Steel prices shoot through roof: Rs 14k crore worth NHAI projects in TN hit

CHENNAI: The alarming rise of steel prices in the last 45 days, in all likelihood, will hit around Rs 14,410 crore worth National Highway Authority of India (NHAI) projects in the State, in addition to major State government and residential projects.

The TMT steel prices have increased by nearly 25 per cent in last 45 days. This has resulted in increased cost-estimation for construction projects. Highway activities underway have been severely hit by the escalated prices and delayed delivery of TMT steel.

Now, the project targets set by the Ministry of Road Transport & Highways (MORTH) may not be achieved, said Builders Association of India state treasurer S Ramaprabhu. “The construction costs of residential projects have shot up by around 10 per cent,” he added.

NHAI Regional Officer (Tamil Nadu and Puducherry) Pawan Kumar told Express that there has been a shortage in supply of steel at construction sites. “We have a provision to deal with price escalation. This might help compensate for the price hike,” he added.

Some of the NHAI projects, likely to be hit, include the six laning of 33 km Chennai -Tada section of NH-5 at a cost of Rs 295 crore, six-laning of Sriperumbudur -Karaipettai (EPC) at a cost of Rs 777 crore and four- laning of TN/Kerala border - Villukuri section in NH 47.

Where did all the iron ore go? 
A steel industry insider told Express that it is surprising how the price suddenly increased after October 20. “Till October there was abundance of iron and suddenly it has all vanished,” he said. South India Steel Industries chairman and managing director Sunjoy Garg urged the government to immediately stop iron ore exports. “A month ago, every steel mill had excess of iron ore,” he added. 

Now, the price of TMT has gone up from Rs 40,000 to Rs 50,000 for one tonne, and industry insiders say it could further rise by Rs 10,000. While activities at manufacturing industries and infrastructure projects are not in full swing, it is surprising how the steel prices have escalated, wondered a contractor. 

Confederation of Real Estate Developers’ Association of India TN chapter chairman S Sridharan told Express that this price hike may force developers to slow down projects. According to a representation, which has been accessed by Express, the Builders Association of India sent to the Prime Minister, “The TMT steel prices have increased to nearly 25 per cent in just 45 days. The price hike and delayed delivery of the steel severely affect progress of highway projects.”

Amma Cement price hiked to Rs 216 per bag
Chennai: The State Industries Department has increased the price of cement under Amma Cement Supply Scheme from Rs 190 to Rs 216 per bag from Friday. Those who have paid in advance can procure the
cement at old rates. The Tamil Nadu Cement Corporation Limited had earlier submitted a letter stating that private cement manufacturers who supply cement for the scheme had demanded a price hike