CHENNAI: The State unit of the Builders' Association of India has expressed concern at the increasing prices of cement.

K. Ramanujam and L. Moorthi, chiefs of the State unit and southern centre, told presspersons on Monday that contrary to the expectation that the prices would go down following the State Government's decision early this month to grant sales tax concessions, the prices were shooting up. They went up by Rs. 5-Rs. 15 a bag. "As the end users have not received the tax reduction benefit, the Government should ... take immediate steps to solve this important issue."

The construction activity had come to a standstill since October. It was expected to resume now, but the price increase had come as a "rude shock," they said.

Pointing to the boom in the sectors of information technology and IT- enabled services, they said the builders had to meet their obligations to the sectors. "It has become difficult to carry on our activity, given the present conditions," Mr. Ramanujam said. Shortage of sand and bricks had already hit the activity.

He said it was inexplicable why the prices should go up when the cement industry was doing well with the off-take being good.

Mr. Moorthi said: "We want the Government to act ... fast." If it did not do it now, a situation might arise in which it would express its inability once the election schedule is announced."

He and J.R. Sethuramalingam, former chairman of the southern centre, said unless steps were taken urgently, the activity would have to come to a halt.

Asked whether the issue was taken up with the Government, D. Thukkaram, chairman of the association's taxation committee, said the issue figured at at a meeting they had with officials of the Commercial Taxes Department on Monday.

Mr. Ramanujam said two fax messages had been sent to the Chief Minister.

It was the builders who came to the rescue of the administration, carrying out repairs after the recent floods.

Mr. Moorthi said the problem of the price increase was confined to Tamil Nadu.

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