NEWS........

In yet another twist to the ongoing spat between the Government and the cement manufacturers, the Centre on Tuesday announced that it was doing away with 16% Countervailing Duty (CVD) and 4% Special Additional Duty (SAD) on Portland Cement.
"The Government expects that the cement manufacturers, in the larger interests of consumers and for checking inflation, will take appropriate measures for moderating cement prices,'' the Finance Ministry said in a statement.
The move is likely to make imported cement cheaper than domestic cement. At present, imported cement is slightly expensive than local cement. Average cement prices increased to Rs220 per 50-kg bag in March from Rs165 in January and Rs209 in February, the Government said.
The Government, with a view to keep prices of cement in check, had fully exempted basic customs duty on portland cement in January. The cement industry was requested to moderate prices in the interest of the consumer. However, the industry is of the view that prevailing high prices are a consequence of a demand-supply mismatch. "It is expected that the present move will improve supply situation in the country," the Finance Ministry said.
The Government has already invited cement manufacturers to come forward with proposals to moderate the price of cement. "The Centre expects that cement manufacturers, in the larger interests of consumers and for checking inflation, will take appropriate measures for moderating cement prices," the Finance Ministry said.
It may be recalled that the Government has been seeking a reduction in cement prices for quite some time now, but cement makers have refused to toe the Centre's line, offering to freeze prices at the current level for a year.
The standoff between the Government and cement manufacturers started when Finance Minister P. Chidambaram announced a dual excise duty structure on cement in the Budget for the year 2007-08.
Chidambaram proposed an excise tax of Rs600 per metric ton on cement sold at more than Rs190 a 50-kg bag. For cement priced below Rs190 a bag, the tax was cut to Rs350 a ton from Rs400 starting April 1.
In response to the Finance Minister's move, the cement companies raised the prices and have repeatedly turned down the Government's call for a cut in cement prices, leading to a deadlock over the issue.