VISAKHAPATNAM: Following the unprecedented spike in cost of construction material, CREDAI-AP and other bodies have announced a ‘work holiday’ at all construction sites on April 9.Associations including CREDAI-AP, NAREDCO, AP Chamber of Commerce, Builders Association of India, Licensed Technical Persons, Architects Association and SABCA jointly gave a call for the protest.
Elaborating the reason behind the protest, they said besides cement, steel, sand, electrical items, the prices of nearly 241 products used in the construction sector have gone through the roof. The escalation ranged from 40 to 50 per cent.
Speaking to TNIE, AP Chamber of Commerce state president Pydah Krishna Prasad said they have extended support to the strike call given by CREDAI and other construction associations in the State. Similar one-day strikes have bee observed in Telangana and Maharashtra recently. Prasad said the objective behind the strike is to highlight the issues faced by the construction sector.
Prasad said the decision is certainly a setback for the ongoing projects as they cannot absorb the increase in construction cost or pass the escalated prices to customers after signing agreements.Explaining that there are nearly 10,000 major and medium builders across the State and over three lakh construction workers in 13 districts, the president said the surge in cost of construction materials will lead to rise in price of apartments and villas. CREDAI Vizag chairman B Srinivasa Rao told TNIE that they were observing a one-day strike on Saturday demanding a rollback in prices.
While any builder can absorb price difference of 10 to 15 per cent, he added now the hike was almost 40 to 50 per cent. “CREDAI-Vizag alone has 800 members and a large number of builders in other associations are unregistered. In Visakhapatnam city’s Gajuwaka, Maddilapalem, and Madhurawada zones, there are nearly 40,000 to 50,000 construction workers. The builders are now in a fix as they can neither stop projects nor go ahead with the construction of these projects, he said.
Stating that prices of all construction materials have risen by almost two times, Rao said the cost of one tonne steel has increased to Rs 70,000 from Rs 35,000. Similarly, cement prices have gone up by Rs 150 a bag. PVC, electrical, and other items are also witnessing a spike of 40 to 50 per cent and energy bills are set to go up by 30 per cent.The government should control prices to help the industry, Rao said, adding that the Competition Commission of India (CCI) should intervene. The objective of the CCI is to provide a ‘level playing field’.
Buying house out of reach
CREDAI-Vizag honorary secretary Ashok Kumar said the cost of a buyer’s dream house has gone up like never before. He added that this will have a highly negative impact on the sentiment of the buyer and adversely affect construction industry.