Cement cos to cut prices in some states: Govt

By Nayantara Rai, CNBC-TV18

The government said that cement companies will cut prices from Rs 3-7.5 per bag in some states, reports CNBC-TV18. The cement price cut will come into effect immediately.

The government will consider an abatement on excise duty for the cement industry. Industry Minister Kamal Nath met cement companies on prices today.

The Commerce Minister had a marathon meeting with the cement manufacturers. Sources told CNBC-TV18 that the price cut is applicable only to those states where cement manufacturers are not providing cement at a concessional rate. So far, it is only Tamil Nadu and Andhra Pradesh where cement companies are supplying cement at a concessional rate. All the other states are going to have this price cut on prices that were prevailing on April 1.

The government also said that it was going to consider abatement on excise duty for the cement manufacturers. Kamal Nath said that cement is not the only industry where abatement on excise duty does not exist.