New Delhi : The government is mulling action against cement companies for cartelisation, Minister of Road Transport, Highways, Shipping and Waterways Nitin Gadkari said on Friday.
Gadkari said the construction cost was going up because of increase in price of raw materials such as cement and steel.
He said it was difficult to understand the increase in cement prices when royalty, electric and labour costs are unchanged…some industry have a long habit of making cartel. And I am not hesitating to make this allegation on them because I know the evidence, Gadkari said.
The companies have a right to make reasonable profit, but if they start exploiting the situation then the welfare government will have to step in to control such elements, he said.
With infrastructure sector witnessing an upswing in activities in recent years, Gadkari said the emphasis of new technologies should be on reducing the cost of projects without compromising quality.
Gadkari observed that there was no increase in the royalty, labour charges, yet the costs spiralled.
“Steel industry…rates there have also increased. Now the cost of sand is equal to the cost of cement,” he said.
If the people are taking disadvantage of all the construction that is taking place in the country by making a cartel then it is time for the government to take stern action against them, he said.