-
CHAPTER II
HISTORICAL REVIEW OF CEMENT INDUSTRY IN INDIA
AND PROFILE OF THE CEMENT FACTORIES IN
SOUTH TAMIL NADU
2.1 Introduction
2.2 History of the Cement Industry
2.2.1 Historical Usage of Cement
2.2.2 The Working Group on Cement Industry
2.2.3 The Manufacturing Process and Technology
2.2.4 Major Varieties of Cement
2.2.5 Exports of Indian Cement Industry
2.3 Profile of the Study Units
2.3.1 Geographical Area of the Study Units
2.3.2 Madras Cements Limited (MCL)
2.3.3 India Cements Limited (ICL)
2.3.4 Tamil Nadu Cements Corporation (TANCEM)
2.3.5. Labour Welfare Facilities
-
44
CHAPTER II
HISTORICAL REVIEW OF CEMENT INDUSTRY IN INDIA
AND PROFILE OF THE CEMENT FACTORIES IN
SOUTH TAMIL NADU
2.1 INTRODUCTION
The present chapter is devoted for the presentation of a brief
account about the
origin and growth of cement industry in India as well as in the
State of Tamil Nadu.
It also reviews the profile of the three cement factories
located in the study area
namely, South Tami Nadu.
2.2 CEMENT INDUSTRY IN INDIA
2.2.1 Cement Meaning and Definition
The word cement had come from the Latin Verb to cut and
originally it
might had some reference to the stone cuttings used in the
production of lime mortar.
Thus it is logical that during the middle ages the lime mortar
itself had been used as
cement. In its modern usage, cement generally refers only to the
chemical binder, and
the term might be used with respect to any material serving such
a purpose.1
According to Robert G. Blezard,2
Cement may be defined as adhesive substances
capable of uniting fragments or masses of solid matter to a
compact whole.
-
45
2.2.2 The Working Group on Cement Industry
The development and growth of the cement industry is considered
as one of
the important indicators of a countrys economic development.
Hence, India is
giving very importance to cement production.3
The first cement factory was
established in India in the year 1904 by the South India
Industries Limited, Madras,
to produce Portland Cement. But the factory had failed to take
off and it was closed.
The first successful cement unit in India came into being in the
year 1912-1913 at
Porbandar in the Gujarat State. In 1914, this unit was said to
have produced about
1000 tonnes of cement per annum. In 1947, the Indian Standard
Specifications (ISS)
were applied to test the quality of cement instead of the
British Standard
Specifications (BSS).4
In the same year, the installed capacity of the cement
industry
rose to the level of 2.2 million tonnes per annum.
After the partition of the country, five of the cement producing
units had gone
to the Pakistan territory and the total installed capacity of
the 18 units that had
remained in India was 1.5 million tonnes per annum.5
The cement industry had gone through a phase of planned
development during
the period of the five-year plans in India. The working group on
cement industry was
constituted by the Planning Commission for enabling the growth
and development of
the cement industry during the Tenth Plan period. It had
projected a growth rate of 10
-
46
per cent for the cement industry and had recommended the
creation of an additional
capacity of 40 to 62 million tonnes, mainly through the
expansion of the existing
plants during the Tenth Plan period.6
A profile of the cement industrys
development during the five-year plan periods is presented in
Table 2.1.
TABLE 2.1
GROWTH OF CEMENT INDUSTRY IN INDIA THROUGH
FIVE YEAR PLANS
Five Year
Plan
Year Capacity Actual
Production
Percentage
of Capacity
Utilisation
Average
Annual
Growth
Rate
I Plan 1955-56 5.02 4.60 91.63 --
II Plan 1960-61 9.30 7.97 85.69 85.26
III Plan 1965-66 12.00 10.97 91.42 39.78
IV Plan 1973-74 19.76 14.66 74.19 64.67
V Plan 1978-79 22.58 19.42 86.00 14.27
VI Plan 1984-85 42.00 30.13 71.74 86.00
VII Plan 1989-90 61.55 45.41 73.78 46.55
Annual Plan 1990-91 64.36 48.90 75.98 4.57
Annual Plan 1991-92 65.56 53.61 81.77 1.86
VIII Plan 1992-93 70.19 54.08 77.05 7.06
1993-94 76.96 57.96 75.31 9.65
1994-95 83.79 62.35 74.41 8.87
1995-96 95.76 69.63 72.71 14.29
1996-97 105.25 76.22 72.42 9.91
IX Plan 1997-98 110.51 83.16 75.25 4.98
1998-99 118.97 87.91 73.89 7.66
1999-00 118.16 100.29 84.88 0.68
2000-01 132.47 100.11 75.57 12.11
2001-02 145.99 106.90 73.49 10.21
X Plan 2002-03 151.17 116.35 76.97 3.55
2003-04 157.48 123.50 78.42 4.17
2004-05 164.69 133.57 81.10 4.14
Source: CMA Annual Report, 2004-2005.
