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Chennai, Jan 5 (UNI) A delegation from Larsen and Toubro today met Chief Minister M Karunanidhi and submitted a proposal for setting up a shipyard in Tamil Nadu with a huge investment.

Union Finance Minister P Chidambaram accompanied the delegation which was led by L and T Chairman A M Naik.

Talking to reporters after a 30-minute meeting with Mr Karunanidhi at his Gopalapuram residence, Mr Chidambaram said the Chief Minister had agreed to favourably consider the proposal.

Mr Naik and Mr Chidambaram said the shipyard would come up with a huge investment and would generate employment on a massive scale.

One of the L and T officials, who was part of the delegation, said the investments would be to the tune of Rs 3,000 crore and the location for the proposed shipyard would be decided soon.

Asked about the Tamil Nadu Government's warning that it would take over cement companies if the prices were not brought down, the Finance Minister shared the Chief Minister's concern in this regard and appealed to the cement manufacturers to take this into consideration and lower the prices.

Mr Chidambaram said the cement manufacturers were charging exorbitant prices citing the huge gap between the demand and supply.

''They should not do it. They are making huge profits. They can make some decent profit and still start new investments'', the Union Finance Minister said and criticised the cement manufacturers for forming cartels and indulging in unfair practices.

The cement manufacturers should take into consideration the apprehensions of the Tamil Nadu government and reduce the prices to make it affordable to the common man.

''This will also help the cement companies earn good name among the public'', he added.

Asked whether he had received any letter from the state government seeking flood relief from the Centre, Mr Chidambaram said he had not received any such letter.

''Perhaps, it would have gone to the Home Ministry'', he added.

UNI GV AJ AK RN2009