Displaying items by tag: Telangana
State government to reopen Bheema Cements
22 June 2017India: The state government of Telangana plans to help reopen the 0.9Mt/yr Bheema Cements plant at Bhavya. Following the recommendations of a committee the government intends to revive the plant subject to certain conditions and payments, according to the Press Trust of India. The plant was closed due to financial losses in 2014. Mining leases allocated to the plant have also expired.
India: Sagar Cements has started generating power from a 6MW waste recovery unit at its Mattampally cement plant in the Nalgonda District of Telangana. The company’s board of directors approved the construction of the unit in March 2016.
Indian cement producers continue to defend prices
12 June 2017India: Sagar Cements, India Cements and Bharathi Cements have continued to defend public concerns over cement pricing due to economic trends beyond their control. In a press conference the producers blamed rising input costs, distribution costs, taxes and high margins by dealers, according to the Times of India newspaper. They added that the key demand drivers for the industry are residential house building and government projects.
S Srikanth Reddy, Executive Director of Sagar Cements forecast that cement demand will rise by 10 – 18% in Telangana and Andhra Pradesh over the next two to three years due to large government-run infrastructure projects. Tamil Nadu and Kerala are expected to rise by no more than 5% and Karnataka is expected to rise by 2 – 5%.
However, despite increases in the short term, the cement producers forecast problems for the industry in the south of the country, and in Andhra Pradesh and Telangana in particular, due to production overcapacity as producers increased their installed capacity in anticipation of high demand. At present they say that producers are forced to run plants at 60% production utilisation rates with high volatility in price rates in a highly fragmented market with over 50 brands.
India: A Joint Action Committee (JAC) comprising of Confederation of Real Estate Developers’ Associations of India (CREDAI), Telangana Real Estate Developers’ Association (TREDA), Builders Association of India (BAI), Telangana Builders Federation (TBF), Telangana Developers Association (TDA) and other small and big member groups has reacted angrily against a 60% increase in the price of cement in Telangana. The group has described the rise as ‘unjustified’ and has asked cement producers to rescind the increase, according to the Hindu newspaper. S Ram Reddy, president of CREDAI and chairman of the JAC said that fuel and power costs had not increased for cement producers. He added that the JAC had failed to obtain a response from the Cement Manufacturers Association on the issue. The developers are considering options including importing cement into the state from the international market. They are also planning to meet Prime Minister Modi with a request to constitute a body to regulate the cement industry.
India: The India Ratings and Research has blamed demonetisation and elections for a poor fourth quarter for cement producers in the 2017 Indian financial year. Cement production volumes fell by 15.8% year-on-year in February 2017 and by 5% on a month-on-month basis. India Ratings also attributed the decline to a strong equivalent quarter in the 2016 financial year.
It reported that volumes for the major cement producers contracted by 5% year-on-year in the third quarter. On a regional basis it fell by 3% and 6% for producers in central and northern regions. However, volumes rose sharply, by 21%, in the south. Growth in the southern region has been supported by increases in government spending in the states of Andhra Pradesh and Telangana.
The agency also reported that changes announced by the Ministry of Railways, which requires long-term agreements and contracts for industries like cement, steel and fertilisers, could potentially drive demand for cement. The new policy will provide conditional discounts that could increase the transport of cement through the rail network and cement manufacturers will be able to control freight costs more effectively. However, the availability of wagons during peak periods might also constrain the policy.
Keerthi Industries starts 2.24MW waste heat recovery unit at plant
13 February 2017India: Keerthi Industries has started operation of a 2.24MW waste heat recovery unit at its Keerthi cement plant at Mellacheruvu, Nalgonda district in Telangana. The cement producer says that the upgrade cost US$3.9m to buy and install, according to local press. Keerthi Industries operates a 0.6Mt/yr cement plant.
Anjani Portland Cement commissions 16MW captive power plant
12 January 2017India: Anjani Portland Cement has commissioned a 16MW coal powered captive power plant at its cement plant in Anjani Puram. The cement producer operates a 1.3Mt/yr plant and is a subsidiary of Chettinad Cement.
Telangana state government signs deal for 2.7Mt of cement
25 November 2016India: The Telangana state government has signed an agreement with 32 cement companies to procure 2.73Mt of cement to build residential housing. The government plans to build 260,000 double-bedroom houses for disadvantaged residents in the state, according to the Indo-Asian News Service. The Telangana Housing Corporation will implement the scheme.
India: The Heavy Industry Minister Anant Geete has arranged a meeting with officials of the Telangana state government and the Cement Corporation of India (CCI) to discuss the possibility of opening the closed CCI cement plant in Adilabad. The meeting will be held in June 2016 at Hyderabad or New Delhi, according the Hindu newspaper.
The meeting is the second occasion that ministers from Telangana have met with Geete to lobby for the reopening of the CCI plant. Options being considered include privatising the plant or retaining control by the government. The cement plant has a production capacity of 4Mt/yr.
Singareni Collieries to cut supply to cement producers
17 December 2014India: Singareni Collieries Company Limited (SCCL) has decided to cut coal supplies to the cement industry as it prioritises thermal power plants in Telangana and Andhra Pradesh. Power companies in the two states use 66% of coal produced by SCCL. However, the plants have been unable to work to their full capacity in the second half of 2014 due to a shortage of coal, according to SCCL General Manager S Chandrasekhar.
The decease in coal supplies to the cement producers is expected to make prices rise. Local media reports that the coal from SCCL is more suitable for cement production than power generation as it has a high ash content of 35 – 40%. SCCL is also reported to have encountered several instances of 'misuse' of allocated coal by cement companies. 160,000t/day or 16% of the total coal production is currently allocated to the cement industry and another 6.6% is allocated to captive power plants run by cement companies.