Note : Mini Cement Plants are also included.
-
47
Table 2.1 reveals that the productive capacity of the cement
factories in India
had increased from 5.02 million tonnes in 1955-56 to 164.69
million tonnes in
2004-05, which had accounted for an increase of nearly 32 times
between the First
and Tenth Plans. But the actual production had gone up from 4.60
million tonnes to
133.57 million tonnes during the same period and this accounted
for an increase of
nearly 28 times. It had shown that the actual production of
cement had not increased
to the level of its full capacity. A declining trend could be
noticed in the percentages
of actual achievement, as shown in Table 2.1 which had proved
the fact that there
had been a relatively lesser growth in the actual production of
cement as compared to
that of the installed capacity of the cement industry in India
during the plan periods.
India had emerged as the second largest cement producer in the
world, next
only to that of China in the year 2006.7
At present, India produces around 128
million tonnes (about 6.4 per cent of the worlds production of
2000 million tonnes)
of cement and has an installed capacity of about 155 million
tonnes.8
Most of the
existing cement plants in India had modified their plants from
the wet process of
production to the energy efficient dry process. At present, out
of the 157 cement kilns
in the country, 117 are dry process-based, 32 are wet process
based and eight units
are semi dry process-based. At present 93 per cent of the total
installed capacity in
the industry is using the modern environment-friendly dry
process technology and
only the remaining 7 per cent of the installed capacity is based
on the old wet and
-
48
semi-dry process technologies. The induction of the advanced
technology process
had helped the industry in reducing its requirements of power
and fuel and in saving
the material inputs to a considerable extent. The cement
industry in India was free
from price and distribution controls from the 1st March 1989. It
was also de-licensed
on the 25th
of July 1991.9
2.2.3. The Manufacturing Process And Technology
Cement is manufactured in two stages Clinkering and Grinding. At
the
Clinkering stage, limestone and clay are mixed proportions in
specified and burnt in
a kiln to produce the clinker. The clinker is then ground along
with gypsum to obtain
cement.10
There are two major processes in the manufacturing of cement;
the wet
process and the dry process. In the wet process, the mixture of
the limestone and clay
is fed into the kiln in a semi-liquid form as compared to the
dry process where the
mixture is fed into the kiln in the form of a dry powder. There
is relatively a lower
level of energy consumption in the dry process of producing the
cement. Hence, the
dry process is considered to be more energy efficient as
compared to the wet process
in the manufacturing of cement.11
2.2.4 Major Varieties of Cement
The three major varieties of cement are Ordinary Portland Cement
(OPC)
Portland Pozzolona Cement (PPC) and Portland blast furnace Slag
Cement (PBFSC).
-
49
Besides these varieties, specially cements like white cement,
oil well cement,
rapid hardening cement, hydrophobic cement, high alumina cement
and sulphate
resistant cement are also manufactured for specific applications
and for specific uses.
TABLE 2.2
MAJOR VARIETIES OF CEMENT
Ordinary
Portland Cement
(OPC)
Portland
Pozzolana Cement
(PPC)
Portland Blast Furnace
Slag Cement (PBFSC)
Ingredients
Clinker 95 per cent +
Gypsum 5 per cent
Clinker 70 per cent
+
Flayash upto 25 per
cent
+ Gypsum 5 per cent
Clinker 30 to 75 per cent
Blast furnace slag upto
25 to 65 per cent +
gypsum 5 per cent
Application Best suited for all
kinds of Masonary
work and for small
concrete works
High strength cement
suitable for mass
concrete works like
dams and large
foundations.
Ideal for
construction in hot
and humid areas.
Source: CMA Annual Report 2004-05.
Table 2.2, exhibits that the ingredients of the ordinary
portland cement
consists of 95 per cent of clinker, which is a combination of
limestone and gypsum.
The limestone is a costly material and it is also a depleting
resource. Hence, the
production of blended cement (PPC + PBFSC) is more than that of
the OPC in the
world.
