The Confederation of Real Estate Developers’ Associations of India (CREDAI) is planning to import cement from abroad, China in particular, to overcome the problems facing builders like spiralling rise in prices of cement and the Telangana government’s decision to impose road cess from trucks from Andhra Pradesh.
With trucks owners deciding to suspend their operations protesting the TS government’s move, there have been reports of shortage of cement. “At present, the cost of premium cement bag is Rs. 365 in the retail market, and it is set to increase steeply, as transportation costs will shoot up with the TS government’s decision to impose road tax on trucks from AP,” said CREDAI Vijayawada chapter president C. Sudhakar. This will eventually impact the input cost of the project. To avoid this, there are plans to import cement from China, he added.
“In all probability, the cost of a cement bag imported from China will be around Rs. 300. In addition to the availability of quality cement, the price pattern will help in reducing the input cost considerably. It will definitely impact the local industries in Telangana,” Mr. Sudhakar said.
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The industry is already reeling under pressure, with manufacturing units in Telangana increasing cement prices.
“The matter has already been taken up with the Chief Minister and Chief Secretary I.Y.R. Krishna Rao. The Chief Secretary has promised to convene a meeting with manufacturers and builders shortly,” he added.
At present, the cost of premium cement bag is Rs. 365 in the retail market, and it is set to increase steeply, as transportation costs will shoot up with the TS government’s decision to impose road tax on trucks from AP.
C. Sudhakar
CREDAI Vijayawada chapter president