Debasish Acharya, OP
Bhubaneswar, Dec 26: The hike in import duty on petcoke will not affect real estate in the state, say representatives from the sector. According to Nishith Ranjan Nanda, the secretary of the Association for Real Estate Developers (AFORD), the hike likely from January, will result in only a minimal rise in the price of cement.
“The move will not impact the real estate in the state greatly as we have faced similar hikes on account of other factors such as transport and fluctuating local taxes that have been streamlined post GST,” Nanda told Orissa POST.
Susim Patra, the vice president (marketing) of JK Lakshmi Cement, while conceding that cement prices are bound to increase by Rs3 to 4 a bag despite Supreme Court relaxation on the use of petcoke by cement companies, said: “The increase in prices will be minimal, but the decision will affect players who rely entirely on petcoke. The hike will result in the average cost of production for cement firms going up by Rs50 to Rs60 per tonne and it is likely that firms will pass the hike on to consumers; but that won’t affect sales in the state,” Patra said.
Referring to pollution caused by petcoke he said in cement plants it is absorbed within the kiln and leaves only traces of pollution, unlike in power plants. He added that the company, which used to depend completely on petcoke, may get affected by the duty hike more than other company that are not so dependent.
Cement companies are likely to continue with using petcoke as fuel rather than coal as such a switch would entail increase in quantum of input materials by 30 to 40 per cent.
“Also, petcoke is priced 10 to 12 per cent higher than imported coal; but volumes of petcoke required are much lower than that of coal, which makes it cost effective for cement makers and encourages them to use the fuel,” he added.