-
50
2.2.5 Export Performance of Indian Cement Industry
Apart from meeting the domestic demand, the cement industry also
exports
cement and clinker. Because of its world class quality Indian
cement had found
favour with the overseas markets also. Cement exports from India
had commenced in
the year 1988-89 and it had risen steadily till the year
1993-94. The exports of
cement were steady at around 2.5 to 3.0 million tonnes between
1993-94 and
1996-97. The exports had declined from 4.40 million tonnes in
1997-98 to 3.14
million tonnes in the year 1999-2000 due to excess capacity in
the East Asian region
and the depressed demand for cement following the East Asian
Financial Crisis.12
The export prospects of cement and clinker from India had
improved
considerably in the years 2004-05 and 2005-06 with a boom in the
construction
activities in West Asia. The exports of cement rose by about 21
per cent and clinker
by about 6.2 per cent in the year 2004-05. Indian cement
industry exports around 4
million tonnes of cement annually. At present Ultra Tech Cement
(UTC) is the
Indias largest exporter of cement and clinker. It exports over 3
million tonnes of its
products annually accounting for 40 per cent of Indias total
exports.13
Cement is exported by India to her neighbouring countries such
as
Bangladesh, Myanmar, Nepal, Indonesia, Malaysia and Srilanka
while clinker is
exported to the Middle East, West Asia and the African
countries. The Indian cement
-
51
is costlier in the world market due to its higher input costs
and higher taxes, and other
levies and royalty charges and also due to its high transport
costs. The export
performance of the cement industry for the period 1995-96 to
2004-05 is presented in
Table 2.3 which is followed by a graph.
TABLE 2.3
EXPORTS OF CEMENT AND CLINKER
(Million tonnes)
Year Cement Annual
Growth
Rate
Clinker Annual
Growth
Rate
Total
1995-96 1.51 -- 0.90 -- 2.41
1996-97 1.71 13.25 0.94 4.44 2.65
1997-98 2.68 56.73 1.72 82.98 4.40
1998-99 2.06 -23.13 1.45 -15.70 3.51
1999-00 1.95 -5.34 1.19 -17.93 3.14
2000-01 3.15 61.54 2.00 68.07 5.15
2001-02 3.38 7.03 1.76 -12.00 5.14
2002-03 3.47 2.66 3.45 96.02 6.92
2003-04 3.36 -3.17 5.64 63.48 9.00
2004-05 4.07 21.13 5.99 6.21 10.06
Source: CMA Annual Report 2004-05.
-
52
Table 2.3 clearly discloses that the cement exports of India had
increased from
1.51 million tonnes in the year 1995-96 to 4.07 million tonnes
in 2004-05 which had
accounted for a 169.54 per cent growth on exports of cements.
Exports of clinker had
registered a 565.55 per cent increase during the same period.
However, total exports
had gone up by 317.43 per cent during the period under review.
It would be further
evident from Table 2.3 that the exports of cement and the
exports of clinker had
recorded a steady growth albeit slight ups and downs during the
period 1997 to 2000.
2.3 PROFILE OF THE STUDY UNITS
The cement industry is basically a capital-intensive industry
serving as the
backbone for the infrastructural growth of the economy. It is an
industry which has
the highest backward and forward linkages with the economy and
is closely related to
the overall economic growth of the country.
In this part, the researcher had made an attempt to provide a
profile of the
study units in terms of their location, installed capacity, the
presence of trade unions
and the labour welfare facilities provided by each of the study
units.
2.3.1 Study Area
For the present study, the South Tamil Nadu has been selected as
the study
area. Traditionally South-Tamil Nadu was construed as the area
comprising of the
-
53
Madurai, Ramnad and the Tirunelveli Districts (MRT Districts).
The Government of
Tamilnadu had divided these districts (MRT Districts) into a
number of other districts
also for the sake of administrative convenience. Those three
districts had now
become nine districts, namely, Ramanathapuram, Sivaganga,
Virudhunagar,
Madurai, Theni, Dindigul, Tirunelveli, Tuticorin and
Kanniyakumari. Hence, these
nine districts constitute the geographical area for the purpose
of the present study.
There are only three cement factories situated in the study area
considered for
the present study. Of them, one is the Madras Cements Limited
Ltd., (MCL) located
at Ramasamy Raja Nagar, Thulukkapatty and the second one is the
Tamilnadu
Cements Corporations (TANCEM) located at Alangulam. Both of them
are located in
the Virudhunagar district. The third one is India Cements Ltd.,
(ICL) located at
Sankar Nagar (Thalayuthu) in the Tirunelveli district.
2.3.2 Madras Cements Limited (MCL)
The Madras Cements Limited (MCL) is the flagship company of the
Ramco
group of industries having a capital worth of Rs. 1200 crores.
It was founded in the
year 1957 by the late Sri. P.A.C. Ramasamy Raja who was a
Philanthropist. The
company is managed by a Board consisting of 10 Directors. The
Group is presently
being headed by the Chairman and Managing Director, Shri. P.R.
