

detailed below :

1. Environment Impact

Assessment, MoEF Gazette

Notification No.S.O. 195(E)

dated 19th January 2009.

2. Fly Ash Notification No.S.O.

2809 (E) dated 3rd

November 2009.

3. National Ambient Air Quality

Standards Notification GSR

826 (E) dated 16th

November 2009.

CMA had sent compiled

comments collected from

member companies on each of

them to MoEF.

Besides, Ministry of Mines and

Minerals had issued the Draft

Mines & Minerals (Development

& Regulations) Act by its

Notification No.16/57/2005-MVI

dated 5th August 2009 and had

discussed this Draft in detail

with all the stakeholders in a

two-day Workshop held in New

Delhi during 9th - 10th

October 2009.

The Clauses in these

Notifications seriously

impacting Cement Industry and

our comments sent to MoEF

and the Ministry of Mines are

given in Annexure-X.

E. Issues with Central Pollution Control Board (CPCB )

(a) Implementation of CPCB’s “Charter of Corporate Responsibility for Environmental

Protection” (CREP)

Polluting industries

(including core sector

industries, e.g., cement,

oil refining, steel etc) in

March 2003 concluded the

Fifth year of operation in

March 2008.

Present Status: The

pending items of CREP for

resolution are – ‘Evolving

Load based Standards’ (by

CPCB); ‘Evolving SO2 and

NOx Emission Standards’

34

(by CPCB and NCBM);

‘Development of

Guidelines for Control of

Fugitive Emissions in

Cement Plants’ (IIT and

NPC); ‘Preparing the

Policy on Use of Petroleum

Coke’ (by CPCB, NCBM,

BIS, Oil Refineries).

The pending activity

relating to “Development

of Guidelines for Control of

Fugitive Emissions in

Cement Plants” has been

executed satisfactorily in

association with cement

plants in all regions and

clusters. The Guidelines

were trimmed and

streamlined through

several discussion sessions

of the CMA Technical

Committee members with

NPC Executives and CPCB.

The Technical Committee

also organized Regional

awareness workshops in

all the regions and in

major clusters [CMA had

conducted 8 Workshops in

5 Regions (North, West-

Central, South, West and

East) and 3 Clusters

(Raipur, Chandrapur and

Nalgonda). 219 delegates

from 117 plants and

offices of cement

companies had attended

these Workshops].

(b) Hazardous Wastes (Storage, Handling and Trans boundary

Movement) Management Rules, 2009

The Rules promulgated to

act as facilitator for large-

scale recycling of

hazardous wastes,

particularly for co-

processing hazardous

combustibles in cement

kilns, has not yielded the

desired results. This is

mainly due to several

reasons, the more

significant of these are (a)

each state PCB interprets

the clauses in the Rules

differently, (b) Many

states do not permit

transboundary movement

of hazardous wastes for

use by a cement plant in a

neighbouring state, and

(c) the role of CPCB as

mediator, for solving

disputes between the

potential user and the

state PCB, has been found

to be ineffective in most

cases.

49th Annual Report

35

(c) Climate Change related Issues

The Copenhagen Summit

(COP 15) of UNFCCC held

in December 2009 had

planned a future course of

action for post-Kyoto

Protocol period beyond

2012 for mitigation of GHG

emission across the board

for all countries. Not yet a

legally binding Agreement,

the Summary Conclusions

in this summit envisage all

countries to reduce GHG

Emission by 15 to 20% in

course of 15 years (from

2005 to 2020). India,

being a signatory to Kyoto

Protocol has obvious

compulsions to follow the

conclusions both in action

and spirit, as declared in

the Summit by the Hon’ble

Minister of Environment

and Forests. The

Government of India has

taken up matching

measures for fulfilling the

obligations, and all sectors

of economy have been

advised to inventorise

annual GHG Emission and

adopt measures for its

progressive mitigation.

Inventorisation of GHG Emission by the Indian Cement Industry

Following the MoEF Report (May

2010) on “India: Greenhouse Gas

Emission 2007,” the Industry sector,

particularly the Energy Use sector,

plays a major role in GHG emission

Inventory of the Country. The Energy

Generation sector in India contributes

nearly 58% of GHG Emission, and the

Industry sector constitutes 22%,

Agriculture 17% and Waste Sector

3%. In the Industry sector, Cement

Industry contributes 6.8% of the total

GHG emission from India, followed by

the Steel Industry (6.2%). Cement

Industry has, therefore, a major role

to play not only in regular

inventorisation of GHG emission, but

also in its regular reduction.

CMA had initially taken part in the

NATCOM-I Project of the Government

of India under leadership of the MoEF

under the banner and fund support of

the UNFCCC. The NATCOM (National

Communication) Project is a

mandatory task for all developing

countries that are signatories to the

Kyoto Protocol, to provide UNFCCC

with annualized inventory of GHG

Emission. The NATCOM-I project for

India is a joint responsibility of a

clutch of Ministries related to GHG

Emission (Agriculture, forestry, fuel

use (coal and oil) , Mining, Power

36

generation and use, Transport, Health

and Family Planning, Urban

development etc) for GHG emission

inventorisation of all the sectors of the

Indian economy for the period 1990

to 2000. Under this project, CMA

provided the inventory of GHG

emission contribution from cement

and lime manufacturing and limestone

user industries for the aforestated

period. The Report from CMA had

been highly acclaimed by the MoEF for

its precision.

The 2nd Phase of NATCOM – II Project

of the Government of India envisages

GHG emission from all sectors of

Indian economy for the period 1995

to 2007 and CMA had been assigned

the task of GHG inventorisation for

the Indian Cement Industry and

limestone user sectors for the stated

period. The Project, which started in

January 2008 and had been initially

scheduled for completion by

December 2009, was subsequently

extended to June 2010. The Draft

Project Report prepared on the basis

of data provided through a structured

questionnaire by more than 87% of

Member Companies was presented to

the project authorities in March 2010

and was approved. The estimates by

CMA of GHG emission by the Indian

Cement Industry over the last decade

show marked decrease in the rate of

emission per tonne of cement. The

Final Report of all the sectors was

presented in the Meeting convened on

May 11, 2010 in New Delhi chaired by

the Hon’ble Minister of Environment

and Forests. After summing up of

presentations from different sectors

and conclusions derived, the status

regarding the Cement Industry stands

as follows:

1. The outlined Activity covers

extensive collection of data from

the Indian cement plants and

limestone use industries. Both

these industries operate in

organized and unorganized sectors

including small (and tiny) scale

outfits. The diversities in the scale

of operation, processes adopted,

and diversified products range led

us to conceptualize a flexible

model for data input and deriving

results for GHG Emission.

2. The Indian Cement Industry is a

complex combination of large, mini

and white cement plants. As on

31st December 2007, it comprised

136 major plants including 29

grinding units, 210 mini cement

plants (based on Vertical Shaft and

mini Rotary kilns) and 3 white

cement plants. The major plants

and white cement plants constitute

more than 97.5% of total capacity

49th Annual Report

37

and production and are spread

across 19 states.

3. The Questionnaire based data

collection Format, circulated

among all the 136 major plants

has so far elicited response from

119 (>87% of total cement

capacity in 2007).

4. Several anomalies and problems

were encountered in the course of

collecting and processing the data.

These are mainly (a) sourcing data

for years prior to 2000, (b) a good

number of plants or companies

shut down in late 90’s, (d) merger

and acquisition and change of

ownership of plants, (e) companies

and their owned plants (more than

40% of total capacity) affiliated to

WBCSD and following CSI

Protocol for a different system

(from UNFCCC) of data collection

and GHG Emission estimation, etc.

5. CMA developed a compatible

computerized software model for

feeding plant/Activity-wise, year-

wise input data (production, fuel

and power consumption, substitute

raw materials and fuel use) and

deriving results with the help of a

menu-driven module in the

software. It was formulated with

the algorithm of IPCC 2006

Guidelines for National Greenhouse

Gas Inventories, Tier-3 method of

calculation and, only in exceptional

and rare default cases, by applying

IPCC formula for Emission Factor.

At the same time, it is compatible

for CSI Module with some minor

additions or elimination.

6. The software model is dedicated

for estimation of CO2, NOx and SO2

emissions and also mitigation due

to use of alternative raw materials,

fuel, power (cogeneration, wind

power etc). The development of a

software compatible for all

different types of cement plants

and system of data inputs for

deriving GHG emissions took

considerable time and was ready

for use, after several trials and

cross-checks, only in end of

January 2010.

7. The Summary Results of the

current analysis are as follows:

(a) Cumulative GHG emission

from Process, fuel and power

use for large plants ranged

from 68.7 mn.t in 1995 for

62.08 mn.t cement production

to 142.89 mn.t for 164.45

mn.t cement production in

2007. The Year-wise

summary of Cement Emission

Factor shows a downward

trend from 1.106 tonnes CO2

eq in 1995 to 0.868 tonnes

CO2 eq in 2007 (Table-1).

38

Table - 1

Declining GHG Emission Trend in the

Indian Cement Industry (1990 –2007)

Year

Cement Production

(Million Tonnes)

Large Whole*

Plants Industry

GHG Emission

(Million Tonnes)

Large Whole

Plants Industry

Ratio

Cement : GHG

Large Whole

Plants Industry

1990** 44.87 53.84 1.20

1995@ 62.08 67.08 68.71 76.65 1.11 1.19

2000@ 95.95 102.20 89.15 98.89 0.93 0.97

2003@ 115.42 120.42 107.50 115.75 0.93 0.96

2004@ 125.07 130.57 115.33 123.49 0.92 0.94

2005@ 136.67 142.71 122.31 130.82 0.89 0.91

2006@ 152.99 158.99 132.61 141.66 0.87 0.89

2007@ 164.45 170.93 142.90 152.44 0.86 0.89

2007∋ 170.93 141.58 0.825

* Whole Industry includes Large, Mini and white cement plants

** Ref. CMA Report on NATCOM I -calculated for whole Industry

@ Ref. CMA Report on NATCOM II- calculated separately for Large, Mini and white cement plants

∋ Following NATCOM-II Guidelines, accounting for cement process & fuel use only.

(b) NOx and SO2 emissions data

could be collected from only

22 plants, as such

measurements had not been

regularly practised by most

plants till recently, because

the Norms for such emissions

were yet to be formulated by

CPCB. The year-wise volume

of these emissions have been

computed following IPCC

formula of 0.3 kg per tonne of

cement for SO2 emissions,

and EU Norms (3.5 kg per

tonne of cement) for NOx

emissions.

(c) Cogeneration-based power

generation in Indian cement

plants started in 2004. The

year-wise co-generated power

generation for the years 2004

to 2007 were computed and

equivalent GHG mitigation for

each of these years were

calculated adopting GHG

Emission factor reported by

CEA (Central Electricity

Authority), i.e. national

average of 1.1 t CO2/MWH.

The figures obtained show a

upward trend of mitigation

from 0.01 mn.t CO2 eq in

2004 to 0.08 mn.t CO2 eq in

2007.

(d) For limestone-use-based GHG

emission, National level data

were collected from the FIMI

(Federation of Indian Mineral

Industries) and IBM (Indian

Bureau of Mines). Year-wise

49th Annual Report

39

Limestone consumption data

by industries in the Organized

(Large Scale) Sector (Steel,

Paper, Fertilizer, Chemical,

Sugar, Aluminum, Foundry,

Glass etc) and also from

minor industries were

collected. The compiled data

were analyzed and GHG

emission in terms of CO2eq

for major industries and other

sectors were calculated.

