‘Cartelisation by steel, cement industries has increased prices without justification’

Mysore/Mysuru: A joint forum comprising Builders Association of India (BAI), Confederation of Real Estate Developers Association of India (CREDAI), National Real Estate Development Council (NAREDCO), Association of Consulting Civil Engineers-India (ACCE-I), representing various bodies of the construction industry, has announced a day-long strike tomorrow (Feb. 12) to protest unreasonable and frequent increase in prices of steel and cement.

The construction body demanded that there should be fair pricing of these two products and has also called for a regulatory authority to control the increasing prices.

Addressing a press conference at Pathrakartara Bhavan in city yesterday, State Chairman BAI Karnataka U.M. Gurushanthappa said that it will be a nationwide peaceful protest and in Mysuru, a memorandum will be submitted to the Deputy Commissioner to draw the attention of the Government. 

“The Centre and State Governments have come up with schemes to provide housing for all and various infrastructure projects. All these are now in danger of not getting implemented because of undue increase in steel and cement prices,” said Gurushanthappa.

He pointed out that the price of steel has shot up from Rs. 35,000 per tonne in the beginning of 2019 to Rs. 45,000 to Rs. 75,000 per tonne. Similarly, the price of a bag of cement has increased to Rs. 460 from Rs. 280, resulting increase in construction costs.

Cartelisation: “With a continuous and sudden upsurge due to cartelisation in the prices of steel, cement and other raw materials, real estate developers are experiencing an inevitable increase in construction cost and are faced with a situation that will create a delay in delivery, stalling of projects in some cases, thereby impacting the homebuyers at large. Builders are facing an uphill task of further convincing the customers of this additional burden,” he said.

“Cartelisation by the steel and cement industries have formed an unholy alliance to increase prices without justification. Despite several representations made by construction industry Associations to Centre and State governments, no action has been taken so far. Hence in the interest of the general public and the construction industry, we are organising a one-day strike/stop work, on Feb. 12,” he added. 

Scarce M-sand: “Real estate plays an important role in strengthening the economy. But of late, developmental projects are in the risk of coming to a grinding halt. Builders and contractors, who are working with a thin margin, are unable to absorb the increase in costs and are forced to pass it to the customers,” Chairman of NAREDCO Mysuru N. Divyesh said. 

He added that these days even M-sand is not available. “The Government must intervene and give us M-sand so that construction does not stop,” he added. 

Chairman of BAI Mysuru Centre M. Rathnaraj, Secretary of MUDA Contractors’ Association C.D. Krishna, Secretary of CREDAI Mysuru D. Srihari, President of ACCE(I) Mysuru S. Prakash were present during   the press conference.