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Subramanian Swamy seeks ban on import of cement from Pakistan

06 Oct 2016

Amidst rising tension, BJP leader and Rajya Sabha MP Subramanian Swamy
has urged Prime Minister Narendra Modi to ban import of cement from Pakistan in the
interest of domestic industry and national security.
"I request you to ban import of cement into the country not only in the interest of growth and
sustenance of domestic cement industry but also in keeping with the imperatives of national
security. Ban of import from Pakistan will be in the interest of the country's security in the
present juncture," Swamy said in a letter to Modi.
He said import of cement without levy of customs duty was introduced in 2007 to augment
supply in view of high demand.
He said the situation has since changed and the domestic industry has added a lot of
capacity which is not being utilised, with around 116 million tonnes cement capacity lying idle
due to stagnating demand in the country.
He also referred to reports of recovery of drugs like heroin and fake Indian currency notes concealed in cement bags imported from
Pakistan.
"Allowing imports of cement from Pakistan, therefore, carried with it the additional risk in that it provides an effective cover for smuggling of
contraband goods and harmful weapons and ammunition concealed in cement bags which comes in rakes and trucks, in the hands of
disruptionist elements," he said.
The BJP leader said the industry today has a capacity utilisation of less than 70 per cent with units in South India posting even lesser
capacity utilsation. He further said that capital investment of more than Rs 90,000 crore required for creation of this capacity is lying
stranded.
"India has become a dumping ground for imported cement, particularly from Pakistan, China and Bangladesh. It is ironical that while on
every front Pakistan continues to trouble us, India continues to allow duty­free import of cement from Pakistan at the cost of Indian cement
industry," he said.
Swamy said importing cement with higher margins from Pakistan also goes against the 'Made in India concept'... This also strikes at the
very root of your vision of the concept of 'Making in India'," he said.
The BJP leader said there is reverse charge duty structure as material required for cement manufacture attracts import duty while the
finished product is not.
 
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