The study also calculated the GHG

mitigation by major plants achieved

through substitution of clinker by fly

ash and slag in cement, and through

use of co-generated power and wind

power. The year-wise total mitigation

due to fly ash and slag substitution of

clinker shows progressive increase

from 4.1 mn.t in 1995 to 32.7 mn.t

in 2007. The details are provided in

Table-2 below:

Table-2

GHG Mitigation Activities by Major Plants of

Cement Industry: 1995 To 2007

No. Item/activity 1995 1996 1997 1998 1999 2000 2004 2005 2006 2007

1. Fly Ash Consumed

(Million Tonnes)

2.01 2.41 2.54 2.67 3.6 4.35 12.81 17.11 23.23 29.97

2. Slag Consumed

(Million Tonnes)

2.59 2.75 3.00 3.03 3.74 4.32 5.55 5.64 6.96 7.73

3 Total of Flyash and

Slag Consumed

4.60 5.16 5.54 5.70 7.34 8.67

18.36 22.75 30.19 37.70

4 Mitigation from

clinker substitution due 3 above

4.153 5.655 5.878 5.688 7.251 8.054 16.927 20.338 26.144 32.723

5(a) -Cogeneration,

units, MWH

Nil Nil Nil Nil Nil Nil 14347.40 64418 63971 75929

5(b) - Cogeneration, tonnes CO2 mitigation,

0.0158 0.071 0.07 0.0835

6(a) Wind Power generation-Capacity in MW

80.25 78.12 78.12 78.12 78.12

6(b) Actual Windpower

generated (MWH)

Load Factor range 22 to 44%:

Weighted Average 30% taken for all cases

0.210 0.205 0.205 0.205 0.205

6(c ) Mitigation-Wind

Power Generation (tonnes CO2)

0.231 0.226 0.226 0.226 0.226

Clean Development Mechanism (CDM) and Carbon Trading

Indian Cement Industry continues to

enjoy its iconic status among all

cement producing countries of the

World in the number of registered

CDM Projects and Carbon credits

applied for or earned so far. At

present, the number of CDM projects

of different types and scales from the

Indian Cement Industry stands at 41.

Of these, 27 projects are registered

40

by the UNFCCC CDM Executive Board,

and the remaining are at different

pre-registration stages. These 41

projects are estimated to fetch the

Industry 29.55 millions of Certified

Emission Reduction (CERs) which is

equivalent to a reduction of 29.55

mn.t of CO2 over a 10 years’ crediting

period starting from the inception of a

particular project beyond the year

2000 as per the Kyoto Protocol Treaty

that expires in 2012.

The CDM market has been depressive

over the last two years particularly in

respect of new registrations due to

the dual effect of global economic

meltdown and fall in crude oil price.

Despite this, the Indian Cement

Industry continues to be a leader in

the global cement sector and scores

well above the rest of the world in

terms of project numbers and CER

volume.

CMA TECHNICAL COMMITTEE AND TASK FORCES

The Technical Committee and the Two

Task Forces held Four Joint Meetings

during the year (41st Meeting on June

20, 2009 [Hyderabad], 42nd Meeting

on 18th September, 2009 [Mumbai],

43rd Meeting on 29th December,

2009 [Kolkata], and 44th Meeting on

25th March 2010 (Delhi).

Representatives from plants in their

respective regions attended these

Meetings enabling thereby

dissemination of information and

discussion on technology-related

Regulatory issues and in reaching

convergent decisions.

TECHNOLOGICAL INFORMATION DISSEMINATION &

PUBLICATIONS

Journal “Cement, Energy and

Environment”:

CMA published 4 issues of the Journal

covering April to June, combined issue

for July to September & October to

December, 2009 (Vol. 8, Nos. 3, 4)

and January to March, 2010 (Vol.9,

No.1)

The Journal continued its decade-long

Mission of information dissemination

among ground level technical

personnel and executives on rapidly

advancing spheres of Technology,

Energy and Environment. Articles

from eminent Indian and International

experts dealing with these topics and

also with recent advancements and

innovations, are regularly published.

Alongside, there are regular insertions

of summary of important articles and

news briefs culled from more than

120 reputed journals, published

brochures, monographs of companies

across the world, daily, weekly and

Fortnightly Newspapers on these

topics. A major part of the Journal has

been hosted on the CMA Website for

easy access by readers in the

Industry.

49th Annual Report

41

The Journal also serves as an

important vehicle of linkage and

communication with parallel Cement

Industry Associations of neighbouring

and major cement producing

countries – Arab Union, Australia,

Canada, China, Indonesia, Iran,

Japan, Turkey, USA etc. CMA is

maintaining regular exchange of

Journals among these Associations to

keep abreast of the developments in

other cement producing Countries.

� Cement for Construction – Consumers Guide

The English language version of

this Guide originally published in

2004 had gained fast popularity

among the broad spectrum of

stakeholders leading to 2 more

editions being published in 2005

and 2008. Sensing the popularity

and growing demand across India

of this 40-page Booklet, CMA

brought out a reprint of the English

language version this year. In

view of large-scale popularity

gained by this publication, CMA

had also brought out 8 Regional

Language Versions of the book in

Bengali, Gujarati, Hindi, Kannada,

Malyalam, Punjabi, Tamil, Telagu.

� Building Lasting Home – A Home Makers Guide

This 72 page book covers

established practice, recent

developments and technology

trends in concrete and construction

world for awareness and

knowledge base creation among a

host of stake holders ranging from

statutory bodies, construction

agencies and builders, and

individuals interested in

constructing own dwelling units.

� Construction, Maintenance and Upkeep of Concrete Building

The problems of maintenance and

upkeep of civil construction and

structures are multiplying manifold

over the years because of the

expanding gap between the

demand and supply of housing

units accentuating thereby the

need of larger life of existing

buildings. Following CSIR

estimates, India loses annually

around 10% of GDP due to

deterioration and decay of existing

infrastructure mainly due to (a)

wear and tear, (b) corrosion, (c)

natural calamity, (e) improper or

inadequate maintenance. Keeping

in view, the importance of

maintenance and upkeep of

concrete buildings for sustainable

development, CMA has brought out

this 75 page book for awareness

creation. The book covers all

aspects of maintenance of

buildings, namely, mechanism of

reinforced concrete structures,

causes of failures of structures,

safety factors, structural advice,

role and impact of interior and

exterior finishes, plumbing,

drainage, sanitation work,

42

electrical wiring etc. on durability

and sustainability of concrete

buildings.

Seminars and Conferences

During the Year, CMA organized/co-

sponsored/participated in Seminars/

Workshops/Conferences with a view

to promoting and sharing new

developments and technical

innovations with different

stakeholders in the long-term interest

of the Industry, as per the details

below:

11th NCB International Seminar

1. The seminar was organized by

National Council for Cement

and Building Materials with

CMA’s patronage in New Delhi

on 17 – 20 November, 2009.

Energy Efficiency

2. The 11th F L Smidth Energy

Awards Event organized by MP

and Chhattisgarh Cement

Manufacturers’ Association in

Bhopal on 15th April 2009.

3. Seminar on Energy

Conservation Technology in

Cement Industry organized by

NEDO, Japan in New Delhi on

6th November 2009.

4. Workshop on “International

Comparison of Industrial

Energy Efficiency” organized by

the Bureau of Energy Efficiency

(BEE) jointly with the

International Energy Agency

(IEA) in New Delhi during 27 –

28 January 2010.

5. Workshop on “Regional Analysis

of India in the Energy

Technology Perspective 2010”

organized by BEE in New Delhi

on 29th January 2010.

6. “Interactive Meet on Perform,

Achieve and Trade (PAT)

Scheme’ organized by BEE in

New Delhi on 25th February,

2010.

7. 6th Green Cementech 2010

organized by CII and CMA in

Hyderabad on 13 – 14 May

2010.

INDUSTRIAL RELATIONS

The Managing Committee is happy to

report that the Labour-Management

Relations in Cement Industry

continued to be cordial, harmonious

and healthy during the year under

review.

The Memorandum of Settlement

dated 26th April, 2005 signed

between the CMA and Cement

Workers’ Federation & Central Trade

Unions expired on 31st March, 2010.

Dr.G Sanjeeva Reddy, President,

Indian National Cement Workers’

Federation (INCWF) by his letter

dated 30th January 2010 gave a

notice for Termination of

Memorandum of Settlement dated

49th Annual Report

43

26th April, 2005 as required under the

provisions of Industrial Dispute Act

and Rules made there under. Further,

vide his letter dated 1st February

2010 he submitted new Charter of 36

Demands. The AITUC, HMS and CITU

vide their communication dated 15th

February 2010 had also jointly issued

Notice of Termination and enclosed

the same 36 Charter of Demands as

submitted by INCWF. The Akhil

Bhartiya Cement Mazdoor Mahasangh

(ABCMM) also submitted Notice of

Termination vide letter dated

31.1.2010 and submitted 31 Charter

of Demands vide letter dated

15.2.2010 (both the letters were

received by CMA on 3 March, 2010).

As was done hitherto and as advised

by President, CMA, a communication

dated 22nd February, 2010 was

addressed to Members that each

Member Company of the Association

may, after due consideration, advise

CMA clearly whether they authorize

CMA on their behalf to negotiate with

the Labour towards reaching wage

settlement. Members were also

requested to send their option either

favouring or otherwise for the

Industry-wide negotiation/settlement.

CMA member companies having about

77% of total capacity of member

companies authorized CMA to

negotiate with the Labour towards

reaching a settlement/understanding

with regard to the demands raised by

the above National Trade Unions.

The first Wage Negotiation meeting

with representatives of Trade Unions

was held on 12th April 2010 in

Mumbai. CMA was represented by

Shri N. Srinivasan (Vice President &

Managing Director, India Cements

Ltd).

The second meeting was held on 7th

June 2010 in New Delhi. CMA was

represented by Shri N. Srinivasan and

Shri Manoj Gaur at this meeting.

Third meeting was held on 20th July

2010 at Chennai wherein CMA was

represented by Shri N. Srinivasan.

Fourth meeting was held on 30th

August 2010 at Mumbai. Shri N.

Srinivasan, Shri Manoj Gaur and

Shri O.P. Puranmalka represented

CMA at this meeting. The discussions

are in progress.

CMA HYDERABAD OFFICE

As reported last year, in March, 2009

the Managing Committee approved

the premises for CMA Hyderabad

Office, which was finalized by a Group

of Members on behalf of CMA,

consisting of S/Shri K C Jain, P Pratap

Reddy, A K Kejriwal, Rakesh Singh

and I Gopinath.

The Sale Deed for the premises (2395

Sq.ft. at a cost of Rs.195.60 Lakhs

plus Stamp Duty amounting to

Rs.18.58 Lakhs) was executed in

November, 2009.

The Managing Committee at its

meeting held on 30th November,

44

2009 decided that the same

Committee under the Chairmanship of

Shri K C Jain, which was authorized to

finalise the purchase of premises at

Hyderabad, may also pursue the task

in respect of Interiors, Furnitures etc.

of the Hyderabad Office.

The Committee engaged the services

of M/s. Fountainhead Design

(Architecture & Interiors Firm) to

prepare the Interiors plan. The Plan

and Estimates were placed before HPC

at its meeting held on 9th April 2010.

The estimated time for completion of

the interior work is 2.5 months to 3

months from the date of placement of

order. Work orders for Design and

Consultancy and Interiors and

Furnitures have been placed on 18th

May 2010. The interior work has since

been completed and the furniture

procured. The office is now ready for

use.

