Budget Impact on Cement sector
Overall impact: Neutral
Excise Duty
Special Excise Duty of 16% has been abolished
on White Cement. Only CENVAT at the rate of 16% will now be applicable.
Customs Duty
Customs duty on cement and clinker has been
reduced from 25% to 20%. This will inhibit the ability of manufacturers to
raise prices.
Customs Duty (Basic)
Product
2000-01
2001-02
2002-03
Cement
35%
25%
20%
Non-coking Coal
25%
25%
25%
Excise Duty Rs/Tonne
Product
2000-01
2001-02
2002-03
Cement - Large Plants
350
350
350
Cement - Mini plants
200
200
200
White Cement
24%
32%*
16%**
* Excise duty
on white cement was on MRP with an abatement of 40%
** Excise duty on white cement is on MRP with an abatement of 35%
Other Changes
Reduction in prices of petrol & diesel by
Re 1 per litre and 50 paise per litre respectively will benefit many industries,
including cement.
Continued thrust given to the Housing sector
and the completion of the Golden Quadrilateral Project by Dec 03, a year ahead
of schedule should have a positive impact during the next fiscal.
