Date:01/03/2005 URL: http://www.thehindubusinessline.com/2005/03/01/stories/2005030102070400.htm

Back Duty on clinker goes up

Our Bureau

New Delhi , Feb. 28

THE Finance Minister, Mr P. Chidambaram, has hiked the excise duty on cement clinker from Rs 250 a tonne to Rs 350 a tonne.

According to cement manufacturers, the proposed increase may not lead to an increase in the price of the product.

"It is not clear whether the increase in duty would be allowed to be adjusted with Cenvat and if it is allowed, there may not be any increase in cement prices," the Director of Kesoram Industries Ltd, Mr S.K. Parik, said.

Companies are also bullish about the increased allocation to the National Highways Development Project, which is expected to give a big boost to consumption of cement.