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

I Plan
II Plan
III Plan
IV Plan
V Plan
VI Plan
VII Plan
Annual Plan
Annual Plan
VIII Plan

IX Plan

X Plan

Source:
Note :

Year

Capacity

Actual
Production

1955-56
5.02
4.60
1960-61
9.30
7.97
1965-66
12.00
10.97
1973-74
19.76
14.66
1978-79
22.58
19.42
1984-85
42.00
30.13
1989-90
61.55
45.41
1990-91
64.36
48.90
1991-92
65.56
53.61
1992-93
70.19
54.08
1993-94
76.96
57.96
1994-95
83.79
62.35
1995-96
95.76
69.63
1996-97
105.25
76.22
1997-98
110.51
83.16
1998-99
118.97
87.91
1999-00
118.16
100.29
2000-01
132.47
100.11
2001-02
145.99
106.90
2002-03
151.17
116.35
2003-04
157.48
123.50
2004-05
164.69
133.57
CMA Annual Report, 2004-2005.
Mini Cement Plants are also included.

Percentage
of Capacity
Utilisation

Average
Annual
Growth
Rate

91.63
85.69
91.42
74.19
86.00
71.74
73.78
75.98
81.77
77.05
75.31
74.41
72.71
72.42
75.25
73.89
84.88
75.57
73.49
76.97
78.42
81.10

-85.26
39.78
64.67
14.27
86.00
46.55
4.57
1.86
7.06
9.65
8.87
14.29
9.91
4.98
7.66
0.68
12.11
10.21
3.55
4.17
4.14

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)

Clinker 95 per cent +

Ingredients

Application

Clinker 70 per cent

+
Gypsum 5 per cent
Flayash upto 25 per
cent
+ Gypsum 5 per cent
Best suited for all
High strength cement
kinds of Masonary suitable for mass
work and for small concrete works like
concrete works
dams and large
foundations.

Portland Blast Furnace

Slag Cement (PBFSC)
Clinker 30 to 75 per cent
Blast furnace slag upto
25 to 65 per cent +
gypsum 5 per cent
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

0.90

(Million tonnes)
Annual
Total
Growth
Rate
-2.41

13.25

0.94

4.44

2.65

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

Year

Cement

1995-96

1.51

1996-97

1.71

1997-98

Annual
Growth
Rate
--

Source: CMA Annual Report 2004-05.

Clinker

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

1.

Ramasamy
Raja Nagar

R.S. Raja
Nagar*

2.

Jayanthipuram Jaggayyapet**

State

Year of
Inception

Present
Productive
Capacity in
000 tonnes

Tamil Nadu

1961

750.00

Andhra
Pradesh

1986

1600.00

Alathiyur
Alathiyur**
Tamil Nadu
1997
Works I
Alathiyur
Alathiyur**
Tamil Nadu
2001
Works - II
Source: Annual Report 2004-05, Cement Manufacturers Association.
* Located in the study area.
** Not located in the study area.
3.

1360.00
1 760.00

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.

1.
2.

Plant

Sankar
Nagar
Sankar
Durg

3.

Chilamkur
Works

4.

Dalavoi

Location

State

Tamil
Nadu
Tamil
Sankaridurg**
Nadu
Talayuth*

Year of
Present
Inception/ Production
Acquisition Capacity
in 000
tonnes

Acquired
from

1946

1550.00

--

1963

720.00

--

Chilamkur**

Andhra
Pradesh

1990

1300.00

Coromandal
Fertilizers
Ltd.

Trichi**

Tamil
Nadu

1997

1300.00

--

Acquired
5.
Tandur**
1998
1120.00
through the
subsidiary
Cement
Andhra
Corporation
6.
Yerragunta Yerragunta**
1998
520.00
Pradesh
of India
(CCI)
Rasi
Rasi
Andhra
7.
Wadapally**
1998
2300.00
Cement
Cement
Pradesh
Ltd.
Source: Annual Report 2004-05, Cement Manufacturers Association (CMA).
* Located in the study area.
** Not located in the study area.
Visaka
Cement

Andhra
Pradesh

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

Alangulam
Tamil
1.
Cements
Alangulam* Virudhunagar
1970
Nadu
Works
Ariyalur
Tamil
2.
Cement
Ariyalur**
Ariyalur
1979
Nadu
Works
Source: Annual Report 2004-05, Cement Manufacturers Association.
* Located in the study area.
** Not located in the study area.

400.00

500.00

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.
1.
2.
3.

Name of the Section

Kiln Section
(Workers for maintenace)
Kiln heat area (coal mill)
Packing House

Coconut oil
600 gms

Jagger
600 gms

800 gms

800 gms

Packers
900 gms
1560 gms
Loading mazdoors
800 gms
1560 gms
Operators
600 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.

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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.

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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.

10.

Motor Car

Rs. 870/- per month.

Motor Cycle

Rs. 360/- per month.

Moped

Rs. 280/- per month.

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

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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:

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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.

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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.

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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

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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.

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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.

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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.

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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, 38th 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.