On withdrawal of ST incentives
I think at the current prices most projects are unviable and that is one reason why the prices will reach remunerative levels. In a way, the sales tax concessions were artificially distorting the market. Manufacturers who were enjoying the benefit were not allowing the prices to reach the remunerative levels.

On utilisation of the incentives
When a new plant comes up, the first thing that is sought to be ensured is that the entire quantity is placed in the market. The tax incentive is used as a competitive edge not for financial gains, but to gain an entry into the market. And the incentive is substantial at Rs 250-300 per tonne.

On region-wise demand-supply
Some regions of the country will always remain surplus. But, it is not a major concern as once the country, as a whole, has a situation where the demand is in tune with the supply, prices will rise in all the regions.

The south will continue to have surplus capacity probably till 2001. The western region will also continue to have surplus capacity for a long time. Among the states, Gujarat will have surplus. The northern region will witness the supply-demand balance getting struck the fastest, as it is achieving the highest growth rates in demand.

On demand growth
In the first half, there is no way demand will continue to grow. This, because the base that we were comparing with was artificially depressed. So the numbers were distorted. In the second half we will return back to normal growth rates of around 8 per cent. Through the year, as a whole, demand will grow by at least 13-14 per cent. And if we see the economy doing around 6 per cent, we could well witness a double-digit growth in the next year.

On RMC
RMC has seen rapid growth in the past and has high potentials for future growth. The construction industry is fast changing and as it gets more technology savvy, RMC will be more in demand. Also, with an increase in infrastructure projects, use of RMC will rise. Hence, the next 5-7 years will witness high growth.