India: cement producers target government road projects

High-ranking representatives of 17 cement manufacturers promised road transport minister, Nitin Gadkari, that their companies would put in lower bids to encourage development projects, according to the Times of India Group.

The ministry has now invited bids asking manufacturers to quote the lowest price ex-factory price that they can offer to road developers. Soon after taking charge of the ministry, Gadkari had proposed long-term contracts with cement majors across the country to purchase the construction material at a lower cost and shift to concrete roads, which are seen to be more durable.

Sources said while welcoming the manufacturers and presenting how its move to build more cement concrete roads would bring them more business, Gadkari said that the manufacturers must not end up creating cartels to push up prices.

“Though upfront investment in case of cement concrete roads is 15-20 per cent higher than bitumen roads, if the price of cement bags can be brought down it would be a better proposition,” said a ministry official.