New Delhi: India would need to double cement manufacturing capacity to over 320 million tonnes (mt) in the 11th Plan (2007-12) to meet demand from growing infrastructure sector, an Assocham survey has said.
“With the infrastructure sector including roads, ports, airports, housing and construction driving the growth, India would need to more than double its cement manufacturing capacity to over 320mt in the 11th Plan period,” the survey, called Eco Pulse, said.
Cement demand would grow by about 15% per annum even if half of the projected $350 billion (Rs15 lakh crore) investment in infrastructure is made, it revealed.
The survey stated that the present capacity of 165mt is expected to go up by 100mt in next five years with major industry players taking up capacity expansion. But, this addition is likely to fall short of the then requirement by about 55mt, it added.
To meet the demand-supply gap, Assocham president V.N. Dhoot called for sops to companies to enable them increase production. “The government should incentivize the expansion of manufacturing capacity by way of both fiscal as well as procedural steps,” he said.