FM talks tough, asks cement cos to cut prices

Finance Minister P Chidambaram today asked cement manufacturers to cut prices claiming that a section of them was keen to co-operate with the government in this regard.

"We have information how much your (cement makers) sales have increased. How much your PBT has increased. How much your PAT has increased. So, you should come forward with some proposals (on moderating cement prices)," Chidambaram told reporters after meeting a delegation of cement companies.

The Finance Minister had called cement manufacturers for the second time after the Budget, which imposed dual excise duty structure on cement to rein in prices. The budget hiked excise duty to Rs 600 a tonne from Rs 400 if cement is sold higher than Rs 190 per bag of 50 kg and reduced it to Rs 350 per tonne if sold up to Rs 190. The move, however, failed as cement makers hiked prices by up to Rs 12 per 50 kg bag.

Chidambaram asked the industry to co-operate with the government to fight inflation, which has touched 6.46% for the week ended March 3 with cement prices increasing at the rate of 4.4%.

Read more at Business Standard

Hound hoarders, act: Finmin

Pushed past his limit of tolerance for inflation, Finance Minister P Chidambaram said the government will neither plead helplessness nor remain passive to rising cement prices, while asking states to act against those hoarding primary articles.

Winding up the debate on Budget 2007-08 in Lok Sabha amid noisy protest by the Opposition, the minister said the government "cannot plead helplessness or remain passive" to abnormal rise in prices of the construction material.

Read more at Financial Express