Your Managing Committee is hopeful

that CMA Hyderabad Office will

become functional very soon.

CMA ON-LINE PROJECT

As Mentioned in the last year’s Annual

Report M/s Coromandel Infotech India

Ltd, were awarded the project in

March 2009. The Project requires

close coordination of CMA and

Member Companies with M/s

Coromandel Infotech India Ltd.

A number of Meetings were held

involving Members of Cement

Companies and the Consultants for

testing and validating the project and

its adaptability to our requirements.

In the course of such interaction,

several very useful suggestions were

received from the Cement Companies’

representatives. These were duly

incorporated by the Consultants. The

Beta Version of the Software has been

finalized and is currently under trial

run involving three Member

Companies to test the working of the

system and fine-tuning the same

before it is adapted for wider use by

all the Members.

RESIGNATION OF ACC LTD AND AMBUJA CEMENTS LTD

ACC Ltd was one of the founder

Members of CMA, which came into

existence in 1961, while Ambuja

Cements Ltd joined the Association as

Member in 1983.

Both these organizations resigned

from the Membership of the

Association at the end of October

2009. The Managing Committee at its

meeting held on 30th November 2009

accepted the resignation of ACC Ltd

and Ambuja Cements Ltd.

PARLIAMENTARY STANDING

COMMITTEE MEETING

The Parliamentary Standing

Committee on Commerce while

examining the Performance of the

Cement Industry desired to have the

views of the Cement Industry and

requested representatives of CMA

including top ten cement

manufacturers to appear before the

49th Annual Report

45

Committee on 16th December 2009.

A request had also been made to the

Industry to send a Note covering the

various aspects of the Cement

Industry that are likely to be

presented before the Committee,

latest by 15th December 2009 for

circulation to Members of the

Committee.

A Note had been accordingly sent to

Rajya Sabha Secretariat on

11.12.2009. The meeting was,

however, postponed to 11th January

2010.

President, CMA, along with a few

Senior Members of the Association

appeared before the Committee,

during which, a Presentation was

made by Shri Saurabh Misra. During

the session, President, CMA Smt.

Vinita Singhania, Shri Manoj Gaur,

Shri H.M. Bangur, Shri T.S.

Raghupathy made very effective and

positive contribution through their

intervention and provided replies and

clarifications to the points raised by

the Members of the Standing

Committee.

As a sequel, a Note to the Rajya

Sabha Secretariat was sent on 13th

January 2010 covering the

clarifications on the estimated saving

of 14% fuel on Cement Concrete

Roads compared to Bituminous Roads

and the basis of calculation on the

total savings that could be effected if

the Government went in for Cement

Concrete Roads, as desired by

Chairman of the Committee.

CMA PUBLICATIONS

During the year 2009-10, CMA

brought out/ updated the following

publications/ periodicals:

� Indian Cement Industry - Statistics

(2009)

� Cement, Energy and Environment

– Quarterly

� Cement News Digest – Weekly

� Cement Journal – Quarterly

� Handbook on Cement Concrete

Roads (Revised)

� Construction, Maintenance and

Upkeep of concrete Building

� DOs and DONTs for Cement

Concrete Road Construction

� Building Lasting Homes

A detailed list of CMA publications is

given in Annexure-XI.

AUDIT

The Accounts of the Association for

the year ended 31st March 2010 have

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

Chartered Accountants.

New Delhi (Vinita Singhania)

August 2010 President

49th Annual Report

46

LIST OF ANNEXURES

ANNEXURE-I Capacity Additions during 2009-10

ANNEXURE-II Performance of Cement Companies (Company-wise/Unit-wise)

ANNEXURE-III Performance of Cement Industry (Including Mini and White sector)

Performance of Cement Industry (Large Plants)

Region-wise Capacity and Production (Large Plants)

ANNEXURE-IV Chairmen/Co-Chairmen of CMA Committees

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

ANNEXURE-VI Consumption of Coal/Fuel including Captive Power Plants

ANNEXURE-VII Year-wise Cement Despatches by Rail/Road and Sea

ANNEXURE-VIII Country-wise Cement and Clinker Export

ANNEXURE-IX Cement Concrete Roads - Broad details of action taken and results obtained

ANNEXURE-X Cement Industry’s comments on Notifications of the MoEF and the Ministry of Mines

ANNEXURE-XI List of CMA Publications

*****

47

ANNEXURE-I

CAPACITY ADDITIONS DURING 2009-10

(Mn. t)

Name of the Plant State Month of Commissioning

Capacity Existing

Capacity Added / Derated

Total

(a) New

India Cements - Parli (G) MAH Apr 09 - 1.10 1.10

Dalmia Cement-Ariyalur T.N. Jun 09 - 2.50 2.50

Madras Cmts-Uthiramerur (G) T.N. Jul 09 - 0.60 0.60

Madras Cmts-Salem (G) T.N. Sep 09 - 0.60 0.60

J.K. Muddapur KAR Sep 09 - 3.00 3.00

Jaypee-Kutch GUJ. Sep 09 - 1.20 1.20

Jaypee-Sidhi M.P. Sep 09 - 1.00 1.00

Jaypee-Roorkee (G) UTK Jan 10 - 1.20 1.20

Jaypee-Wanakbori (G) GUJ. Jan 10 - 1.50 1.50

Madras Cmts-Kolaghat (G) W.B. Feb 10 - 1.00 1.00

Grasim-Kotputli RAJ. Mar 10 - 3.10 3.10

Jaypee-Bagheri (B & G) H.P. Mar 10 - 1.75 1.75

Grasim-Aligarh (G) U.P. Mar 10 - 1.30 1.30

Total – (a) 19.85

(b) Expansion

Shriram Cements RAJ. Apr 09 0.20 0.20 0.40

OCL India - Rajgangpur Orissa Apr 09 1.80 2.20 4.00

OCL India – Kapilas (G) Orissa Apr 09 0.90 0.45 1.35

India Cements – Chilamkur A.P. Apr 09 1.45 0.01 1.46

India Cements – Yerraguntla A.P. Apr 09 0.52 0.21 0.73

India Cements – Raasi A.P. Apr 09 2.30 0.20 2.50

India Cements – Visaka A.P. Apr 09 1.12 1.28 2.40

Chettinad Cement-Karur T.N. Apr 09 0.60 0.40 1.00

Chettinad Cement-Karikalli T.N. Apr 09 1.20 0.60 1.80

India Cements - Sankarnagar T.N. Apr 09 1.80 0.25 2.05

India Cements - Sankaridurg T.N. Apr 09 0.60 0.26 0.86

JK Lakshmi Cement Ltd RAJ. Aug 09 3.40 0.80 4.20

Vasvadatta Cement KAR Aug 09 4.10 1.65 5.75

Orient Cement-Jalgaon (G) MAH Oct 09 1.00 1.00 2.00

Binani Cement-Sirohi RAJ. Dec 09 4.60 0.25 4.85

Jaypee-Chunar (G) U.P. Dec 09 1.50 0.50 2.00

Jaypee-Dalla U.P. Dec 09 0.43 0.07 0.50

Orient Cement A.P. Jan 10 2.40 0.60 3.00

Chettinad Cement-Karur T.N. Jan 10 1.00 0.60 1.60

Chettinad Cement-Karikalli T.N. Jan 10 1.80 0.20 2.00

Chettinad Cement-Ariyalur T.N. Jan 10 2.00 2.60 4.60

Grasim-Aditya Cement – II RAJ. Mar 10 1.60 1.60 3.20

UltraTech APCW – II A.P. Mar 10 2.40 1.20 3.60

Total – (b) 17.13

Total – (a)+(b) 36.98

49th Annual Report

48

ANNEXURE-II

PERFORMANCE OF CEMENT COMPANIES (COMPANY-WISE/UNIT-WISE)

(2009-10)

(000' Tonnes)

Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement

(Monthly Prodn. Ground Prodn. Desp.

Add Up)

Andhra Cements Ltd.

1 Vizag (G) Vishakhapatnam AP 622.00 - 157.19 428.02 427.09

2 Nadikude Durga Cmt Nadikude AP 800.00 470.43 433.23 562.92 562.60

Total - Andhra Cements Ltd. 1422.00 470.43 590.42 990.94 989.69

Binani Cement Ltd.

3 Binani Cmt-Sirohi Sirohi Road RAJ. 4683.34 4406.48 3623.73 4162.89 4163.43

4 Binani Cmt-Sikar (G) Neem Ka Thana RAJ. 1400.00 - 778.54 1117.21 1125.76

Total - Binani Cement Ltd. 6083.34 4406.48 4402.27 5280.10 5289.19

Birla Corporation Ltd.

5 Birla Vikas Satna MP 1550.00 2081.99 1248.94 1711.52 1682.22

6 Satna Cement

7 Birla Cement Chittorgarh RAJ. 2000.00 1788.91 1796.49 2363.55 2362.77

8 Chanderia Cement

9 Birla Cmt-RaebareliG Raebareli UP 630.00 - 430.87 630.78 627.16

10 Durgapur (G) Durgapur W.B. 600.00 - 289.71 603.95 603.25

11 Durga Hitech Cmt (G) Durgapur W.B. 1000.00 - 281.04 388.31 387.45

Total - Birla Corporation Ltd. 5780.00 3870.90 4047.05 5698.11 5662.85

Cement Corporation of India Ltd.

12 Adilabad Adilabad AP 400.00 Nil Nil Nil Nil

13 Akaltara Akaltara CTG 400.00 Nil Nil Nil Nil

14 Bokajan Bokajan ASSAM 200.00 140.50 143.88 150.10 151.10

15 Charkhi Dadri Charkhi Dadri HAR 172.00 Nil Nil Nil Nil

16 Kurkunta Kurkunta KAR 200.00 Nil Nil Nil Nil

17 Mandhar Mandhar CTG 380.00 Nil Nil Nil Nil

18 Neemuch Neemuch MP 400.00 Nil Nil Nil Nil

19 Rajban Rajban HP 200.00 165.15 163.75 187.36 188.54

20 Tandur Tandur AP 1000.00 653.75 621.33 630.77 627.41

21 Delhi (G) Tughalakabad DELHI 500.00 - Nil Nil Nil

Total - Cement Corporation of India Ltd. 3852.00 959.40 928.96 968.23 967.05

Cement Manufacturing Co. Ltd.

22 Cement Manu. Co. Ltd Lumshnong MEG. 594.00 602.22 295.08 401.67 401.13

23 Megha T & E (P)Ltd G Lumshnong MEG. 462.00 - 351.39 516.91 516.94

Total - Cement Manufacturing Co. Ltd. 1056.00 602.22 646.47 918.58 918.07

Century Textiles & Industries Ltd.

24 Century Cement Tilda CTG 2100.00 1389.92 1346.33 2055.22 2052.41

25 Maihar Cement Maihar MP 3800.00 2784.20 2639.25 3760.28 3728.93

26 Manikgarh Cmt Manikgarh MAH. 1900.00 1459.90 1249.30 1767.71 1768.91

Total - Century Textiles & Industries Ltd. 7800.00 5634.02 5234.88 7583.21 7550.25

Chettinad Cement Corporation Ltd.

27 Chettinad-Karur Karur TN 1150.00 724.65 747.26 993.40 993.26

28 Chettinad-Karikkali Karikkali TN 1850.00 1127.64 1155.08 1647.98 1654.95

29 Chettinad-Ariyalur Keelapaluvur TN 2650.00 1177.00 1107.44 1362.09 1352.55

Total - Chettinad Cement Corporation Ltd. 5650.00 3029.29 3009.78 4003.47 4000.76

49

Company-wise (000' Tonnes)

Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement

(Monthly Prodn. Ground Prodn. Desp.

