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The A to Z of Cement Industry in Karnataka

    Categories: Industry

Karnataka is a prominent name in the field of industrial growth in India. The cement industry in Karnataka is one of its largest and fastest growing industries. India is the 2nd largest cement producing country in the world. Karnataka produces more than 11 million tons of cement annually. It contributes to 6.51% of the total cement manufactured in India. The state occupies 7th position in the cement production of the country. Karnataka has more than 16 cement industries. It exports more than 0.01 million tons of cement.

Key factors influencing the growth of the cement industry in Karnataka

The infrastructure and construction sector in Karnataka is expanding at a rapid rate. This provides a lot of potential for the industry to grow in the state. The main factors behind the growth of the cement industry in Karnataka are:

  • Karnataka produces top quality cement in the country.
  • The cement industries in the state use advanced technologies.
  • Karnataka has available human resource.
  • The state is rich in mineral wealth that is needed for production.
  • Limestone is an essential raw material for cement production. The state has around 17,253 million tons of limestone deposits.
  • Huge limestone deposits are present in the districts of Bellary, Gulbarga, Bijapur, Shimoga, Belgaum, Uttar Kannada, Chitradurga, and Tumkur.
  • The state government has granted leases to 126 companies for mining limestone in the state. These companies extract more than 16.29 million tons of limestone annually.
  • International cement producing companies like Heidelberg from Germany and Lafarge from Switzerland have established their presence in the state. This has given the sector a major boost.
  • Gulbarga in Karnataka is one of the seven cement clusters located in the country.
  • The state government has acquired large stretches of land in prime locations for the development of cement industries. These locations are rich in limestone reserves. They also have good connectivity. Such locations include Bijapur, Gulbarga, Shimoga, Dharwad, Hassan, Tumkur, Chitradurga, Bellary, Belgaum, etc.
  • The state has an industrial zone specially marked for the cement industry. This cement corridor covers the districts of Bagalkot, Belgaum, Gulbarga, and Chitradurga.
  • Several big cement projects have been approved by the state government in the last few years. These projects are adding to the growth of the cement industry in the state.
  • The demand for cement in the state is steadily increasing due to new housing projects, infrastructure developments, laying and repairing of concrete roads, and upcoming smart city projects.
  • Commercial constructions are increasing day by day in the state. New projects for the building of hotels, offices, retail spaces, and other commercial projects are also ensuring the growth of the cement industry.
  • Metro rail project in Bangalore and the development of civil structure such as hospitals and schools throughout the state are influencing the cement industry’s growth in the state.
  • The neighbouring states of Karnataka procure cement from the cement plants located in the state.
  • The cement plant at Wadi is among the largest plants in the world.

Policies and initiatives by the state government to boost the Cement Industry in Karnataka

The cement industry in Karnataka plays a vital role in its economy. It is a source of employment for a large number of people. The industry also attracts huge investments for the state. The state government wants to strengthen the cement sector within the state. The government has come up with many policies and initiatives for the same. These include the following:

  • The government of Karnataka has established Special Industrial Zone for the cement sector in various districts.
  • Karnataka has declared concessions for mega projects in the cement sector.
  • The state government has declared cement industry as one of the focused industries in its industrial policy.
  • The government is providing financial incentives to the industry under the Karnataka Industrial Policy.
  • The Karnataka government proposes to provide infrastructure facilities needed for the growth of the cement industry.

Challenges faced by the industry

The cement industry in Karnataka is growing at a fast pace. But it is also facing several hurdles that can slow down its growth. A few challenges faced by the cement industry in Karnataka are:

  • The cost of the raw materials is increasing.
  • The rising price of coal is adding to the fuel cost of the industry.
  • Transportation costs are growing.
  • The increase in diesel prices is impacting the industry.

Investment opportunities in the cement sector in Karnataka     

Karnataka offers attractive investment opportunities in the cement sector. Some of the points that highlight Karnataka as a destination for investment in the industry are:

  • Discount in stamp duty and loan agreements
  • Exemption of entry taxes
  • Interest-free loans
  • Subsidy for anchor units and interests
  • Availability of natural and human resources
  • Strong infrastructure for the cement industry’s growth

The future of the cement industry in Karnataka

Karnataka produces various kinds of cements. Cement is an important element for the growth and development of the state. There is no alternative to this product in the construction industry. As the state proceeds on the road of development, it is helping the industry to attain further growth. So, the road ahead seems to be bright for the cement industry in Karnataka.

Also See

Other Industries in Karnataka

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