Displaying items by tag: Telangana

India: Orient Cement plans to upgrade its Devapur in Adilabad District, Telangana. It will invest US$290m towards more than doubling the unit’s cement production capacity to 7.5Mt/yr from 3Mt/yr, according to the Press Trust of India. The cement producer obtained first stage clearance from the Ministry of Environment, Forest and Climate Change to expand the existing integrated cement plant. However, final clearance from the Ministry is still awaited.

India: Kakatiya Cement, Sugar & Industries plans to reopen its 2.97Mt/yr cement plant at Dondapadu in Telangana following its closure on pollution grounds in October 2017. Following the installation of online SPM stack monitoring equipment and connections to the Central and State Pollution Control Board servers, the company is ‘hopeful’ that the plant will be able to restart operations by the end of April 2018. The cement producer is currently obtaining clearance from the Telangana State Pollution Control Board.

India: Anjani Portland Cement plans to build a new clinker production line at its Chintalapalem plant at Gudimalkapuram in Telangana. The plant has a production capacity of 1.16Mt/yr and this will rise to 2.31Mt/yr once the upgrade is complete. The project is expected to cost US$61m. It is scheduled to be completed by the end of 2019.

India: NCL Industries has completed a production capacity upgrade project for both clinker and cement. Commercial operations for the upgrade started on 7 March 2018. The cement producer increased its clinker capacity to 2.6Mt/yr and cement capacity to 2.7Mt/yr in 2017. It operates an integrated cement plant at Simhapuri in Telangana and a cement grinding plant at Kondapalli in Andhra Pradesh. It sells cement under the Nagarjuna Cement brand.

India: The Central Pollution Control Board (CPCB) has ordered three cement plants to stop operation and issued show-cause notices to 11 other units in Telangana. Kakatiya Cements in Nalgonda, Mancherial Cements in Mancherial and the government owned Cement Corporation of India at Tandur have been issued with closure notices, according to the new Indian Express newspaper. Around 240 cement factories across the country have been sent either closure or show-cause notices.

The campaign follows an initiative asking selected industries to install online pollution monitoring systems which are to be connected to the CPCB as well as State Pollution Control Board servers to ensure real-time monitoring of pollution emission of industries. Cement plants have also been sent show-cause notices for failing to meet new emissions standards set by the CPCB.

India: 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.

India: 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.