Add Up)

Dalmia Cement(Bharat) Ltd.

30 Dalmia - Dalmiapuram Dalmiapuram TN 4000.00 2510.54 2315.24 3114.19 3117.67

31 Dalmia - Kadapa Jammalamadugu AP 2500.00 743.98 675.67 749.11 755.86

32 Dalmia - Ariyalur Thamaraikulam TN 2083.34 115.31 188.45 207.61 202.12

Total - Dalmia Cement(Bharat) Ltd. 8583.34 3369.83 3179.36 4070.91 4075.65

Grasim Industries Ltd.

33 Rajashree-Malkhed Malkhed KAR 3200.00 4019.15 2554.05 2960.98 2944.06

34 Rajashree-Hotgi (G) Hotgi MAH. 1800.00 - 1499.32 1773.43 1768.58

35 Vikram Cement Jawad Road MP 3000.00 3583.07 3093.36 3999.98 3987.43

36 Aditya Cement-I&II Shambhupura RAJ. 3533.34 3941.41 2461.30 3090.27 3073.58

37 Grasim Cement-Raipur Raipur CTG 2500.00 1813.01 1334.29 2284.10 2282.35

38 Grasim South Reddipalayam TN 1400.00 1010.91 1005.32 1363.02 1372.80

39 Grasim-Bhatinda (G) Bhatinda PUB 1750.00 - 1117.61 1743.16 1745.09

40 Grasim - Dadri (G) Dadri UP 1300.00 - 587.95 847.07 847.03

41 Grasim - Panipat (G) Panipat HAR 1300.00 - 701.92 1018.29 1031.98

42 Grasim Cmt-Kotputli Kotputli RAJ. 258.33 179.09 62.81 76.62 68.67

43 Grasim Cmt-Aligarh G Koil UP 108.33 - 25.37 36.58 38.13

Total - Grasim Industries Ltd. 20150.00 14546.64 14443.30 19193.50 19159.70

HMP Cements Ltd.

44 Porbandar Porbandar GUJ. 198.00 Nil Nil Nil Nil

45 Shahabad Shahabad KAR 476.00 Nil Nil Nil Nil

Total - HMP Cements Ltd. 674.00 Nil Nil Nil Nil

Heidelberg Cement(I) Ltd.

46 HCIL-Ammasandra Ammasandra KAR 570.00 136.82 85.12 172.55 175.85

47 HCIL-Damoh Damoh MP 1025.00 1269.48 723.86 1159.38 1160.24

48 HCIL-Jhansi (G) Jhansi UP 500.00 - 490.57 762.28 757.95

49 HCIL-Dolvi (G) Raigad MAH. 1000.00 - 323.35 582.63 580.63

Total - Heidelberg Cement(I) Ltd. 3095.00 1406.30 1622.90 2676.84 2674.67

The India Cements Ltd.

50 Sankarnagar Talaiyuth TN 2050.00 1190.92 1193.19 1650.85 1651.89

51 Sankaridurg Sankaridurg TN 860.00 437.27 381.11 591.41 593.49

52 Chilamkur Works Chilamkur AP 1460.00 1109.64 1051.30 1239.68 1241.21

53 Dalavoi Trichy TN 1850.00 1160.42 1130.60 1664.11 1662.15

54 Visaka Cement Tandur AP 2400.00 1896.00 1089.67 1258.67 1255.34

55 Yerraguntla Yerraguntla AP 730.00 561.80 489.93 598.60 601.64

56 Raasi Cement Wadapally AP 2500.00 2325.90 1824.58 2197.15 2194.32

57 Vallur (G) Vallur TN 1100.00 - 563.91 813.10 821.52

58 Parli (G) Parli MAH. 1100.00 - 362.44 477.54 470.93

Total - The India Cements Ltd. 14050.00 8681.95 8086.73 10491.11 10492.49

J.K. Group

59 J.K-Nimbahera Nimbahera RAJ. 3300.00 2411.45 2120.77 2606.31 2594.34

60 J.K-Mangrol Mangrol RAJ. 750.00 685.02 807.26 988.08 987.10

61 J.K-Gotan Gotan RAJ. 470.00 206.02 260.91 376.83 376.44

62 J.K. Muddapur Mudhol KAR 1750.00 326.11 219.40 313.78 305.50

63 JK Lakshmi Cmt Ltd Sirohi Road RAJ. 3933.34 3523.52 2815.01 3602.41 3600.66

64 JK Lakshmi-Kalol (G) Kalol GUJ. 547.50 - 361.23 554.35 549.47

65 J.K Udaipur Udyog Udaipur RAJ. 900.00 Nil Nil Nil Nil

Total - J.K. Group 11650.84 7152.12 6584.58 8441.76 8413.51

49th Annual Report

50

Company-wise (000' Tonnes)

Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement

(Monthly Prodn. Ground Prodn. Desp.

Add Up)

Jaypee Group

66 Dalla Dalla UP 454.67 1372.60 106.21 145.75 140.52

67 Chunar (G) Chunar UP 1666.67 - 1213.35 1701.96 1698.94

68 Jaypee Rewa Rewa MP 3000.00 3204.38 2487.50 3218.12 3171.28

69 Jaypee Bela Bela MP 2400.00 2042.42 1912.16 2387.17 2000.66

70 Jaypee-Sadva Khurd (B) Sadva Khurd UP 600.00 - - 718.70 726.26

71 Jaypee Ayodhya (G) Tanda UP 1000.00 - 707.81 1031.99 1027.03

72 Jaypee - Panipat (G) Panipat HAR 1000.00 - 712.99 1012.50 998.91

73 Jaypee-Sidhi Sidhi MP 583.34 1166.24 315.97 405.09 317.79

74 Jaypee-Kutch Sewagram GUJ. 700.00 447.63 264.70 274.98 271.68

75 Jaypee-Wanakbori (G) Sonipur GUJ. 375.00 - 55.12 72.14 51.74

76 Jaypee-Roorkee (G) Roorkee UTK 300.00 - 88.11 114.09 103.36

77 Jaypee-Bagheri (B&G) Bagheri HP 145.83 - 78.90 141.69 86.09

Jaypee-Baga (@) Baga HP - 143.68 - - -

Bhilai Jaypee (clk) Babupur MP - 248.29 - - -

Total - Jaypee Group 12225.51 8625.24 7942.82 11224.18 10594.26

Kesoram Industries Ltd.

78 Kesoram Cement Ramagundam AP 1500.00 1161.20 1074.67 1379.38 1373.50

79 Vasvadatta Cement Sedam KAR 5200.00 4298.39 3715.86 4206.22 4185.61

Total - Kesoram Industries Ltd. 6700.00 5459.59 4790.53 5585.60 5559.11

Lafarge India Pvt. Ltd.

80 Arasmeta Cement Bilaspur CTG 1600.00 1593.35 1119.59 1723.85 1719.40

81 Lafarge-Sonadih Sonadih CTG 550.00 1886.91 313.30 499.27 499.25

82 Lafarge-Jojobera(G) Singbhum JHK 3400.00 - 1766.60 3459.70 3460.16

83 Lafarge-Mejia (G) Mejia W.B. 1000.00 - 464.72 676.60 679.33

Total - Lafarge India Pvt. Ltd. 6550.00 3480.26 3664.21 6359.42 6358.14

Madras Cements Ltd.

84 Ramasamyraja Nagar R.S.Raja Nagar TN 1800.00 690.45 1021.23 1439.29 1439.18

85 Jayantipuram Jaggayyapet AP 2000.00 1902.26 1604.51 1996.11 1992.25

86 Alathiyur Works-I&II Alathiyur TN 3120.00 2154.40 2015.77 2793.55 2775.77

87 Madras Cmts-Ariyalur Govindapuram TN 2000.00 1216.95 1000.69 1181.66 1154.00

88 Madras-Uthiramerur G Uthiramerur TN 450.00 - 153.53 208.90 211.24

89 Madras Cmts-Salem G Valapadi TN 350.00 - 115.23 156.97 152.80

90 MadrasCmts-KolaghatG Kolaghat W.B. 166.67 - 13.34 17.10 13.58

Total - Madras Cements Ltd. 9886.67 5964.06 5924.30 7793.58 7738.82

Malabar Cements Ltd.

91 Malabar Cements Palghat KERLA 420.00 341.01 298.49 410.55 415.33

92 Malabar Cements (G) Alappuzha KERLA 200.00 - 4.72 6.38 6.55

Total - Malabar Cements Ltd. 620.00 341.01 303.21 416.93 421.88

Mangalam Cement Ltd.

93 Mangalam Cement Morak RAJ. 2000.00 1636.54 1386.39 1636.82 1626.12

94 Neer Shree Cement Morak RAJ.

Total - Mangalam Cement Ltd. 2000.00 1636.54 1386.39 1636.82 1626.12

(@) - Only Clinker Production started.

51

Company-wise (000' Tonnes)

Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement

(Monthly Prodn. Ground Prodn. Desp.

Add Up)

Mehta Group

95 Saurashtra Cement Ranavav GUJ. 1501.00 1242.71 1106.49 1226.88 1236.82

96 Gujarat Sidhee Cmt Veraval GUJ. 1200.00 1286.72 1208.68 1345.08 1341.56

Total - Mehta Group 2701.00 2529.43 2315.17 2571.96 2578.38

OCL India Ltd.

97 OCL India-Rajgangpur Rajgangpur ORISS 4000.00 1174.61 1016.90 2092.62 2091.62

98 OCL India-Kapilas G Kapilas ORISS 1350.00 - 465.84 942.44 940.54

Total - OCL India Ltd. 5350.00 1174.61 1482.74 3035.06 3032.16

Orient Cement

99 Orient Cement Devapur AP 2550.00 2345.72 1426.67 2006.96 1995.18

100 Orient Cmt-Jalgaon G Jalgaon MAH. 1500.00 - 732.79 1052.12 1048.56

Total - Orient Cement 4050.00 2345.72 2159.46 3059.08 3043.74

Penna Cement Industries Ltd.

101 Penna-Tadipatri I&II Tadipatri AP 1500.00 1200.06 1189.94 1421.24 1423.98

102 Penna-Ganeshpahad Ganeshpahad AP 1000.00 965.25 970.57 1170.79 1177.88

103 Penna-Boyareddypalli Boyareddypalli AP 2000.00 1189.31 1221.34 1496.33 1502.24

Total - Penna Cement Industries Ltd. 4500.00 3354.62 3381.85 4088.36 4104.10

Rain Commodities Ltd.

104 Rain Comdt.Un-I Ramapuram AP 1400.00 830.65 803.40 1036.08 1033.62

105 Rain Comdt.UnII LN 1 Racherla AP 600.00 348.01 316.37 440.67 440.65

Rain Comdt.UnII LN 2 Racherla AP 2000.00 1010.02 908.04 934.59 929.99

Total - Rain Commodities Ltd. 4000.00 2188.68 2027.81 2411.34 2404.26

Tamil Nadu Cements Corporation Ltd.

106 Alangulam Alangulam TN 400.00 165.57 186.09 214.51 213.04

107 Ariyalur Ariyalur TN 500.00 450.01 463.22 510.23 510.41

Total - Tamil Nadu Cements Corporation Ltd. 900.00 615.58 649.31 724.74 723.45

UltraTech Cement Ltd.

