Bangalore: The Governing Body of CREDAI – Karnataka met in Bangalore and one of the key matters on the agenda was the arbitrary hike in cement prices announced by the Cement Manufacturers Association (CMA). The increase has taken the price of cement from Rs 255 to Rs 315 per bag, an increase of almost 25%. “CREDAI-India will take a petition to the Central Government of India requesting that the price of cement be brought down in a week’s time, failing which – construction across all South-Indian states namely TAMIL NADU , KERELA , ANDHRA PRADHESH And KARANTAKA will be forced to be halted as prices of all apartments will have to be increased by us” said Mr. R Nagaraj, President, CREDAI Karnataka.
At the same time, four organizations – the Builder’s Association of India, Construction Federation of India, National Highways Authority of India and CREDAI will also take a presentation to the Competition Commission of India (CCI) protesting the price rise.
As a result, the cost of construction is poised to escalate pan-India, which means that the end consumer is going to be burdened with a rise in apartment costs. This price increase, CREDAI officials ascertain, has been grossly timed wrong, especially now, with the onset of the monsoons and when prices are generously supposed to be on the downtick due to the slowing of construction pace.
CREDAI acknowledges that the change in economy may result in a small change to the price of cement trading, however asserts that the input cost to the cement manufacturers does not warrant the current level of hike. Coupled with the hike in cement, is a steep increase in steel prices too. Prices have gone up from Rs 47,000 to Rs 52,000 per metric tonne.
It is the common man who will be largely burdened by this increase in prices. A majority of infrastructural projects today are done on the basis of a PPP (public-private partnership). This sharp increase in prices will in turn pass on the burden of project completion to the people, in the form of higher taxation.
About CREDAI Karnataka:
CREDAI Karnataka is a part of CREDAI National which is established in 1999 the Confederation of Real Estate Developers’ Associations of India, today consists of 23 States which has 133 City level Associations that have over 9000 Developers under a single platform. As the apex body for private sector developers, CREDAI has worked hard to make the industry more organised and progressive by networking closely with Government representatives, policy makers & investors, consumers & real estate professional.
