August 22, 2008

Indian government may invoke old act for cement industry

BL reported that Indian government is contemplating using Section 18G of the Industries (Development and Regulation) Act, 1951, which empowers it to regulate prices and supplies of industrial commodities without bringing them under Essential Commodities Act.

This provision, Section 18G, which has not been used for almost 19 years after a cabinet decision in 1989 not to invoke it, provides for control on prices and supplies of industrial products without bringing them under the purview of the Essential Commodities Act under which powers are vested with states.

Mr Ashwani Kumar Indian minister of state for industries told BL that his ministry is conducting a study on whether the cement industry is into cartelization and profiteering. He said that “Our Ministry is analyzing the pricing of the cement industry. If there is any prima facie evidence, we will resort to the strictest administrative measures to ensure fairness and reasonability of prices.”

As per report, the analysis is being done on the basis of data provided by public sector Cement Corporation of India, the Bureau of Industrial Costs and Prices, the National Productivity Council, Cement Manufacturers Association and also private players.