108 UltraTech - ACW Chandrapur MAH. 3600.00 2761.51 2635.10 3316.23 3322.76

109 UltraTech - JCW (G) Jharsuguda ORISS 1000.00 - 665.65 972.89 974.77

110 UltraTech - HCW Hirmi CTG 1900.00 2357.67 1597.52 2205.87 2206.98

111 UltraTech - Gujarat Pipavav GUJ. 5800.00 5289.60 3370.58 4024.71 4033.14

112 UltraTech-APCW-I&II Tadpatri AP 4500.00 3634.51 2231.03 2817.49 2785.28

113 UltraTech - ARCW (G) Arakonam TN 1100.00 - 726.88 950.13 950.40

114 UltraTech - WBCW (G) Durgapur W.B. 1200.00 - 709.51 1097.96 1092.99

115 UltraTech-Ginigera G Ginigera KAR 1300.00 - 407.39 750.88 741.65

116 Jafrabad Jafrabad GUJ. 500.00 1499.87 382.44 424.24 424.99

117 Magdalla (G) Magdalla GUJ. 700.00 - 542.25 692.04 696.60

118 Ratnagiri (G) Ratnagiri MAH. 400.00 - 365.47 384.77 382.13

Total - UltraTech Cement Ltd. 22000.00 15543.16 13633.82 17637.21 17611.69

Zuari Cement Ltd.

119 Zuari Cement Krishna Nagar AP 2200.00 1750.48 1720.07 2015.46 2016.68

120 Sri Vishnu Cement Sitapuram AP 1200.00 942.66 974.23 1178.80 1180.93

Total - Zuari Cement Ltd. 3400.00 2693.14 2694.30 3194.26 3197.61

49th Annual Report

52

Company-wise (000' Tonnes)

Sl. No. Company/Plant Location State Capacity Clinker Clinker Cement Cement

(Monthly Prodn. Ground Prodn. Desp.

Add Up)

Others

121 Shree Digvijay-Sikka Sikka GUJ. 1075.00 1010.24 902.93 1031.23 1031.45

122 Shree Cement Beawar RAJ. 9100.00 8045.10 7006.53 9377.61 9361.23

123 Prism Cement Satna MP 2000.00 2317.92 1881.73 2568.32 2564.64

124 Lemos Cement Khalari JHK 109.00 Nil Nil Nil Nil

125 Kistna Kistna AP 214.00 Nil Nil Nil Nil

126 Bagalkot Cmt&Ind Ltd Bagalkot KAR 297.00 118.37 116.07 164.70 162.46

127 J&K Ltd Khrew J&K 200.00 142.89 155.30 162.53 163.64

128 Kalyanpur Cement Banjari BIHAR 1000.00 454.45 436.25 675.74 676.01

129 K.C.P. Ltd Macherla AP 660.00 639.41 727.51 807.65 807.65

130 Mawmluh Cherra Cherrapunji MEG. 200.00 61.06 59.43 60.55 60.61

131 Panyam Cements Bugganipalle AP 531.00 428.43 374.27 433.03 431.84

132 Sone Valley Japla JHK 254.00 Nil Nil Nil Nil

133 Shriram Cements Kota RAJ. 400.00 266.60 262.70 367.50 365.44

134 Sanghi Indus. Ltd. Abdasa Taluka GUJ. 2600.00 1878.75 1681.69 1846.01 1851.85

135 My Home Indus. Ltd. Mellacheruvu AP 3200.00 2312.30 2123.10 2632.98 2625.55

136 Meghalaya Cmts. Ltd. Lumshnong MEG. 297.00 523.39 391.99 557.62 555.98

Total - Others 22137.00 18198.91 16119.50 20685.47 20658.35

Grand Total 196866.70 128280.13 121252.12 160740.77 159845.95

G - Grinding Unit

B - Blending Unit

B & G - Blending & Grinding Unit

Clk - Clinkerisation Unit

53

ANNEXURE-III

PERFORMANCE OF CEMENT INDUSTRY (Including Mini and White Sector)

(Mn.t)

Year Capacity at Cement the Year End 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 2008-09 230.61 187.61 2009-10 * 226.88 166.74

* Excludes data from two cement companies that discontinued Membership with CMA during 2009-10.

0

50

100

150

200

250

89-90

90-91

91-92

92-93

93-94

94-95

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

Capacity Production

Year

Mn

.t.

49th Annual Report

54

ANNEXURE-III (Contd.)

PERFORMANCE OF CEMENT INDUSTRY (Large Plants)

(Mn.t)

Year Capacity at Cement

the Year End Production

VII Plan

1989-90 (Terminal Year) 57.15 42.92

Annual Plans

1990-91 59.31 45.75

1991-92 61.73 50.61

VIII Plan

1992-93 65.36 50.72

1993-94 71.68 54.09

1994-95 78.52 58.35

1995-96 87.18 64.54

1996-97 96.68 69.98

IX Plan

1997-98 101.93 76.74

1998-99 107.98 81.67

1999-00 111.16 94.21

2000-01 121.94 93.61

2001-02 134.94 102.40

X Plan

2002-03 139.38 111.35

2003-04 145.95 117.50

2004-05 153.60 127.57

2005-06 160.00 141.81

2006-07 167.79 155.64

XI Plan

2007-08 198.10 168.31

2008-09 219.51 181.61

2009-10 * 215.78 160.74

REGION-WISE CAPACITY AND PRODUCTION (Large Plants)

(Mn.t.)

Region 2005-06 2006-07 2007-08 2008-09 2009-10 *

Inst. Cap.

Prodn. Inst. Cap.

Prodn. Inst. Cap.

Prodn. Inst. Cap.

Prodn. Inst. Cap.

Prodn.

North 31.12 29.67 33.77 32.10 47.47 36.46 49.94 41.20 45.54 34.15

East 24.22 20.05 25.35 22.07 29.00 23.85 31.30 26.00 27.10 21.38

South 51.09 44.88 54.09 50.15 61.81 54.23 77.90 59.90 88.51 59.28

West 29.08 24.93 29.28 27.28 32.17 28.75 32.72 28.46 28.62 20.85

Central 24.49 22.28 25.30 24.04 27.65 25.02 27.65 26.05 26.01 25.08

Total 160.00 141.81 167.79 155.64 198.10 168.31 219.51 181.61 215.78 160.74

* Excludes data from two cement companies that discontinued Membership with CMA during 2009-10.

55

ANNEXURE-IV

CHAIRMEN/CO-CHAIRMEN OF CMA COMMITTEES

CMA HIGH POWER COMMITTEE

Mrs. Vinita Singhania Chairman

President, CMA & Managing Director JK Lakshmi Cement Ltd. Shri M.A.M.R. Muthiah Co-Chairman Vice President, CMA & Managing Director Chettinad Cement Corpn.Ltd

CMA COMMITTEE ON COAL MATTERS

Shri P.K. Chand Chairman Chief Financial Officer Birla Corpn. Ltd.

CMA TECHNICAL COMMITTEE

Shri S.K. Wali

Chairman Wholetime Director,

JK Lakshmi Cement Ltd.

CMA ENERGY TASK FORCE

(Part of Technical Committee)

Dr. K.C. Narang Chairman Advisor Dalmia Cement (Bharat) Ltd.

49th Annual Report

56

CMA ENVIRONMENTAL TASK FORCE (Part of Technical Committee)

Shri L. Rajasekar Chairman Jt. Executive President (Technology & Research Centre) Grasim Industries Ltd

Shri P.L. Subramaniam Co-Chairman Sr. President (Operations) The India Cements Ltd

CMA FINANCE/LEGAL MATTERS COMMITTEE

Shri R.G. Bagla Chairman Group Executive President J.K. Cement Works

Shri A.V. Dharmakrishnan Co-Chairman Executive Director (Finance) Madras Cements Ltd

CMA COMMITTEE ON RAILWAY MATTERS

Shri Kamal Kishore Chairman President (Cordn.) Maihar Cement

Shri Rahul Kumar Co-Chairman

Chief Financial Officer Jaiprakash Associates Ltd

57

ANNEXURE-V

MONTH-WISE COAL RECEIPT AGAINST FSA/LINKAGE

(2005-06 to 2009-10)

(Mn.t)

Month 2009-10 * 2008-09 2007-08 2006-07 2005-06

April 0.91 1.09 1.25 1.26 1.26 (1.13) (1.54) (1.42) (1.34) (1.37)

May 0.86 0.96 1.10 1.26 1.20

(1.13) (1.54) (1.42) (1.34) (1.37)

June 0.85 1.17 1.21 1.27 1.00 (1.13) (1.54) (1.42) (1.34) (1.37)

Sub-Total 2.62 3.22 3.56 3.79 3.46 (3.39) (4.62) (4.26) (4.02) (4.11)

July 0.92 1.09 1.30 1.27 1.16

(1.13) (1.50) (1.33) (1.25) (1.34)

August 0.98 1.06 1.30 1.12 1.32 (1.13) (1.50) (1.33) (1.25) (1.34)

September 0.86 1.10 1.26 1.12 1.17 (1.13) (1.50) (1.33) (1.25) (1.34)

Sub-Total 2.76 3.25 3.86 3.51 3.65

(3.39) (4.50) (3.99) (3.75) (4.02)

October 0.97 1.27 1.34 1.16 1.25 (1.13) (1.54) (1.35) (1.29) (1.43)

November 0.94 1.33 1.20 1.19 1.34

(1.13) (1.54) (1.35) (1.29) (1.43)

December 0.80 1.37 1.12 1.15 1.35 (1.13) (1.54) (1.35) (1.29) (1.43)

Sub-Total 2.71 3.97 3.66 3.50 3.94 (3.39) (4.62) (4.05) (3.87) (4.29)

January 0.90 1.42 1.18 1.17 1.32

(1.13) (1.54) (1.35) (1.28) (1.56)

February 0.90 1.21 1.13 1.18 1.15 (1.13) (1.54) (1.35) (1.28) (1.56)

March 0.89 1.22 1.17 1.28 1.29 (1.13) (1.54) (1.35) (1.28) (1.56)

Sub-Total 2.69 3.85 3.48 3.63 3.76 (3.39) (4.62) (4.05) (3.84) (4.68)

Grand Total 10.78 14.29 14.56 14.43 14.81 (13.56) (18.36) (16.35) (15.48) (17.10)

Notes : Figures in brackets pertain to FSA Quantity/Linkage There may be small difference in figures indicated elsewhere due to rounding off.

* Excludes data from two cement companies that discontinued Membership with CMA during 2009-10.

49th Annual Report

58

ANNEXURE-VI

CONSUMPTION OF COAL/ FUEL INCLUDING

CAPTIVE POWER PLANTS

(1992-93 to 2009-10)

(Mn.t)

Year Actual Coal Coal Coal Lignite,

Fuel Receipt purchased Imported Pet Coke

Consumption against from open and

Linkage Market other Fuel

VIII Plan

1992-93 12.05 10.49 1.27 0.09 0.80

1993-94 12.78 10.34 0.86 0.12 0.70

1994-95 13.29 10.28 2.32 0.71 0.80

1995-96 14.25 10.06 2.80 1.30 0.80

1996-97 15.03 10.45 2.48 1.65 0.70

IX Plan

1997-98 14.98 9.61 1.62 3.52 0.42

1998-99 13.98 8.24 0.77 4.66 0.20

1999-00 15.42 9.01 0.63 6.04 0.05

2000-01 15.37 9.74 0.79 4.40 0.42

2001-02 15.81 11.09 0.87 3.37 0.96

X Plan

2002-03 17.83 12.35 0.77 3.66 1.09

2003-04 18.85 13.35 1.03 3.18 1.52

2004-05 21.21 14.84 1.27 3.63 2.63

2005-06 22.39 14.81 1.55 3.40 2.98

2006-07 25.02 14.43 2.94 4.96 2.92

XI Plan

2007-08 27.33 14.56 5.00 6.08 3.20

2008-09 29.57 14.29 6.17 6.97 2.77

2009-10 * 25.80 10.78 4.36 6.95 4.15

* Excludes data from two cement companies that discontinued Membership

with CMA during 2009-10.

