9APRIL 2024TOP STORIESCEMENT PRICES TO INCREMENT BY RS.10-15/UNIT THIS MONTHCement producers across India are gearing up to implement price adjustments of roughly Rs 10-15 per bag this month despite a subdued demand climate in the lead-up to general elections. While certain areas, notably southern India, might witness more significant upticks, industry insiders speculate that increases ranging from Rs 10-20 per bag are poised to be more sustainable.In the preceding five months, cement prices have exhibited a consistent downward trajectory, resulting in an average decline of 5-6 percent in prices for the March quarter compared to the preceding December quarter. This trend has been particularly noticeable in eastern and southern India. Despite projections indicating a 6-8 percent year-on-year expansion in volumes during the January-March period, cement manufacturers have grappled with the challenge of boosting prices.Kotak Institutional Equities attributes the prevailing price weakness to fierce competition among major players vying for market dominance, compounded by deflationary pressures on costs.The anticipated price hikes in April may assist cement producers in offsetting some of the adverse impacts of decreased volumes during the quarter. However, analysts stress the significance of the sustainability of these hikes, especially in light of the anticipated lackluster demand due to the impending general elections. Should demand falter, there looms the possibility of either partial or complete reversal of these hikes.Regional variations in price hikes are expected, with southern India forecasted to witness increases in the range of Rs 30-50 per 50 kg bag, while central India may experience hikes of Rs 15-20 per bag. North India is anticipated to see hikes of Rs 10-15 per bag, western India around Rs 20-25 per bag, and eastern regions approximately Rs 30 per bag. INDIAN OIL AND NPCIL EXPLORE POSSIBILITIES OF SETTING UP NUCLEAR REACTORSIndian Oil Corporation (IOCL), a state-run refiner and fuel retailer, is in the initial stages of discussions with the Nuclear Power Corporation of India (NPCIL) regarding the potential construction of small modular reactors (SMRs). These SMRs are considered a cost-effective alternative to larger nuclear plants and could provide clean power solutions for IOCL's refineries.Alok Sharma, Indian Oil's director for R&D, announced this partnership exploration during a conference in New Delhi. The collaboration aims to utilize SMRs to generate clean power within IOCL's refineries, contributing to sustainability efforts and reducing environmental impact.Small modular reactors (SMRs) have gained attention as policymakers seek alternatives to larger nuclear projects, which often face delays and logistical challenges. SMRs, with capacities of up to 300 MW, offer advantages such as quicker construction and greater flexibility to adapt to grid requirements.In addition to Indian Oil, other state-controlled companies such as NTPC and ONGC are also exploring opportunities in the nuclear sector. The Indian government is considering measures to support the growth of the small-scale nuclear technology sector, including potential involvement of private firms in managing and operating reactors.This move underscores India's commitment to diversifying its energy mix and adopting cleaner and more sustainable power generation technologies, aligning with global efforts to combat climate change and promote renewable energy sources.
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