The spiralling prices of steel is affecting construction activities, especially ongoing projects, according to builders here.
Builders Association of India Coimbatore chapter president Paneerselvam says that steel prices are up by ₹ 10,000 a tonne in the last three weeks. If construction of an independent house consumes eight tonnes steel, the customer will now face escalation of ₹ 80,000 in the building cost. Similarly, prices of all PVC items are up by 10% or more. Builders who are into government projects will be the worst affected as they had committed a price when the works commenced, he says.
According to Rajesh B. Lund, former head of Confederation of Real Estate Developers' Associations of India, Coimbatore chapter, the prices of labour, steel, and cement have shot up. “We cannot afford such steep hike in raw material prices, especially for ongoing projects. Customers who have already booked units at these projects will not agree for 40% increase in prices,” he says.
Both said that construction activities have revived after lockdown relaxations and are doing well now. However, the high input costs are affecting builders and property developers.
Meanwhile, on the steep increase in prices of raw materials, including steel, for the engineering sector, Coimbatore MP P.R. Natarajan has demanded action from Central and State governments to control prices. “The Central government should explain the reasons for the hike in prices,” he said.
About 400 small-scale foundries in Coimbatore are on indefinite strike, affecting thousands of workers. They had to take the decision only because continuing operations was unviable. The government should form a committee to study the reasons for price increase and come out with a clear export-import policy for raw materials, he said.
