Centre should frame policy to boost demand, says JK Lakshmi

PTI patna

The government should reduce GST on cement to 18 per cent from 28 per cent and take some policy measures in the upcoming Budget to boost consumption of this key building material, a senior official of JK Lakshmi Cement said.

In an interview with PTI, Arun Shukla, President and Director of JK Lakshmi Cement, said there is a case to increase cement manufacturing capacity in India to meet the rising demand, which is expected to grow at an average annual rate of 7-8 per cent.

"One of the long-cherished dream, or the wish for us, has been reducing GST on cement," Shukla told PTI on the sidelines of 'Bihar Business Connect 2024' meet held here recently.

In India, cement is taxed at the highest rate of 28 per cent and this needs to be reduced to 18 per cent, he said while replying to a query on the Budget wishlist from the industry.

"Cement is, I would say, one of the major component of driving growth in the economy," Shukla said, adding that cement is required to build world-class infrastructure that can support the growth of the Indian economy.

He also emphasised on the need to enhance the consumption of cement in India."Cement is one of the major drivers of growth, so how we can really increase consumption of cement?" he said.

Shukla said the cement concrete roads have more longevity and in the long run and it is more cost-effective than bitumen roads. "So my wish would be to really kind of drive this (cement consumption), through maybe some of the policies and specifications...," he said.

JK Lakshmi Cement, part of the JK Organisation, is investing Rs 500 crore in Bihar to set up a manufacturing plant in Madhubani district.

The Bharat Hari Singhania family-promoted JK Lakshmi Cement had signed a Memorandum of Understanding (MoU) with the state government in 2023 investors' meet itself for its proposed manufacturing unit.