The lack of support from private manufacturers has hit the government’s Amma Cement Scheme that offers at a flat Rs 190 a 50-kg bag that retails at Rs 340-Rs 370.
Procurement by Tamil Nadu Cements Corporation Limited (TANCEM), the nodal agency, has dropped from more than 1 lakh tonnes a month a year ago to just 30,000 tonnes a month now.
Beneficiaries in Chennai, Chengalpet, Kancheepuram and Tiruvallur districts received an approximate 1,500 tonnes in September. In 2016 and 2017, beneficiaries in Chennai alone got 2,300 tonnes to 4,200 tonnes a month, shows official data.
The plunge in procurement comes at a time when prices of portland pozzolana cement (PPC) have risen by Rs 120 a 50-kg bag in the past four months. The Amma scheme, under which an individual sourcing 750 bags can save about Rs 1.3 lakh on construction cost, appears to have disappeared in Chennai and suburbs, after active implementation till a few years ago, said Builders Association of India state treasurer S Ramaprabhu.
A TANCEM official said procurement had taken a beating due to private manufacturers refusing to provide cement. “They have been citing the rise in input cost and dip in production for reducing the supply. The government has convened a meeting with cement suppliers to resolve the issue,” the official told TOI. While distribution in Chennai and neighbouring districts had not been affected, rest of Tamil Nadu has been hit, the official added.
Manufacturers say the government had failed to revise the procurement rate for seven years and demand that the authorities concerned take a decision in this regard immediately.
Ramco Cements Limited chief executive officer Dharmakrishnan said the state government was procuring cement from manufacturers at Rs 185 a bag, which did not go to cover even the production cost. “We have appealed to the Tamil Nadu government to increase the procurement cost during a recent meeting. Moreover, the government also has pending dues for manufacturers regarding procurement for the scheme,” he added.
