Ambuja Cements cuts cement prices by Rs 6 per bag
Ambuja Cements cut prices up to Rs 6 per bag in response to the government's move to reduce CENVAT by four per cent.
By PTI |
NEW DELHI: Ambuja Cements on tuesday cut prices up to Rs 6 per bag in response to the government's move to reduce CENVAT by four per cent.
The Mumbai-based firm said in a statement that its 50-kg bag would now be cheaper by Rs 4-6, depending on location.
Meanwhile, effective from yesterday, the Railways increased freight charges on cement by about 8 per cent.
"The Indian Railways have increased freight tariff by changing the classification for coal and cement, which is expected to push cement prices up by Rs 1.50 to Rs 2 per bag. After factoring in the increased railway tariff, the price of ACL cement is expected to go down by Rs 4-6 per bag from today," the statement said.
The company, however, expressed disappointment because duties on clinker were not cut.
"The government has not declared a similar reduction in excise on clinker, which stays at Rs 450 per tonne. Clinker is the base raw material for manufacturing cement. ACL expects the government to shortly announce proportionate reduction in excise duty on clinker, thereby bringing down tax incidence on cement," the company said.
The Mumbai-based firm said in a statement that its 50-kg bag would now be cheaper by Rs 4-6, depending on location.
Meanwhile, effective from yesterday, the Railways increased freight charges on cement by about 8 per cent.
"The Indian Railways have increased freight tariff by changing the classification for coal and cement, which is expected to push cement prices up by Rs 1.50 to Rs 2 per bag. After factoring in the increased railway tariff, the price of ACL cement is expected to go down by Rs 4-6 per bag from today," the statement said.
The company, however, expressed disappointment because duties on clinker were not cut.
"The government has not declared a similar reduction in excise on clinker, which stays at Rs 450 per tonne. Clinker is the base raw material for manufacturing cement. ACL expects the government to shortly announce proportionate reduction in excise duty on clinker, thereby bringing down tax incidence on cement," the company said.
ADVERTISEMENT
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