Rama Subramaniya
Rajha, son of its founder. He had been associated with a group
of companies from the
-
54
year 1963 onwards and under his able leadership the Group had
achieved many
laurels. In Particular, The Madras Cements Limited had scaled
very great heights.
The company has three cement plants, one at Ramasamy Raja Nagar,
in the
Virudhunagar district in the State of Tamil Nadu, which is one
of the study units; the
second one is located at Jayanthipuram, Krishna District in the
State of Andhra
Pradesh and the third one is situated at Alathiyur, in the
Ariyalur District in the State
of Tamil Nadu. However, the present study had taken into
consideration only,
Ramasamy Raja Nagar unit, as the location of the other two units
do not come under
the description, the Southern part of Tamilnadu.
TABLE 2.4
VARIOUS PLANTS OF MADRAS CEMENTS LIMITED
Sl.
No.
Plant Location State Year of
Inception
Present
Productive
Capacity in
000 tonnes
1. Ramasamy
Raja Nagar
R.S. Raja
Nagar* Tamil Nadu 1961 750.00
2. Jayanthipuram Jaggayyapet** Andhra
Pradesh 1986 1600.00
3. Alathiyur
Works I Alathiyur** Tamil Nadu 1997 1360.00
Alathiyur
Works - II Alathiyur** Tamil Nadu 2001 1 760.00
Source: Annual Report 2004-05, Cement Manufacturers
Association.
* Located in the study area.
** Not located in the study area.
-
55
The R.R. Nagar factory was the first cement plant to be set up
by the Madras
Cements Limited at Ramasamy Raja Nagar. It was a wet process
cement plant with
an annual productive capacity of 0.20 million tonnes and had
commenced its
operations in the year 1961. Another wet process kiln with an
annual installed
capacity of 0.35 million tonnes was installed in the year 1963.
In a major move
towards technology upgradation, the existing two wet process
kilns were scrapped on
1977 and production was switched over to the dry process.
Currently, the capacity of
this plant is 0.75 million tonnes per annum. This factory got
its ISO 9002 certificate
from the Bureau of Indian Standard (BIS) on October 16th
, 1994. This is the first
factory which had adopted the dry process in cement production
in India. The
company was also the first in India to install the use of the
X-ray analysis for the
hour to hour quality monitoring about the raw materials. The
limestone quarry which
supplies raw-materials for cement production is fully mechanised
with the latest giant
excavators, loaders and hauling dumpers. The electrostatic
precipitators had been
installed at all strategic stages for purposes of pollution
control.
The limestone, the basic raw-material that was required for the
production of
cement in the Ramasamy Raja Nagar factory was being extracted
from the main lime
stone quarry at Pandalkudhi, Near Aruppukottai, in the
Virudhunagar district in the
State of Tamil Nadu. Nearly 100 workers are engaged in the lime
stone quarry for the
extraction of lime stone. At present 499 workers are working in
the factory in
-
56
different types of work on a permanent basis. The permanent
workers are being paid
under the wage board system. The wages of the workers would be
revised every five
years by the National Wage board settlement process. In addition
to the permanent
workers, about 150 workers are also appointed on a contract
basis for carrying out
various terms of works. However, the present study had taken
into consideration only
the permanent workers for the reason that the number of
temporary workers is not a
fixed one and they were employed either on an hourly basis or on
a daily basis. The
factory had reduced the strength of the workers by enforcing the
Voluntary
Retirement Scheme (VRS). In order to carry out the managerial
functions 55
managerial persons are working in the different departments of
the factory.
It is a practice among the workers to join any of the trade
unions as members
according to their will and pleasure wish. The following three
trade unions were
functioning in this factory at the time of the research
study.
1) Madras Cements National Workers Union (INTUC).
2) Madras Cements Dravidian Employees Progressive Union
(DMK).
3) Madras Cements Anna Thozhilalar Sangam (ADMK).
The personnel department of this factory had been regularly
arranging for
periodical training programmes to all its workers. It was
expected to develop a
-
57
cordial relationship and promote the mutual understanding
between the workers and
the Management.
2.3.3 India Cements Limited (ICL)
India cements was founded in the year 1946 jointly by Late
S.N.N.Sankaralinga Iyer and Late T.S. Narayanaswami. Since then,
the India
cements limited had started its march towards the attainment of
excellence. The
company is managed by a Board consisting of 10 directors.
Experts from various
fields such as Administration, Banking, Law and Finance are
included as members in
the Boards of Directors. Besides, it also includes the nominee
of the Industrial Credit
Investment Corporation of India (ICICI) Limited, Unit Trust of
India (UTI), Life
Insurance Corporation of India (LIC) and the Industrial
Development Bank of India
(IDBI). The present Chairman N. Sankar and the Managing Director
and Vice
Chairman N. Srinivasan have contributed much to the development
and growth of the
factory. The Managing Director. N. Srinivasan had been the
President of the
Cement Manufacturers Association (CMA) also, since 2000.