59

ANNEXURE-VII

YEAR-WISE CEMENT DESPATCHES BY RAIL, ROAD AND SEA (1992-93 to 2009-10)

(Large Plants)

(Mn.t)

Despatches %age

Year Despatches

Rail Road Sea Total by Rail

to Total

VIII Plan

1992-93 26.99 23.69 - 50.68 53

1993-94 28.45 25.77 - 54.22 52

1994-95 29.29 29.02 - 58.31 50

1995-96 29.12 35.37 - 64.49 45

1996-97 31.08 38.81 - 69.89 44

IX Plan

1997-98 32.58 43.99 - 76.57 43

1998-99 32.72 49.11 - 81.83 40

1999-00 38.71 55.29 - 94.00 41

2000-01 36.80 56.64 - 93.44 39

2001-02 36.20 64.06 2.11 102.37 35

X Plan

2002-03 37.12 72.25 1.70 111.07 33

2003-04 39.28 76.45 1.50 117.23 34

2004-05 41.45 83.55 2.14 127.14 33

2005-06 48.11 85.61 7.85 141.57 34

(10.62) (6.07) (2.34) (19.03) (56)

2006-07 59.37 88.25 7.62 155.24 38

(11.19) (6.90) (2.95) (21.04) (53)

XI Plan

2007-08 63.86 98.01 5.81 167.68 38

(12.59) (6.55) (2.89) (22.03) (57)

2008-09 68.33 107.36 5.50 181.19 38 (14.61) (8.17) (3.47) (26.25) (56)

2009-10 * 56.85 100.42 2.58 159.85 36 (14.23) (7.99) (3.43) (25.65) (55)

Figures in brackets pertain to Clinker Despatches

* Excludes data from two cement companies that discontinued Membership

with CMA during 2009-10.

49th Annual Report

60

ANNEXURE-VIII

ALL INDIA - COUNTRY-WISE CEMENT AND CLINKER EXPORT (2008-09 and 2009-10)

(Tonnes)

Country

2009-10 2008-09 2009-10 2008-09 2009-10 2008-09

Nepal 543294 419619 879778 509876 1423072 929495

Qatar 55916 248468 107806 90233 163722 338701

Sri Lanka 121939 39201 - - 121939 39201

Mozambique - 42857 78459 - 78459 42857

Iraq 65793 648259 - - 65793 648259

U.A.E. - 39577 30257 241463 30257 281040

Angola 18601 - - - 18601 -

Maldives 15731 1465 - - 15731 1465

South Africa 15452 - - - 15452 -

Sudan 15285 96472 - - 15285 96472

Yemen 14491 53090 - - 14491 53090

Oman 9917 36335 - 59340 9917 95675

Comores 6006 - - - 6006 -

Somalia 4605 6178 - - 4605 6178

Bhutan - - 241 3999 241 3999

Kuwait - 138018 - 73712 - 211730

Tanzania - 17127 - - - 17127

Mauritius - 13556 - 13556

Bangladesh - 2541 - - - 2541

Bahrain - 2500 - - - 2500

Mayotee - 2160 - - - 2160

Djibouti - 447 - - - 447

Congo - 84 - - - 84

Ethopia - - - - - -

Others ($) 712846 1392471 2046808 1920860 2759654 3313331

Total 1599876 3200425 3143349 2899483 4743225 6099908

($) - Country-wise break-up is awaited.

Total ExportCement Export Clinker Export

61

ANNEXURE-IX

CEMENT CONCRETE ROADS - BROAD DETAILS OF

ACTION TAKEN AND RESULTS OBTAINED

4th April, 2009 Presentation on Concrete Roads was made, along with Grasim

Industries Ltd. to Senior Municipal Engineers of Dharwad and

Hubli.

16th April, 2009 Presentation on Advantages of Concrete Roads was made to Senior

Officials of the PWD, Port Trust and Airports Authority in

Surat, jointly with Grasim Industries Ltd.

17th April 2009 Presentation on Concrete Roads was made along with Grasim

Industries Ltd. to Senior State Govt. Officials and other Road

and Airport construction professionals in Ahmedabad.

14th May 2009 Presentation on Concrete Roads was made to Hon'ble Chief

Minister of Delhi, Mrs. Shiela Dikshit. The Hon'ble Chief Minister

stated that she was convinced of the superiority of Concrete Roads,

and agreed to convert 400 kms of Delhi's roads into concrete. This

Presentation was made along with JK Lakshmi Cement Ltd.

28th May 2009 Presentation on Concrete Roads was made to Senior Officials of

the Ulhasnagar Municipal Corporation. The Corporation has

already constructed 44 kms. of Concrete Roads and has now

allocated Rs.154 crores for more such Roads.

11th June 2009 Govt. of Karnataka sanctioned 176.49 km of Cement Concrete Roads

costing Rs.86.37 crores under PMGSY. NRRDA approved these Roads

under Technology Demonstration Project and the work on these

Roads is in progress in Districts of Hasan, Shimoga, Haveri and

Belgaum.

14th & 17th

June 2009

Two Presentations on Concrete Roads were made to Senior

Engineers of UP PWD and Engineers of the Rural Roads

Development, UP in Lucknow. The Engineer-in-Chief, UP PWD,

accepted that Concrete Roads were superior to bituminous ones in

many respects, and added that UP was already building Concrete

Highways like the Yamuna Expressway. These presentations were

made jointly with Jaiprakash Associates Ltd.

16th & 17th

July 2009

Two Presentations on Concrete vs. Bitumen Roads were made to

Senior Engineers of Tamil Nadu PWD in Chennai. Chief

Engineers present said they could seek CMA's help for designing

Concrete Roads, suitable for their areas. These Presentations were

made along with India Cements Ltd.

49th Annual Report

62

19th Aug. 2009 Presentation on Concrete Roads was made to the Director General

(Roads) and Senior Officials of the Ministry of Road Transport

and Highways (MoRTH) in Delhi. After the Presentation, DG

(Roads) announced that henceforth the MoRTH would allow

the use of PPC and Slag Cement in Concrete Road

construction.

8th Sept. 2009 Presentation on Concrete Roads was made to the Maharashtra

Economic Development Council in Mumbai. The Council noted

that the hundreds of kilometers of Concrete Roads constructed in

Mumbai and other cities in Maharashtra had facilitated smoother

flow of traffic.

11th Sept. 2009 Presentation on Construction of Cement Concrete Roads was made

to the Shree Gyaneshwar Maharaj Sansthan Committee at

Alandi in Maharashtra. The Chief Manager of the Sansthan agreed

to concretize Roads in the area, to keep them damage free and pot-

hole free throughout the year, for the convenience of the lakhs of

pilgrims who visit the shrine.

19th Nov. 2009 CMA representatives met Deputy Secretary, PWD Shri M.N.

Dekate, Govt. of Maharashtra to apprise him of the advantages of

Cement Concrete Roads. Mr. Dekate informed CMA that it is

proposed to build stretches of State Highways passing through

cities, and towns in Cement Concrete.

19th Nov. 2009 CMA conveyed advantages of Cement Concrete Roads through D.O.

letters to all the District Collectors of Maharashtra and requested

them to implement various infrastructure projects in their district

such as construction of stretches of State Highways, Major District

Roads, other District Roads and Rural Roads in Cement Concrete.

27th Nov. 2009 CMA conveyed the highlights of comparative advantages of Cement

Concrete Roads to Hon'ble Dy. Chief Minister and Minister of

Public Works Deptt., Govt. of Maharashtra, Shri Chhagan

Bhujbal, Hon'ble Shri Sunil Tatkare, Minister of Finance and

Planning, Govt. of Maharashtra and Shri Vithal V. Kamat,

President, Mahatrashtra Economic Development Council,

Mumbai and requested them to take up with State authorities as a

policy decision to undertake four-laning of Mumbai-Goa National

Highway in Cement Concrete and also take up stretches of State

Highways in Cement Concrete.

4th Dec. 2009 CMA officials met Dr. C.S. Viswanatha, Head of Task Force in the

State of Karnataka, Shri N.S. Ramesh, Chief Engineer,

Karnataka Road Development Corporation Ltd., Shri H.S.

Prakash Kumar, Chief Operating Officer, Karnataka Rural Road

Development Agency and Shri N. Lakshman Rao Peshve,

63

Secretary to Govt. of Karnataka and apprised them about the

activities of CMA and conveyed highlights of the comparative

advantages of Cement Concrete Roads over the conventional

Bitumen ones.

9th Dec. 2009 CMA conveyed advantages of Cement Concrete Roads to all the

District Collectors of Goa and requested them to undertake

construction of stretches of major District Roads, other District

Roads and Rural Roads in Cement Concrete.

10th Dec. 2009 Smt. Sheila Dixit, Hon'ble Chief Minister of Delhi took a decision

to construct about 192 km Cement Concrete Roads in Phase-I in

Delhi.

22nd Dec. 2009 CMA officials met Shri R. Dhan Singh, Chief Engineer, Greater

Hyderabad Muncipal Corporation (GHMC) and Smt. Lakshmi

Parthasarathy, Pricipal Secretary, Deptt. of Transport and

Building at Hyderabad and conveyed the advantages of Cement

Concrete Roads.

4th Jan. 2010 CMA officials contacted Capt. BVJK Sharma, CEO and JMD of JSW,

Jaigarh Port Ltd, to apprise him about the advantages of Cement

Concrete Pavement with regard to proposed construction of 9 km –

4-lane road in District Ratnagiri. A letter has also been written to

Capt. BVJK Sharma requesting for construction of above Road in

Cement Concrete.

7th Jan. 2010 CMA wrote to Hon'ble Minister for Road Transport, Shri Kamal

Nath and Hon'ble Minister of State for Environment, Shri Jai

Ram Ramesh, informing them of advantages of Cement Concrete

Roads, and requesting them to formulate a policy that all future road

construction should be in Cement Concrete in the interest of nation.

15th Jan. 2010 CMA conveyed highlights of comparative advantages of Cement

Concrete Roads to the Development Authorities of Uttar

Pradesh, Punjab, Chennai, Rajasthan, West Bengal, Odisha,

Madhya Pradesh, Kerala, Jharkhand, Bihar, Haryana,

Himachal Pradesh and Assam.

29th Jan. 2010 Letter written to Shri Ratnakar Gaikwad, IAS, Commissioner

Mumbai Metropolitan Region Development Authority

suggesting construction of Cement Concrete Roads in the areas

where there are very few stretches of such Roads.

3rd Feb. 2010 Letter written to Engineer in Chief, Irrigation Deptt. of UP,

highlighting the advantages of Cement Concrete Canal Lining.

49th Annual Report

64

8th Feb.2010 Bangalore Development Authority is executing 116 km

Peripheral Ring Road Project around Bangalore with four-lane and

service roads on either side. CMA has requested the Hon'ble Chief

Minister, as well as Cabinet Ministers, Heads of Municipalities

& Local Bodies, Urban Development Department and

Commissioner, Bangalore Development Authority to undertake

the construction of this road in Cement Concrete.

