HYDERABAD: Construction activity in Hyderabad, which has become costlier since COVID-19, is set to cost more as cement prices are likely to go up by Rs 60 per bag due to hike in input costs of coal. This has come as a shocker to both buyers and builders, who had already shelled out a fortune on properties the past year.
According to realtors, the hike in cement prices indicates that Rs 30 would have to be spent per sq.ft area, considering the fact that construction activity for each sq.ft requires at least half a bag of cement for any kind of residential property.
As a result, there will be an additional burden of around Rs 30,000 for constructing 1,000 sq.ft and the cost will go up as the built up area increases. A few months ago, the cost of construction activity had increased by Rs 500 per sq.ft.
Speaking to The New Indian Express, CREDAI-Telangana chairman, Ramchandra Reddy said that the shortage of coal would lead to increase in prices of many raw materials. "We are expecting that the steel prices would also go up. The impact would be more on construction as it requires 4 kg to 5 kg of steel per sq.ft," he said.
"Usually, cement prices are in the range of Rs 240 to Rs 250 per bag during monsoon as construction activity would remain sluggish. But this time, the prices of cement have increased and have posed a challenge to construction activities," Reddy said.
There are around 25 to 30 cement companies, including Bharathi Cement, Ultratech Cement, Nagarjuna Cement and Ramco Cement, which supply their products to Telangana. The prices of cement in Hyderabad is around Rs 300 to Rs 400, depending on the grade of the product and the company.
Rise in cost of imported coal
Earlier, the South India Cement Manufacturers Association (SICMA) had said that cement production was hit due to rise in the cost of imported coal and that this could increase the production cost of a bag of cement by a minimum of Rs 60