The India Cements company has seven cement factories located in
the
different parts of our country. Among the seven factories, India
cements- Sankar
Nagar factory is one of our study units. Table 2.5 presents a
the clear picture of the
-
58
seven cement factories of India Cements Ltd., located in the
different parts of our
country.
TABLE 2.5
DETAILS ABOUT THE FACTORIES OF INDIA CEMENTS LIMITED
Sl.
No.
Plant Location State Year of
Inception/
Acquisition
Present
Production
Capacity
in 000
tonnes
Acquired
from
1. Sankar
Nagar Talayuth*
Tamil
Nadu 1946 1550.00 --
2. Sankar
Durg Sankaridurg**
Tamil
Nadu 1963 720.00 --
3. Chilamkur
Works Chilamkur**
Andhra
Pradesh 1990 1300.00
Coromandal
Fertilizers
Ltd.
4. Dalavoi Trichi** Tamil
Nadu 1997 1300.00 --
5. Visaka
Cement Tandur**
Andhra
Pradesh 1998 1120.00
Acquired
through the
subsidiary
6. Yerragunta Yerragunta** Andhra
Pradesh 1998 520.00
Cement
Corporation
of India
(CCI)
7. Rasi
Cement Wadapally**
Andhra
Pradesh 1998 2300.00
Rasi
Cement
Ltd.
Source: Annual Report 2004-05, Cement Manufacturers Association
(CMA).
* Located in the study area.
** Not located in the study area.
Sankar Nagar unit is the first cement factory to be commissioned
by the India
cements limited at Sankar Nagar, in the Tirunelveli District.
The initial capacity was
-
59
0.12 million tonnes per annum in the year 1946. The first
increase in the installed
capacity was made in the year 1956 from 0.12 million tonnes to
0.46 million tonnes.
In a major move towards technology upgradation, this plant was
switched over to the
dry process of production. Currently the capacity of this plant
is 1.55 million tonnes.
The factory has a lime stone deposit of 20 million tonnes. Based
on current
production levels, the lime stone reserves are expected to last
for another 10 years.
The cost of lime stone extraction is relatively high due to the
advanced stage of the
mines
At present, there are 458 wage board employees working in the
Sankar Nagar
factory. To look after the managerial activities of the factory
52 officers are
employed as managerial personnel. Only two trade unions are
functioning in the
factory. One is the India Cements General employees union and
the other one is
India cements National workers union.
2.3.4. Tamil Nadu Cements Corporation (TANCEM)
The Tamil Nadu Cements Corporation Limited is the public
sector
undertaking in the sphere of cement production in Tamil Nadu. In
1970, The Tamil
Nadu Industrial Development Corporation had established its
first cement factory at
Alangulam, which is an industrially backward area in the
Virudhunagar district. The
company is managed by a Board consisting of nine Directors. The
Government of
-
60
Tamil Nadu had nominated an officer from the Indian
Administrative Service to act
as its Chairman and Managing Director. Besides, the nominees
from the public works
department, the finance department, the Tamilnadu Housing Board,
Tamil Nadu
Water Supply & Drainage Board, the Commissioner of Geology
and the Joint
Secretary to Government of the Industries department are also on
the Board. The
Tamil Nadu Cements Corporation Limited has two cement factories.
One is at
Alangulam and the other one is at Ariyalur in the State of Tamil
Nadu. The
Alangulam unit is one among the study units of the present
research work. Table 2.6
presents the details about the two cement factories of the
Tamilnadu Cements
Corporation located at different places.
TABLE 2.6
DETAILS OF THE FACTORIES OF TANCEM LIMITED
Sl.
No.
Plant Location District State Year of
Inception
Present
Production
Capacity in
000 tonnes
1.
Alangulam
Cements
Works
Alangulam* Virudhunagar Tamil
Nadu 1970 400.00
2.
Ariyalur
Cement
Works
Ariyalur** Ariyalur Tamil
Nadu 1979 500.00
Source: Annual Report 2004-05, Cement Manufacturers
Association.
* Located in the study area.
** Not located in the study area.
Alangulam Cement Works is the first state owned cement industry
set up by
the Tamilnadu Industrial Development Corporation (TIDCO). The
Alangulam
-
61
cement works, which is a wet process cement plant, was set up
with an installed
capacity of 0.40 million tonnes of cement per annum at a capital
cost of Rs.6.66
crores in the year 1970. The plant is located at Alangulam which
is in between
Rajapalayam and Sivakasi in the Virudhunagar District in the
Tamil Nadu State.
