Agencies

New Delhi, Dec 10: Major cement manufacturers, including ACC, Ambuja Cements and Shree Cement, on Tuesday announced price cuts by up to Rs 7 per bag in response to the government's move to reduce CENVAT by 4%. The companies, however, have not passed on the entire benefit of excise duty cut due to hike in railway freight by about 8% from Monday.

Led by the country's largest manufacturer ACC, leading firms like Ambuja, JK Lakshmi, JK Cement, Dalmia Cement and Shree Cement have slashed their rates. Cement is available between Rs 150 and Rs 250 across the country.

ACC cut the prices by up to Rs 5 per bag, while Ambuja Cements reduced by up to Rs 6 per bag at different places across the country.

"The Indian Railways have increased the freight tariff by changing the classification for coal and cement which is expected to push the prices of cement up by Rs 1.50 to Rs 2 per bag. After factoring in the increased railway tariff, the price of our cement is expected to go down by Rs 4 to Rs 6 per bag from today," Ambuja Cements said.

The maximum amount of reduction was announced by Delhi-based JK Lakshmi Cement by up to Rs 7 a bag.

The company's whole time director Shailendra Chouksey said the highest quantum of reduction would take place in Uttarakhand, while in Delhi it would come down by Rs 5. "We are also evaluating the freight charge hike by the Railways. This reduction (in cement prices) has been done considering that fact also," Chouksey said.

Other manufacturers like JK Cement, Shree Cement and Dalmia Cement have also reduced cement prices between Rs 4 and Rs 5 across the country.