Confederation of Real Estate Developers’ Associations of India (CREDAI) has urged the State government to take necessary measures to bring down the prices of cement and sand in the State.
Addressing a press conference here on Thursday, CREDAI State president A. Siva Reddy said the construction industry was facing hardships with sand and cement price increase continuing for several months now.
The steep rise in prices has impacted construction industry.
The price of cement has gone up to Rs.400 in a most unscientific increase.
While a bag of cement costs Rs. 275 to Rs.300 in Telangana State, the prices were abnormally increased in Andhra Pradesh, he pointed out.
Despite the State government taking control of sand reaches, the woes of the construction industry had multiplied.
Sand used to cost Rs. 80 per cubic metre a year ago. The government fixed it at Rs. 660 per cubic metre.
Six cubic metre sand used to cost Rs. 2,500 to Rs. 3000. Now, it costs not less than Rs. 6,000, including a minimum of Rs. 2100 transportation costs for delivery at construction sites, he said.
The government was also urged to collect seigniorage from the builders while sanctioning building plans as against existing practice of collecting at the time of sand delivery. The government could collect Rs. 2 per sq. feet as seigniorage from the builders. It would augment the revenues at least four times, he felt.
The CREDAI asked the Municipal Administration and Urban Development officials to consider the applications submitted under Building Penalisation Scheme (BPS) in 2007.
For various reasons many of the applications were not cleared though prescribed fee was paid, he said adding memoranda were submitted to MAUD, CS and Mines and Geology officials for necessary action.
CREDAI Vijayawada chapter leaders R.V. Swamy and others were present.
‘Sand costs not less than Rs. 6,000 now, including a minimum of Rs. 2,100 for transportation and for delivery at construction sites’