At present there are 543 workers working in this factory. This
factory is also
paying wages to its employees on the basis of the wages fixed by
the National Wage
Board Settlement. Though it is a public sector state owned
government undertaking,
it employs contract labourers for carrying out different types
and items of work. They
are paid only low wages.
TABLE 2.7
OFFICERS AND WORKERS STRENGTH DURING 1975 TO 2005
Sl.No. Year No. of
Officers
No. of
Workers
Total
1. 1975 46 1370 1416
2. 1980 60 1416 1476
3. 1985 58 1552 1610
4. 1990 137 1439 1576
5. 1995 129 1167 1296
6. 2000 97 917 1014
7. 2005 94 543 637
Source: Records maintained in the Personnel Department of
TANCEM..
-
62
From Table 2.7 it could be understood that the strength of the
labour force had
been reduced gradually during the period 1975 to 2005.
Modernisation and
mechanisation had been the important reason among others for the
declining strength
of the employees in this unit.
Compared to the other two private cement factories, a larger
number of trade
unions has been functioning in the Alangulam cement factory.
During the period of
the research study ten trade unions were functioning in this
factory, namely,
1. Alangulam Socialist workers union.
2. Tamil Nadu Cements National Workers Union (INTUC)
3. All India Forward Block Tholilalar Munnetra Sangam (AIFB)
4. Kamarajar Mavata Cement Quarry workers union.
5. Anna Tholilalar Sangam. (ADMK).
6. SC and ST Employees Association (SC&ST).
7. Labour Progressive Federation (DMK).
8. Tamil Nadu Cements Alai Tholilalar Munnetra Sangam.
9. Arasu Cement and Asbestos Dravida Uliyar Munnetra Sangam.
10. Tamil Nadu Cements Administrative and Technical Staff
Association.
-
63
2.3.5. Labour Welfare Facilities
The following labour welfare facilities had been provided by the
respective
managements of the study units.
1. Provision of Uniforms
All employees including the officers and the administrative
staff were
supplied two sets of terrycotton uniforms every year. The
workmen who were
covered under the work load were given additional set of cotton
uniforms per year.
Each employee except the officers and who were supplied uniforms
were also paid
Rs. 250/- per year towards stitching charges.
2. Provision of Shoes
All the employees including the officers and the administrative
staff were
supplied at the rate of one pair of shoes per year.
3. Payment of Dust Allowance
All the employees, including the officers and the administrative
staff were
supplied a minimum quantity of 500 grams of Jaggery and 500
grams of coconut oil
per month. The workmen working in certain sections such as the
packing section and
-
64
in the kiln selection were given a larger quantity of coconut
oil and jaggery as
disclosed in Table 2.8.
TABLE 2.8
SUPPLY OF COCONUT OIL AND JAGGERY TO WORKERS
Sl. No. Name of the Section Coconut oil Jagger
1. Kiln Section
(Workers for maintenace)
600 gms 600 gms
2. Kiln heat area (coal mill) 800 gms 800 gms
3. Packing House
Packers
Loading mazdoors
Operators
900 gms
800 gms
600 gms
1560 gms
1560 gms
1560 gms
Source: Records maintained in the Personnel Department of Study
Units.
4. Provision of Blue Cloth and Turkey Towel for Workers
All the workmen and technical staff except the administrative
staff and the
officers were supplied with one Turkey Towel every six months
and with one metre
of blue cloth once a year. Workmen in the packaging section were
supplied one
metre of blue cloth every month along with two turkey towels a
year.
5. Provision of Soap
All the workers and technical staff were supplied two cakes of
soaps of 100
grams each every month. But only one cake of toilet soap was
supplied to the officers
and the administrative staff.
-
65
6. Payment of Heavy Vehicle Allowance for Factory Workers and
Quarry
Workers
All the heavy vehicle drivers were paid Rs. 20/- per month,
except the dumper
operators and the PC 650 operators who were paid at the rate of
Rs. 5/- per shift as a
heavy duty allowance.
7. Provision for Heat Allowance
I. 5 per cent of the basic pay is paid as the heat allowance to
the employees working in the following places:
1. Burners platform.
2. Clinkers Shakers.
3. Fuller coolers.
4. Slag drier.
5. Operators.
6. Loco Fireman and attendants and Millers working in the hot
air furnace for coal mills.
II. 2.5 per cent of basic pay is paid by way of heat allowance
to the employees engaged in
1. Greasing
2. Lubricating
3. Kiln rollers Greasing and those working in fluxo pits in the
cement mills.
