Builders Association of India (BAI), the apex body of the construction industry with over 10,000 members, has reiterated its demand for the appointment of Cement Regulatory Authority to prevent cartelisation in the sector.
It also demanded measures to improve the output of the construction workers and introduction of an Unified Standard Contract Document for hassle-free execution of contracts.
Sachin Chandra, the new President of BAI, said that his priority would be to reach out to the Centre to address important issues impacting the industry.
“The Union Government should immediately appoint a Cement Regulatory Authority to rein in the unabated increases of cement price, without the same being warranted by market forces. Such abnormal increase in cement prices is causing huge losses to the real estate developers, the government and even private contractors,” Mr. Chandra said.
“The MRTP Commission, Competition Commission of India and National Company Law Appellate Tribunal had repeatedly found clear evidence against cement manufacturers indulging in cartel-type of arrangements to create artificial shortage of cement to jack-up prices with the purpose of ‘profiteering. The regulator will help in curbing such practices,” he added.
Pointing out that the output of construction labourers in India is abysmally low compared to other countries, he said importance must be given to improve the quality of the work done by the construction workers.
“Though BAI has taken steps in this direction, it needs to be taken to the next level. The BAI is willing to partner with the government to bring more trained workforce into the sector,” he said.
Mr. Chandra said the age-old Contract Act enacted in 1882 was outdated and creates lots of litigations at various courts of law. “To address this the government must bring out a ‘Unified Standard Contract Document’ which could be adopted by all Works Authorities to facilitate smoother and hassle free execution of contracts.”
These reforms will help the industry to function in a transparent manner, he added.