Builders Fear Rise in Cement Prices if AP Goes TS Way

VIJAYAWADA:In case the AP State government retaliates by imposing entry tax on vehicles coming from Telangana, as the latter had done on AP vehicles from April 1, it will have a telling impact on cement prices, as the bulk of cement used in Krishna, Guntur, twin Godavari and North Andhra districts is brought from cement factories in Telangana.

Cement prices would increase putting more pressure on builders, particularly in urban areas. Builders and realtors have already sent an SOS to the State government in view of escalating cost of building and construction material.

“Prices of the cement have been abnormally increased from Rs 220 per bag to Rs 350 and if the AP government decides to impose entry tax, cement suppliers will further increase the price,” Ch Sudhakar, CREDAI Vijayawada president said. The increase in cement prices will set a chain reaction and ultimately affect the end user, say builders and realtors. “It is a fact that by end of the day, it is the customer, who has to face the burden of any escalation in the cost.

It is not just cement, but there are other raw materials like steel, tiles and PVC, domestic fixtures, that need to pass through Telangana and there will be a definite increase in cost. The quantum of increase is hard to tell at this point,” another builder said.

Though realtors hope the issue will be amicably resolved, they say it is inevitable that one day or the other, AP too will have to impose entry tax. If it happens, the cost of construction material being transported from Telangana is bound to increase.

What will the AP government, which is on the verge of taking up a massive construction activity in the coming months is going to decide, is a million dollar question.