-
66
8. Provision for Night Shift Allowance
All the workers working in the shifts ending after 6 P.M. but
not beyond
midnight were supplied one cup of tea free of cost as the night
shift allowance. For
workers working in shifts ending beyond midnight, a night shift
allowance of Re.1/-
per such shift was paid. Hence, the night shift allowance
includes both cash
payments and tea supplies.
9. Provision of Conveyance Allowance
Employees covered by the Wage Board were being paid a
conveyance
allowance of Rs. 875/- per month.
The non-wage board employees were paid a conveyance allowance
for
maintaining their vehicles depending upon of vehicles used by
them.
Motor Car Rs. 870/- per month.
Motor Cycle Rs. 360/- per month.
Moped Rs. 280/- per month.
10. Payment of Acting Allowance
If an employee was called upon to act and perform the duties of
a higher post,
he was paid the difference in the amount between the minimum of
his scale of pay
-
67
and the minimum of the higher grade scale of pay. Such an
allowance would be
payable only if he had worked in the higher post for not less
than seven days in a
month.
11. Payment of Periodical Allowances
A sum of Rs.100 per month was paid to all the wage board
employees as a
periodical allowance.
12. Provision for Educational Allowance
All wage board employees, whose children were studying in
schools, colleges,
or technical institutions were paid a sum of Rs. 450 per month
by way of education
allowance irrespective of the number of children studying in the
institutions.
13. Provision for Leave Travel Allowance
A sum of Rs.500 per month was paid by way of leave travel
allowance to all
the cement wage board employees. The non-wage board employees
were eligible to
avail themselves of the leave travel allowance once in four
years as per the State
Government rules.
14. Availability of Leave Facilities
The leave facilities available in the study units for the
employees are presented
below:
-
68
For workers -
Casual Leave - 15 days per year
Medical Leave - 18 days for every completed one year of
service.
Earned Leave - 1/17 days of the total number of working
days.
For Officers and Staff
Casual Leave - 15 days per year.
Medical Leave - 18 days for every completed year of service.
Earned Leave - 1/11 days of the total number of working
days.
Besides, the officers and staff were eligible for 4 days of
National Holidays
and 5 days of festival holidays in a year.
15. Provision of Washing Allowance
All the wage board employees who were supplied with uniforms
were paid
a sum of Rs. 35/- per month by way of a washing allowance.
16. Payment of Graduate Allowance
The administrative staff who had completed their degrees were
eligible for a
sum of Rs. 20/- per month by way of a graduate allowance.
-
69
17. Provision for House Building Advance
The workmen and staff were allowed to avail themselves of house
building
loans from HDFC/LIC/ or the Co-operative Societies and the
interest amounts of
over and above the level of 6 per cent was borne by the employer
as a welfare
measure, that is, as a subsidy given by the management. The
non-wage board
employees were allowed such a concession as per their service
rules.
18. Provident Fund Contribution
E.P.F. (Employees Provident Fund) contribution at the rate of 12
per cent
from the salary (inclusive of Basic Pay, Dearness Allowance and
Additional
Dearness Allowance) was recovered from the salaries of the
workers and an equal
contribution was also made by the concerned managements and
deposited in the
workers provident fund account.
19. Provision for Gratuity
As per the payment of Gratuity Act, 1972, Gratuity was also paid
to the
employees at the rate of 15 days of salary excluding the House
Rent Allowance, for
every completed year of service. As per the Group Gratuity
scheme for the deceased
employees, Gratuity was calculated upto the anticipated date of
retirement based on
the salary drawn at the time of death.
-
70
20. Group Insurance Scheme Facility
All employees in study units had been covered by the group
insurance scheme
of the LIC of India and on the death of an employee an amount of
Rs. 1,50,000 was
paid under the scheme. A nominal subscription of Rs. 30/- per
month was collected
from every employee.
21. Provision of Medical Benefits
A full fledged dispensary with two medical officers was
functioning in each of
the study units. A few beds had been provided and the in
patients were supplied daily
free milk. The medicines bought outside, as prescribed by the
medical officers was
reimbursed as per Government rules and rates. One Ambulance Van
was provided
for each dispensary to facilitate the conveyance of the
patients.
The treatment charges for the treatments taken outside was
reimbursed subject
to a maximum of half months salary in a year for workers and one
month salary for
the administrative staff and for the officers. Medical tie ups
with private hospitals
like the Meenakshi Mission and the Appollo hospitals had also
been established for
special treatment for the following nine diseases.
