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5.13. In order to put forth the acts of cartelisation and undue increase in price of cement due to anti-competitive behaviour on the part of the Opposite Parties, the Informant has submitted the following:

(i) The construction and housing sectors are the sole consumers of cement. The growth in the construction sector decreased from 10.10% in 2007-08 to 7.25% in 2008-09, and was further projected at 6.5% for the year 2009-10. Similarly, the growth in real estate sector came down from 8.52% in 2007-08 to 7.77°/o in 2008-09, and was projected at 8.10% in 2009-10 as per the data published by National Account of Statistics, 2009 and press reports for 2009-10. Due to slowdown in the growth of both the construction and real estate sectors, growth in the cement sector also witnessed a downward trend from 9.76% in 2006-07 to 8.13% in 2007-08, and a further decline to 7.90% in 2008-09. As a result of this slowdown, utilisation of installed capacity also came down to 85.55% in 2008-09 from 94% in 2006-08. The growth in cement sector increased to 11.68% in the year 2009-10, due to revival in the housing segment of real estate sector from April 2009 onwards. However, despite the growth in the production of cement, the utilisation of installed capacity was reduced to 82.46% in 2009-10.

(vi) The cement manufacturers have been continuously increasing the production of Portland Pozzolana Cement (PPC) and reaping benefits available to them by using 'fly-ash' in production, which meant that the quantity of production of cement increased manifold without any increase in the cost of production or input costs. 'Fly-ash' is provided to the cement manufactures by thermal power plants, which are primarily owned or controlled by the government or semi-government undertakings, at zero cost. The cement manufactures use around 15- 20% fly-ash as raw material to produce cement, amounting to direct reduction of 15-20% in the cost of raw material used for production of cement. However, the cement manufacturers have not passed on the price benefits being enjoyed by them to the construction and real estate sectors and consumers thereof.

(vii) Notwithstanding the slowdown in the real estate and construction sector, the installed capacity of the cement industry, which was 219.00 million tonnes as on 31.03.2009 increased to 246 million tonnes by 31.03.2010 In spite of the increased installed capacities, the capacity utilisation which was 88% in 2008-09, came down to 82.46% in March, 2010.

(viii) The cement manufacturers, during April-June 2009, increased their respective installed capacity from 219.17 million tonnes (as on 31.03.2009) to 229.20 million tonnes (by 30.06.2009) and produced 50.24 million tonnes of cement. Prior to the onset of monsoon season, the demand for cement increases in the first quarter of April-June of any financial year. Due to the higher consumption in this quarter of the year, the cement manufacturers increase the production of cement.