India: JK Lakshmi Advocates GST Reduction on Cement to 18% While Highlighting the Cost-Effectiveness of Cement over Bitumen

WPB: Arun Shukla, President and Director of JK Lakshmi Cement, has urged the Indian government to revise the Goods and Services Tax (GST) on cement, bringing it down from the current 28% to 18%. He emphasized the importance of this change, especially when comparing cement’s long-term economic advantages over bitumen, which is commonly used in road construction. Shukla pointed out that cement concrete roads, though initially more expensive than bitumen roads, are far more durable and cost-efficient over time.

During an interview with PTI, Shukla explained that reducing GST on cement is a critical measure to promote its consumption and address India’s growing infrastructure needs. He stressed that with an anticipated annual growth rate of 7-8% in cement demand, expanding production capacity has become essential. Speaking at the “Bihar Business Connect 2024” event, he referred to the reduction of GST on cement as a long-standing aspiration for the industry. “Cement is heavily taxed at 28%, the highest GST slab. Lowering it to 18% is a much-needed step,” Shukla said while outlining his expectations for the upcoming Budget.

Cement, according to Shukla, plays a foundational role in driving India’s economic progress by enabling the development of world-class infrastructure. He stressed the need to explore strategies to amplify cement consumption, remarking, “Cement is a key driver of economic growth, and increasing its usage is critical to supporting the nation’s development goals.”

Shukla highlighted the shortcomings of bitumen in road construction, stating that while bitumen is a widely used material, cement concrete roads outperform it in terms of durability and cost-effectiveness. “Cement roads last longer and require less maintenance compared to bitumen roads. Policymakers should consider this when setting construction standards and specifications,” he added.

To meet the rising local demand for cement, JK Lakshmi Cement is investing ₹500 crore in a new manufacturing facility in Madhubani, Bihar. This initiative follows the company’s Memorandum of Understanding (MoU) with the Bihar government during the 2023 investors’ summit. The plant, once operational, is expected to reduce reliance on bitumen-intensive infrastructure projects by promoting cement as a superior alternative.

The company has already secured land for the project and is in the process of obtaining the required approvals. Shukla confirmed that the plant would be operational within a year, showcasing JK Lakshmi Cement’s commitment to regional development and its role in India’s transition towards sustainable infrastructure built on cement rather than bitumen.

By Bitumenmag

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