NEW DELHI: Cement makers offer steep discount for highway work

Bya897204973

Updated 2014-10-27

In what could come as a big boost to increase the use of cement in highway construction, over three dozen cement manufacturers have offered to supply the commodity for as low as 125 a bag.

The low ex-factory price will translate into an average cost of Rs 180-190 a bag, which will be a discount of close to 30% from the market price of Rs 270-300 for a 50-kg bag. During the bids, which were opened on Friday, the lowest price was quoted by a Rajasthan-based manufacturer, although at the other extreme were companies that have quoted prices near the current market price, said sources familiar with the exercise.

Soon after taking charge, transport minister Nitin Gadkari had announced his plan to build more concrete roads, which are seen to be durable, low on maintenance but cost around 10% more. The prices quoted by cement companies may narrow the gap to 2-3%, industry sources said.

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