The Builders Association of India (BAI), an apex representative body of civil engineering construction companies, demanded an immediate rollback of the iron and steel price hikes which they claimed has increased by over 60% in recent times “making all the ongoing projects unviable”.
At a meeting held here on Wednesday, the members threatened to halt all works unless the government intervenes to fix the basic minimum price of iron and steel on all existing projects as such “unprecedented hike” in input costs add additional financial burden to the existing contract works.
“Iron and steel, cement are the most important inputs for any construction project but the price has gone up. increased from ₹30,000 per tonne six months ago to about ₹48,000 - ₹50,000 per tonne. Steel manufacturers have formed a cartel to effect to increase prices in the last few months,” national vice president S.N Reddy, and Telangana State chairman B. Sugunakar Rao said. at a press conference after the meeting.
Main reason behind the “unwarranted” price hike was because of the increase in international demand as China ordered shutting down of its steel plants on account of air pollution and this led to Indian steel firms to step up exports, “creating scarcity in the local market and thus high prices.”
Big and small contractors involved in various works like roads, irrigation, government housing schemes for poor and so on have been hit hard, they claimed. “Worst impact will be on the two-bedroom scheme taken up by some of our members at a ₹800 per SFT as against a cost of ₹1100 per SFT just to support the TS government in the mission to provide housing for all,” said Mr. Reddy.
“We operate on narrow margins. Such steep price escalations disrupt the project costs and affects employment too as construction industry provides more jobs than any other sector apart from agriculture,” said Mr. Rao. The Association wanted prompt payments from the Government and appealed for setting up of a panel to regulate the price of steel.
