Far too harsh on cement
It is a very positive budget. I would rate it anywhere between 8 and 9 on ascale of 10. The finance minister could not have done better than this. Hehas encompassed all sectors of the economy and made a sincere attempt tocreate an environment for a higher economic growth.He has taken forward the initiatives in the infrastructure sector. Thegovernment's keenness to get on with road projects is commendable. What thefinance minister must also focus on is implementation of these projects. Ifthe targets set for investment and award of contracts for major road andother infrastructure projects are achieved, it would spur demand. This iscritical because industry will revive only if there is demand stimulation inthe economy.
As far as our industry is concerned, Mr Sinha has not been too kind to thecement sector. The reduction in custom duty on cement and clinker from 35per cent to 25 per cent was not really necessary. Domestic cement prices areactually not high. He seems to have succumbed to pressure from builders andthe hype created by the media on cement price rise.
Mr Sinha has also taken some bold decisions, the most prominent being theinitiatives on labour reforms. Industry has to be given flexibility to dealwith labour and prevent sickness.
(Suresh Neotia is chairman, Gujarat Ambuja Cement)
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
