New Delhi: After repeated appeal by the Government of India, cement makers have finally agreed to hold the prices for a year. They, however, refused to roll back the recent hike.
Instead, they have told the government that any decrease in the levies would be passed on to customers, Commerce and Industry Minister Kamal Nath said on Friday.
The Finance Ministry had earlier asked the cement manufacturers to cut prices, saying they should respond positively to the Budget proposal of dual duty structure for the sector.
"Excise hike (announced in the Budget) is meant to be a message for cement producers. I hope they will respond," Revenue Secretary K M Chandrashekhar said on Thursday.
The Budget for 2007-08 raised excise duty on cement by Rs 200 to Rs 600 per tonne, if it is sold above Rs 190 a 50 kg bag in retail market. The Budget had also announced duty concession for those cement producers who sell it below Rs 190 a bag of 50 kg by levying lower duty of Rs 350 per tonne.
Chandrashekhar asked cement producers to regulate themselves and said the ministry was not considering any review of the duty structure for the sector.
In spite of the government appeal, the cement manufacturers, however, refused to the cut prices and had, in fact, increased the rates just a day after the Budget presentation.
Finance Minister P Chidambaram held a meeting with a delegation of cement companies on Thursday and tried to persuade them to roll back the hike in prices. But the companies promised to do so only if the government announces duty cuts.
They told Chidambaram that it would not be possible for them to take back the hike unless duty cuts are announced.
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