VIJAYAWADA: The Joint Action Committee (JAC), comprising various real estate developers like BAI, CREDAI, NAREDCO, SABCA and workers association, has demanded that the State and Central governments constitute a Regulatory Authority for restricting cement and steel prices to protect the interests of the construction sector.
As part of their agitation, the JAC has decided to stage a demonstration from 10 am to 12 pm near Benz Circle on Friday. Builders Association of India (BAI) State chairman, on Thursday, said that despite lack of demand in the market, the cement manufacturers formed a syndicate and created artificial shortages for the commodity which leads in raising of cement and steel prices by 40 per cent in the last six months. With this, the construction sector, the second largest sector in the country, will face a huge loss.
Already, the construction sector has been reeling under crisis due to demonetisation of high denomination currency notes, Goods Services Tax (GST), Real Estate Regulatory Authority (RERA), shortage of sand, skilled labour and the Covid-19 pandemic. As a result, millions of workers across the country have lost their jobs, he added. Confederation of Real Estate Developers Association of India (CREDAI) Vijayawada chapter chairman RV Swamy said that the construction sector is the second largest employer in the country after agriculture.
With steep rise in cement and steel prices, the construction sector went into severe crisis. Even though the prices of raw materials remain unchanged, the manufacturers formed a syndicate and increased the prices of steel and cement. “We are organising a demonstration on Friday to bring our problems to the attention of the government and companies”, Swamy added.
National Real Estate Development Council (NAREDCO) State Coordinator GSS Prasad said cement and steel prices were out of control as some of the manufacturing companies are controlled by private individuals. He urged the Central and State governments to intervene and support the construction sector.