Housing sector to boost cement demand

Our Corporate Bureau
22 July 2002

Mumbai: As per the current estimates, India faces a shortage of over 20 million dwelling units. This backlog is growing day by day. Housing is one of the basic necessities of the common citizen apart from food, health and education where India is lagging behind as compared to many other countries in the developing world.

Most of our homeless people in India are living in urban slums. Indias urban population is the second largest in the world with the urban sector contributing to 60 per cent of the countrys gross domestic production.

It has been seen that urban development leads to improvement in the demand for housing. Therefore, construction of urban housing plays an important role in economic growth. India desperately needs a rapid creation of affordable basic dwelling units, both in urban and rural areas. The huge backlog of this activity requires the state to play a dominant role as facilitator, promoter and financier.

There is no dearth of land in this vast country to help construct these homes. All that the government needs to do is to help with enabling legislation in making the required extent of land available. We are also blessed with all the raw materials required for basic construction, such as steel, cement, tiles and timber.

In particular, cement and concrete can contribute significantly in facilitating construction of low-cost housing. Indias cement industry is widely scattered throughout the country. The industry can offer among the cheapest rates in the world with very high-quality levels meeting global standards.

The Indian cement industry has adequate unutilised capacity to help meet any upsurge in demand. Availability of adequate cement at economic rates is therefore not a constraint. The housing sector by a rough estimate can consume over 50 million tonnes of cement to help clear the backlog.