BANGALORE: After water and power problems, soaring cement prices have thrown a spanner in the wheel of infrastructure development . And most developers and people building independent homes are stumped for a solution.
In the past month, this has severely hit house-building budgets as cement constitutes 25% of the overall cost.
From Rs 165 for a 50 kg bag in the first week of September , cement is now being sold in some cases at as high as Rs 285. Even at this price, it's not easily available , according to builders. Some builders allege that cement manufacturers have cartelized and have deliberately cut production in order to raise prices. "This is happening too often and the government should have a regulatory body to curb it," said Dayananda Pai, managing director of Century Builders. J C Sharma, MD of Sobha Developers , says cement prices have increased by 40% in the last one month. "It is sudden and unprecedented ," he said.
Builders are passing on the cost increase to consumers . "But what about individuals who have taken bank loans and invested their savings into building a house? They'll be hit hard. Already many projects have come to a standstill," said Pai.
It is said that the government has referred the issue to the Competition Commission of India.
"The government needs to direct leading players — India Cements, Birla (UltraTech ) cements, ACC, Bharathi Cement and others — to produce to capacity . Then cement will be easily available and the cost too will not double,'' said Sharath Reddy of Sindhya Builders. Cement manufacturers deny there is any cartelization . T S Krishnaswamy , marketing head, TN Region, India Cements, said short supply of power and increased cost of coal have resulted in drop in cement production. Builders, however, don't buy this argument . "Coal price has increased by 5-10 %. How can that lead to an 80% increase in cement price?" asks Pai.
Civil engineer Vasudev Rao said many construction workers, civil engineers and contractors, especially those working on individual units, will be out of jobs if the high cement prices continue.
No comments:
Post a Comment