Cement prices going through the roof, say builders

Second largest sector in India affected by rise in cost of construction raw materials, says association; Minister promises all possible help

Builders have expressed concern over the rising prices of raw materials and demanded that a regulatory body be set up to monitor  cement prices.

Addressing the gathering during the Builders Day celebrations here recently, B Seenaiah, president of the Builders Association of India (BAI), and R Radhakrishnan, former president and trustee of BAI, said that the construction sector was the second largest after agriculture, but lacked recognition from the government. Delay in getting clearances and the rise in prices of construction raw materials had affected the builders, said Seenaiah.

He said that clearances for projects took nearly 18 months during which the agreement to construct the building got over. “This results in cost over-runs,” he added. He said that the government should lay down a policy so that builders did not suffer.

The meeting was also attended by Union Shipping Minister G K Vasan who assured the builders that the government would  look into the issues plaguing the construction sector.

He also assured the sector of all possible help to address the builders’ grievances. Interestingly, the price rise index has jumped from 100 to 231 points in the last 12 years and 42 points in two years from 2011-13.

Radhakrishnan said that the Union government had earmarked `86 lakh crore for the construction sector under the 12th five-year plan. “This year, it should have spent `11 lakh crore. Surprisingly, only `3 lakh crore has been spent,” he said.

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