1. Tuberculosis
2. Leprosy
3. Cancer
-
71
4. Major Operations
5. Major Fractures
6. Major Neurological problems.
7. Uretaric and Renal Stone formations
8. Absestosis, and
9. Mesothelima.
22. Provision of Canteen Facilities
A well equipped canteen was run by the respective managements in
each of
the study units. Food was supplied to the workmen at subsidised
rates. Tea and
Snacks were supplied at their work spots.
23. Provision for Consumption of Free Electricity
All the employees who were residing in the allotted quarters
provided by the
respective managements, were allowed to use electricity free of
cost to the extent of
480 units for a period of six months.
24. Contribution to Tamil Nadu Labour Welfare Board
Regular contributions were made to the Tamil Nadu Labour Welfare
Board
every year. The employees were contributing at the rate of Rs.
3/- per head per year
and the management was also contributing at the rate of Rs. 6/-
per head per year.
-
72
The employees of all the study units were availing themselves of
the various benefits
provided by the Tamil Nadu Labour Welfare Board. For the benefit
of the employees
and their families, a tailoring centre and a child care centre
were also run by the
Tamil Nadu Labour Welfare Board in the respective premises of
the study units.
25. Workers Education Programme
Workers Education classes had been organised by the Central
Board of
Workers. Education Programmes were also conducted by all the
three study units.
26. Employees Thrift and Credit Society
A thrift and credit society was also functioning in each of the
three study
units. The members could invest a sum of Rs. 100/- per month by
way of thrift and
an employee could avail of loans upto Rs. 1,00,000/- which was
recoverable in a
maximum number of 60 instalments.
27. Recreation Club Facilities
A recreation club was also functioning in each of the sample
units of the
study. The members were charged a sum of Re.1/- per head per
month by way of
subscription. Newspapers, periodicals and other magazines were
supplied to the
recreation club. Film shows were screened once a week in the
open air auditorium by
the recreation clubs. Other cultural activities such as sports,
dramas, fancy dress
-
73
competitions, orchestras were also undertaken on all important
days and functions by
the recreation clubs.
28. Provision of Educational Facilities
Matriculation Higher Secondary Schools were run by the
managements of the
Sankar Cement and the TANCEM in their respective premises and an
elementary
school was run by the management of the Madras Cements Limited,
at R.R. Nagar
for the education of the children of the employees of the
respective units.
29. Availability of Safety Equipments
The following safety equipments as required for the employees of
the different
units of study depending up on the nature of their duties, had
also been provided in
the respective units.
30. Provision of Rain Coat
All the mines employees were supplied with one rain coat once in
five years.
In the factory, security guards and canteen workers were also
supplied with rain coats
once in five years.
-
74
31. Provision of Goggles
The drillers in the mines and the packers and the loading
mazdoors in the
factory were supplied with a pair of Goggles every year.
32. Provision of Helmet
The work load employees in the mines were supplied with one
helmet each
once in five years.
33. Provision of Aprons
The drillers and the welders in the mines are supplied with
Aprons. Aprons
were also provided at the kiln section for common use.
34. Provision of Respirator
Drillers were supplied with respirators in the mines.
35. Supply of Leather
The work load employees in the mines were supplied with leather
Skinguards
once in two years.
-
75
36. Provision of Torch Light and Torch Cell
The foremen, the inmates and the electricians working in the
mines were
supplied with torch lights and torch cells. Adequate number of
Torch lights were
been kept in the various sections of the factories for common
use.
37. Welding Goggles and Welding Shields
Adequate number of welding goggles and welding shields had been
provided
to the various sections for the use of welders.
-
76
REFERENCES
1. Encyclopedia Britannica, Vol. 5, William Benton Publishers,
1978, p. 153.
2. Robert G. Blezard, The History of Calcareous Cements, p. 1.,
Leas Chemistry of Cement and Concrete, Fourth Edition, Edited by
Peter C.
Hawlett,
3. M. Guruprasad, Cement Taking Technology in its Stride, Market
Survey, April 2005, p. 31.
4. The Associated Cement Companies Limited, Data on Cement
Industry 1985, Bombay, 1985, p. 1.
5. Kothari Enterprises, Madras, India, Kotharis Industrial
Directory of India, 1992, 38
th Edition, p.4.2.
6. Vikas Singal, Cement and Cement Products, Indian Industry,
2006, p. 78.
7. Ibid.
8. Ibid., p. 79.
9. Cement Industry, ICFAI Journal of Industrial Economics, Vol.
3, No. 2, May 2006, pp. 25-26.
10. Ibid., p.80.
11. India, Published by Ministry of Information, p. 553.
12. CRISL Sector Review, Cement, Executive Summary, CRISL
online, p. 2,
13. Vikas Singal, op.cit., 2006, p. 79-80.