17th Feb.2010 Technical Consultants of India Cements Ltd. had meetings with

officials of various Govt. Departments and undertakings in Tamil

Nadu to brief them on the advantages of Concrete Roads and

persuade them to construct more such Roads.

23rd Feb.2010 Software for comparison of cost of Concrete and Bitumen

Pavements, under different conditions and varying prices was

finalized after detailed discussions with Industry

Representatives.

04th Mar.2010 Presentation on advantages and cost comparison of Cement

Concrete Pavement over Bituminous Pavement was made by CMA

officers on 4th March in the office of the Vice Chairman, Kanpur

Development Authority. Engineers of Kanpur Development

Authority and Kanpur Nagar Nigam were also present.

08th Mar,2010 CMA Officers met Shri Vithal Venkatesh Kamat, President,

Maharashtra Economic Development Council (MEDC) and Shri

Dhananjay Dhawad, Secretary (Roads), Public Works Deptt.,

Government of Maharashtra, Mumbai and apprised them about

the superiority of Cement Concrete Pavements over Bituminous

Pavements. CMA officers assured them for providing any technical

assistance required.

10th Mar.2010 At a function organized by Bangalore University, UltraTech

Cement Ltd. arranged a presentation by Dr. LR Kadiyali on Highway

Pavements - past, present and future, bringing out the advantages

of Cement Concrete pavements. He emphasized the need to switch

over to concrete pavements in preference to bituminous pavements.

12th Mar.2010 All Nodal Officers were requested to organize Seminars, Meetings

and Presentations with decision makers in the State Govts including

Ministers and Sr. Officials as well as Engineers to persuade them to

construct more Cement Concrete Roads.

65

17th Mar. 2010 A Software, developed to quickly find out the cost of comparison of

Cement Concrete Roads viz-a-viz Bituminous ones, after feeding in

necessary inputs such as type of soil, traffic density, price of various

materials etc., circulated to all the Top Executives and Nodal Officers

of Cement Companies. This will help Members in convincing various

authorities regarding cost effectiveness of Cement Concrete Roads.

25th – 26th

Mar. 2010

Presentations on Cement Concrete Roads made to Engineers,

Architects, Builders, BOT Operators and Govt. Officials at

Sholapur and Kolhapur. The PWD engineers evinced keen interest

in taking up concrete pavements on NH, SH and PMGSY Rural

Roads.

26th Mar.2010

CMA explained the advantages of Cement Concrete Roads over

Bituminous Roads to the Secretary of Ministry of Rural

Development and Vice President, NRRDA, New Delhi and

Principal Secretary of Rural Development, Govt. of Uttar

Pradesh and requested them to plan for construction of Roads

under PMGSY in Cement Concrete so that Govt. resources are better

utilized and people living in such areas have a better quality of

Roads.

30th Mar.2010 CMA official met Shri Ashok Kumar, Senior Road Specialist, World

Bank Project. He informed CMA that he is aware of advantages of

cement concrete roads, but wanted to know how to calculate

comparative cost of concrete and bitumen pavements in a foolproof

manner. A copy of our Software and Hand Book on Cement Concrete

Roads has been sent to him. He also informed CMA that wherever it

was considered appropriate, the World Bank recommended concrete

pavements for Roads.

6th Apr. 2010 A comparative cost estimate on which M/s. Jaiprakash Associates

Ltd. had based the construction of Yamuna Expressway in Cement

Concrete was provided by them and the same has been circulated to

all the Nodal Officers and Top Executives of Cement Companies.

19th Apr.2010 CMA has arranged to obtain details of all the tender notices for

construction of Cement Concrete Roads by the construction agencies

all over country. Details/records are being received regularly and

CMA has been requesting the concerned construction agencies to

take proper quality control measures during construction of cement

concrete roads in their area. A copy of CMA’s publication DOs and

DONTs is also being sent to them. Nodal officers of the concerned

area are also being requested to interact with the construction

agencies and provide them technical assistance.

49th Annual Report

66

ANNEXURE-X

CEMENT INDUSTRY’S COMMENTS ON NOTIFICATIONS

OF THE MOEF AND THE MINISTRY OF MINES

1. Environment Impact Assessment: MoEF Gazette Notification

No. S.O. 195 (E) of 19th January 2009

Clause Statement Problems – Suggestion

Para 2, after sub-para (iii)

However, modernization or expansion proposal without

any increase in pollution load and or any additional water or land requirement are exempted from the provisions of this

Notification.

However, modernization or expansion or change in Raw Mix/ Product Mix

proposal without any increase in pollution level as per prescribed standards or no significant increase in pollution

load and or any additional water or land requirement are exempted from the

provisions of this Notification.

Para 4, sub-

para (iii)

In the absence of any duly

constituted SEIAA or SEAC, a category ‘B’ Project shall be treated as Category ‘A’

Project.

In the absence of any duly constituted

SEIAA or SEAC, a category ‘B’ Project shall be considered at the central level. However, Category ‘B’ projects

are exempt from Scoping for three

years from the date of issue of this

Notification

Para 7, sub-para (ii)

However for expansion projects involving

enhancement of production by more than 50%, holding of public consultation shall be essential and no exemption in this regard

shall be provided.

To add in end – However, expert appraisal Committee may exempt in

some specific cases, depending upon

the scale of impact on the

environment.

Item 1(d) in

Column 5

(ii) Power Plants upto 50

MW, based on non-hazardous municipal waste are exempt.

(iii) Power Plants using waste heat boiler without any auxiliary fuels are exempt.

(ii) To delete the word “non-hazardous”

(iii) Power Plants using waste heat boiler or 15% auxiliary fuel without any

auxiliary fuels are exempt.

Para 10, new

sub-para

Copies of the EC shall be

endorsed to Heads of local bodies, Panchayats, Zila Parishads, Municipal Corporation Local NGO’s

etc.

Involvement of too many NGOs and

Agencies will complicate and delay EC.

For individual Industrial units of

same product and scale in each

state/region, one or two NGO’s

should be identified and a Committee

may be constituted by Nominating

Members from these organisations.

67

Clause Statement Problems – Suggestion

Display of monitored data

on companies website

In absence of a specific format for

display, there will be wide divergences, from display in different regions and there will be confusion in interpretation.

A Core Committee Nominated by CMA

should be authorised to coordinate in

problems and formulate standards

for presentation of data from

different regions.. Display Format of

monitored data on companies

website need be standardized

through consultation with Expert

Agencies.

Compliance Report

Submission to local or Regional office of MoEF

Many regional offices of MoEF are either

very small or without infrastructure, it will delay EC.

This responsibility should lie with the

Head Office of concerned SPCB’s.

Monitoring for Environment Parameters (Both Static and Dynamic) and Display

in Public Domain.

This provision will pose serious problem in absence of identifying Expert Agencies or the Guidelines

The monitoring frequency should be

uniform for all States. The method of

display in public domain needs be

uniform and be developed by MoEF in consultation with Industry

Associations [ e.g., CMA].

Regional Offices of MoEF to monitor implementation of the stipulated conditions

and safeguards stated in the EC letter.

Many regional offices of MoEF are either very small or without infrastructure, this responsibility will delay the process.

This should be the responsibility of

National Environment Protection

Authority (NEPA), which is pending

with MoEF.

2. National Ambient Air quality Standards-Gazette Notification

No. G.S.R 826 (E) of 16th November, 2009

Clause 3 (Table)

Component Periodicity of Measurement

Item 6 Lead – 24 Hrs Item 8 Ammonia – 24 Hrs Item 11 Arsenic – Annual Item 12 Nickel – Annual

These items are not generated or

emitted during manufacture of

cement or cement based products.

Cement industry should be

exempted from these measurements

because monitoring these pollutants

will need highly specialised

equipments and manpower – which

are infractuous.

49th Annual Report

68

3. Fly Ash Notification - Gazette Notification No. S.O. 2804 (E) of

3rd November 2009

Clause Statement Problems – Suggestion

Clause 2(1) In the Sept. 1999 Notification

Will make fly ash available to end users without any payment or any other

consideration for the purpose of manufacturing ash based products such as Cement, Concrete Blocks ……….

This Clause has been eliminated in the new Notification making it obligatory for cement industry to purchase fly ash. The

escalating cost is posing threat of reduction in fly ash use, lesser production of PPC, and diminishing performance of cement industry in mitigation of GHG emission.

Cement Plants manufacturing PPC

should be exempted.

Clause 2 (1A) in November 03,

2009 Notification

Compulsory Uise of Fly Ash in any cement plants

within a radius of 100 kms from a coal or lignite based Thermal Power Plants.

It restricts use of BF Slag an equally hazardous waste generated by steel

plants and use on a larger scale (upto 65% replacement of cement clinker in comparison to upto 35% by Fly Ash) by cement plants located within 100 kms

radius of both steel and thermal power plants. It also takes away the customers’ options of using a type of cement other than PPC.

Plants manufacturing Slag Cement

and located within 100 km of a TPP

should be exempted from this

Clause.

Clause 3 (a) (1)

(ii)

20% of Fly Dry ESP Ash

shall be made available to manufacturers of Fly Ash Bricks, Blocks and Tiles free of charge.

This provision denies the cement plants

its genuine requirement of fly ash from its own captive thermal power plants for use in manufacturing PPC by its own cement plants.

Cement plants with captive thermal

plants and producing PPC should be

exempted from this clause.

4. Mines & Minerals (Development & Regulation Act)

- Draft Notice No. 16/57/2005-MVI dated 5th August 2009, Revised Draft 2nd

June 2010

Section/

Page No.

Statement Problems-Suggestion

6/7 Maximum area for

prospecting – 1000 Sq.Km.

Will create unnecessary blocking of large

reserves by single party for trading.

For massive deposits like limestone the

area should be restricted to 50-100

Sq.Km.

Section/

Page No.

Statement Problems-Suggestion

69

Page No.

6(d)/8 For major minerals minimum

area for PL shall be 1.0 Sq.Km.

Will create problems for deposits containing minerals in less than 1.0 Sq.Km.

Should be relaxed for massive and compact deposits of economic minerals.

(6)/8-9 No mining lease shall be

given for an area, which is not compact and contiguous.

Will create problems in case of deposits covering villages at isolated places.

Exemption should be provided for such

cases.

7(4)/10 Period of Grant and

extension of a concession – ML for major minerals not

less than 20 years and not more than 30 years.

Will create problems for captive mines linked

to large scale manufacturing of essential commodities like Cement, Steel, etc.

Should be minimum for guaranteed life

of the plant or 30 years whichever is higher.

13(1)/16 State Govt. may by

Notification invite applications for PL

Will offer scope for non-user outfits at the

cost of genuine mineral based industrial Agencies.

Eligibility criteria should include actual users only.

18 (1) (2)/ 23

Transfer of Mining Lease-

Prior approval needed from Central or State Govt.

Undue delay due to conditionality, e.g., dues or arrears, mine closure compliance.

Should be made easy as in case of RL, LAPL etc.

25/ 40 Conditions of ML – Lessee shall pay to the occupier of

the surface of the land such compensation as may be prescribed.

Will create confusion because of many claimants and may lead to prolonged litigation.

Should be applicable only when letter of

intent for grant of ML has been issued

and it is required to execute mining lease.

32/ 56 Premature Termination of ML Provisions are too draconian and is

detrimental to the development of mineral based industries

Should be reviewed and simplified.

33(2)/ 6 Mine closure Plan Need of consent from several Agencies and

NGOs will complicate the procedures.

Instead of consent, the Panchayat should

be given copy of successive Mine

Closure Plans.

Section/

Page No.

