Govt waves off CVD and special additional duty on cement

New Delhi, Apr 3 (UNI) To increase availability of cement and moderate prices, the Finance Ministry today announced exempting Portland cements from countervailing duty and special additional duty of customs of four per cent.

With a view to keep prices of cement in check, the government had fully exempted on January 7, 2007, basic customs duty on Portlands cement.

An official spokesperson here said cement prices continued to be high despite the January order, which had compelled the government to take further steps.

The spokesperson said the notification with regard to countervailing duty (CVD) and special additional duty has already been issued.

She said cement prices have been rising during the course of last one year. The average prices of cement has risen from Rs 165 per 50 kg a bag in January 2006 to Rs 209 per 50 kg a bag in February 2007 and to Rs 220 per 50 kg a bag in March 2007.

''The cement industry was requested to moderate prices in the interest of consumers. But the industry is apparently of the view prevailing high prices are a consequence of a demand-supply mismatch,'' she said.

The spokesperson said the government has invited cement manufacturers to come forward with proposals to moderate the prices of cement.

UNI