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17 Aug 2022, Edition - 2591, Wednesday

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Coimbatore

CREDAI Coimbatore seeks Govt intervention to control steel price

Covai Post Network

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The steep and continuous hike in the steel prices and in prices of raw material is making construction projects unviable and will put a halt to construction activities, says CREDAI Coimbatore. It is requesting the Central Government to immediately intervene in this regard and control prices.

The steel manufacturers have been taking undue advantage of the increase in demand for steel and have been increasing the prices every month.

“The prices of steel have increased unduly from Rs. 40,000 per tonne at the beginning of this year to Rs. 58,000 per tonne in December 2020. This huge increase is due to the cartelisation (a group of industry participants coming together to fix pricing of products and services) by the steel manufacturers. This and the increase in price of other raw materials will push up construction cost and put a huge burden on the home buying common man,” said Surender Vittel, President, CREDAI Coimbatore.

The construction and real estate sector which provide massive employment to over 40 million workers may be forced to shut down if this trend continues, he said. CREDAI is also suitably taking up the issue at the all India level.

High prices of cement and steel have been a serious concern and many industry leaders and ministers have expressed their concern on many public platforms too. Hon’ble Minister of State for Road Transport and Highways, VK Singh warned cement companies against cartelisation at an industry event in September 2020.

Nitin Gadkari, Hon’ble Minister for MSMEs and Road Transport and Highways, had also cautioned steel and cement manufacturers for the irrational upsurge in prices and has raised this issue even with the Prime Minister.

While real estate developers are just now rebooting after the pandemic and when the market is about to revive, it is unfortunate that these high prices will push the sector back into the red.

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