Statement Problems-Suggestion

42(1) /

64

Payment of compensation to

owner of surface rights

It is a highly disputable issue and most often

lead to long-drawn litigation.

49th Annual Report

70

Should be deleted, as current provisions

in relevant State Laws and Rules

regulating grant of ML are adequate.

43(3)-

Annexure

National /State Mineral Fund Industries are already heavily burdened with

levies of diverse types from the State and Central Govt [in addition to Environmental Development, Local Area Development etc.].

Industries need be spared additional

Levies.

Updated Draft Mines & Minerals (Development & Regulation) Act – Version

03.06.2010

3(c) (i) &

(ii)

(i) A duty in the nature

of excise & customs levied and collected on major minerals by the Central

Government.

(ii) A duty on royalty levied and collected for major and minor minerals

by the State Govt.

Mining industry is already paying 2 types of

duties – dead rent and royalty as prescribed under the Act. Another duty in the nature of duty of excise and customs on major minerals

should be elaborated for justification.

42(2) (i) (2) The holder of a mining

lease shall, in respect of any person holding occupation or rights of the

surface of the land over which the lease has been granted be, liable to,

(i) Allot free shares equal to 26% through the promoter’s quota or an annuity equal to 26% of the profit (after deduction

of tax).

This should not be included in the

amended Act for follwing reasons :

(a) Cement companies have to acquire large extent of lands over which mining leases

for captive use are granted in various locations. Company may have more than one plant at various locations / State. Allotting of shares to the extent of 26% of

the company to the land owners for the mining lease of each plant is not feasible.

(b) It is also not possible to have separate company for each mining lease, which in

addition to being cumbersome will also involve transfer / sale of mineral to the captive unit.

Section/

Page No.

Statement Problems-Suggestion

(c) Companies also acquire lands for the

purpose of setting up plant, residential

colonies and for other infrastructure

facilities. This will open up the demand

from these land owners also for allotment

71

of shares of the company.

(d) Cement industry is a captive intensive industry and has to arrange finance for the project from financial institutions /

banks, who determine the capital of the company on the basis of debt / equity. In such an event valuation of land of mining lease equal to 26% of the shares of the company is not justified.

(e) Further company is required to pay annuity for the first five years even in case a company has not made any profits

after commencement of mining activity. It will not be acceptable to shareholders as they their capital is at risk as compared to the land owner, who does not have any

risk. The provision is neither feasible nor practical.

24 (1) (c) If any mineral not specified in the lease is discovered in the leased area, the lessee

shall not win and dispose of such mineral unless such mineral is included in the lease or a separate lease is obtained therefor.

This new mineral (except for atomic minerals) is to be included in granted existing Mining Lease, whether lessee requests or not for

inclusion. The commercial value can be decided by lessee and Govt. can get revenue/ royalty as the case may be.

*****

49th Annual Report

72

ANNEXURE-XI

LIST OF CMA PUBLICATIONS

A. Brought out/updated during 2009-10

� Indian Cement Industry - Statistics (2009)

� Cement, Energy and Environment – Quarterly

� Cement News Digest – Weekly

� Cement Journal – Quarterly

� Handbook on Cement Concrete Roads (Revised)

� Construction, Maintenance and Upkeep of Concrete Building

� DOs and DONTs for Cement Concrete Road Construction

� Building Lasting Homes

B. Other Important publications

� Cement Concrete Canal Lining

� Basic Data on Indian Cement Industry

� CMA Directory

� Cement for Construction – A Consumer Guide (In Different Languages – English, Hindi, Tamil, Telugu, Malayalam, Kannada, Punjabi and Gujarati)

� City Concrete Roads …. (Revised, Updated and Enlarged)

� Blended Cement … Portland Pozzolana Cement (A Pamphlet)

� Four Laning of Satara-Kolhapur-Kagal, NH4 (Updated)

� Handbook on Cement Concrete Canal Lining

� Precast Concrete Block Paving

� Fuel Savings on Cement Concrete Pavements

� Concrete Roads - 'Why' & 'How'

� Advances in Concrete Science & Technology

� Concrete Pavements for Toll (BOT) Roads

� Concrete for the Sustainable Development in the 21st Century

� Cement Concrete Roads - Arteries for the 21st Century (A Brochure)

� Global Warming & Cement

� Environment Friendly Cement Industry

� QC – Cement Concrete Roads Mumbai

� Handbook of Ready Mix Concrete

� India's First Access Controlled Expressway - Mumbai-Pune

� City Concrete Roads – Mumbai leads the Way

� Cement Concrete Pavements for City Roads, Bus Stands & Depots

� Cement Concrete Roads for Cities

� Concrete Overlays (White Topping of Roads) – Revised, updated and expanded version

� Widening and Strengthening of Single Lane Roads under NHDP IV – Concrete Pavements Option

� Cement in Service of The Nation

73

MEMBER COMPANIES OF CEMENT MANUFACTURERS’ ASSOCIATION (As on 31.3.2010)

1. Andhra Cements Ltd

Sri Durga Cement Works Sri Durgapuram, Dachepalli-522 414 Guntur Distt. (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

706, Om Towers,

32, Chowringhee Road, Kolkata - 700 001

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 Dist. 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. Grasim Industries Ltd (Cement Divn.)

Birlagram, Nagda – 456 331, Madhya Pradesh

11. Gujarat Sidhee Cement Ltd

Siddhigram - 362 276 Off. Veraval Kodinar Highway Taluka Veraval, Distt. Junagarh,

Gujarat 12. Heidelberg Cement India Ltd

P.O. Ammasandra, Distt. Tumkur, Karnataka –572 211

13. HMP Cements Ltd *

‘Fairlie House’ 4, Fairlie Place,

Kolkata 700 001 14. The India Cements Ltd

“Dhun Building’ 827, Anna Salai,

Chennai 600 002 15. J.K. Cement Ltd

Kamla Tower Kanpur 208 001,

Uttar Pradesh 16. J.K. Udaipur Udyog Ltd*

P.O. Shripatinagar

CFA - 313 021, Distt. Udaipur, Rajasthan

17. Jaiprakash Associates Ltd

(Cement Division)

Sector – 128, Noida 201 304, (U.P.) 18. Jammu & Kashmir Cements Ltd

(A Govt. of J&K Undertaking) Nawa-I-Subh Complex,

Zero Bridge, P.Box No. 149 Srinagar 190 001

49th Annual Report

74

19. JK Lakshmi Cement Ltd

Jaykaypuram Distt. Sirohi,

Rajasthan 20. The K.C.P. Ltd

Ramakrishna Buildings 2, Dr. P.V. Cherian Crescent

Egmore, Chennai 600 008 21. Kalyanpur Cements Ltd

2 & 3, Dr. Rajendra Prasad Sarani

Kolkata 700 001 22. Kesoram Industries Ltd

Kesoram Cement

Vasavadatta Cement

9/1, R.N. Mukherjee Road, Kolkata 700 001

23. Khyber Industries (P) Ltd

Khayam Road, Nowpora,

Srinagar 190 001 Jammu & Kashmir

24. Lafarge India Pvt. Ltd

Bakhtawar, 14th Floor, 229, Nariman Point, Mumbai 400 021

25. Madras Cements Ltd

Ramamandiram Rajapalaiyam 626 117, Tamil Nadu

26. Malabar Cements Ltd

(A Govt. of Kerala Undertaking) Walayar P.O., Palakkad Distt. - 678 624, Kerala

27. Mangalam Cement Ltd

Adityanagar, Morak - 326 520 Distt. Kota (Rajasthan)

28. Mawmluh-Cherra Cements Ltd

(A Govt. of Meghalaya Undertaking) Taxation Building, (Near Raj Bhawan) Shillong - 793 001, Meghalaya

29. Meghalaya Cement Ltd

Village Thangskari, P.O. Lumshnong, Distt. Jaintia Hills,

Meghalaya - 793 200 30. My Home Industries Ltd

9th Floor, Block-3, My Home Hub, Madhapur, Hyderabad - 500 081

31. OCL India Ltd

Rajgangpur - 770 017 Distt. Sundergarh, Orissa.

32. Orient Cement

(Prop: Orient Paper & Inds. Ltd) Bhubaneswar – 751 012,

Orissa 33. Panyam Cements & Mineral Inds Ltd

C-1, Industrial Estate, Bommalasatram, Nandyal,

Kurnool Distt., Andhra Pradesh 518 502

34. Penna Cement Inds.Ltd

Plot No.703, Sriniketan Colony,

Road No.3, Banjara Hills, Hyderabad 500 034

35. Prism Cement Ltd

305, Laxmi Nivas Apartments Ameerpet, Hyderabad 500 016 (A.P.)

36. Rain Commodities Ltd

Rain Centre, 34, Srinagar Colony, Hyderabad –500 073 (A.P.)

37. Sanghi Inds.Ltd

Sanghinagar–501 511

R.R.Dist., Andhra Pradesh.

38. Saurashtra Cement Ltd

Near Railway Station, P.O. Ranavav - 360 560, Gujarat

39. Shree Cement Ltd

Bangur Nagar, Post Box No.33, Beawar - 305 901 (Rajasthan)

40. Shree Digvijay Cement Co.Ltd

P.O. Digvijaygram – 361 140 Via Jamnagar, (Gujarat)

41. Shriram Cement Works

(A divn. of DSCL)

75

6th Floor, Kanchenjunga Building, 18, Barakhamba Road, New Delhi 110 001

42. Sone Valley Cement Co. Ltd*

Shahi Bhawan, 2nd Floor, Exhibition Road, Patna 800 001, Bihar

43. Tamil Nadu Cements Corp. Ltd

(A Govt. of Tamil Nadu Undertaking) LLA Building, 2nd Floor, 735, Anna Salai, Chennai 600 002

44. UltraTech Cement Ltd

‘B’ Wing, Ahura Centre, 2nd Floor, Mahakali Caves Road Andheri (E), Mumbai 400 093

45. Zuari Cement Ltd

(Italcementi Group) Krishna Nagar, Yerraguntla 516 311 Kadapa Distt, Andhra Pradesh

* Plants closed

49th Annual Report

CEMENT MANUFACTURERS' ASSOCIATION

SECRETARIAT

SECRETARY GENERAL Shri N.A. Viswanathan

ACTING SECRETARY Shri S.K. Dalmia JOINT SECRETARY Shri S.V. Joshi Shri G.Y. Narayana Shri N.K. Pande

SR. DY. SECRETARY Shri Jainender Kumar Shri H.K. Panchal

Shri Rakesh Gupta EDP MANAGER Shri Piyuesh Aggarwal EDP OFFICER Shri J. Srinivasan

SR. ASSISTANT SECRETARY Mrs. Inderjeet Kaur ASSISTANT SECRETARY Shri N.S. Pawar Shri C.S. Pant

AUDITORS Messrs K.S. Aiyar & Co. Chartered Accountants

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

Corporate Office Mumbai Office

CMA Tower,

A-2E, Sector 24,

Noida -201301 (U.P.)

Tel: 0120-2411955, 2411957, 2411958, 2411764

Fax: 0120-2411956

Email: cmand@vsnl.com, cmand@cmaindia.org

Express Building, 1st Floor,

Indian Merchants’ Chamber Marg,

Churchgate, Mumbai - 400 020

Tel: 022 -22049691, 22851304

Fax: 022 -22040582

Email: cmabb@bom3.vsnl.net.in

Registered Office

Vishnu Kiran Chamber,

2142-47, Gurudwara Road,

Karol Bagh, New Delhi – 110005

Tel: 011- 28753206, 28751307

Fax: 011-28758476