Construction, infra sector hopeful
The Times of India, February 25, 2009, Page 26
TEAM TOI
The construction and infrastructure industry is hoping for some cost amelioration after the reduction in excise duty on bulk cement, as well as the cut in service tax. Larsen and Toubro CFO Y M Deosthale said, “It is a good measure, but the impact of the reduction in excise duty on bulk cement will depend on how much of the benefits the manufacturers will pass on to the consumers. Even if 50% of benefits are passed on, it will have an impact on infrastructure.’’
Officials at Mumbai-based Hindustan Construction Company (HCC), which is constructing the Bandra-Worli sealink, were, however, not optimistic. “The impact of these measures on our projects will be minimal,’’ they said.
Civil engineers working on another city brige project explained: “Currently the price of cement is Rs 4,500 per tonne and the cost content of cement in large bridge projects is between 4-5%. In the case of large concrete dam projects, the cement content is higher and the cost is between 8-9%. The impact of the reduction in cement prices might amount to anywhere between 1-0.5% on most civil engineering projects.’’
CII director general Chandrajit Banerjee said: “The reduction in excise duty on bulk cement to 8% will also help reduce costs of real estate and infrastructure development.’’ But, he also had some additional demands: “These fiscal measures should be coupled with further monetary measures as inflation has now come down to below 4%.’’
The Times of India, February 25, 2009, Page 26
TEAM TOI
The construction and infrastructure industry is hoping for some cost amelioration after the reduction in excise duty on bulk cement, as well as the cut in service tax. Larsen and Toubro CFO Y M Deosthale said, “It is a good measure, but the impact of the reduction in excise duty on bulk cement will depend on how much of the benefits the manufacturers will pass on to the consumers. Even if 50% of benefits are passed on, it will have an impact on infrastructure.’’
Officials at Mumbai-based Hindustan Construction Company (HCC), which is constructing the Bandra-Worli sealink, were, however, not optimistic. “The impact of these measures on our projects will be minimal,’’ they said.
Civil engineers working on another city brige project explained: “Currently the price of cement is Rs 4,500 per tonne and the cost content of cement in large bridge projects is between 4-5%. In the case of large concrete dam projects, the cement content is higher and the cost is between 8-9%. The impact of the reduction in cement prices might amount to anywhere between 1-0.5% on most civil engineering projects.’’
CII director general Chandrajit Banerjee said: “The reduction in excise duty on bulk cement to 8% will also help reduce costs of real estate and infrastructure development.’’ But, he also had some additional demands: “These fiscal measures should be coupled with further monetary measures as inflation has now come down to below 4%.’’
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