Union Minister for Road Transport and Highways Nitin Gadkari has assured the Builders’ Association of India (BAI) that he would look into their demand for a regulatory authority for the cement and steel sectors. He said the Central government is serious about curbing instances of cartelisation.
Expressing concern, Mr. Gadkari said he felt there is cartelisation in these industries. The minister made the comments while virtually interacting with the members and office-bearers of the BAI on Saturday.
“We have taken serious note of it [cartelisation] and I have discussed this with the Prime Minister. Most steel companies own iron ore mines and with no increase in labour and power charges, why should there be an increase in steel prices? It is very difficult to understand,” the minister said.
“Similarly, the cement industry is taking advantage and exploiting the situation for profit. This is not in the interest of the nation. We are aiming to implement infrastructure projects worth ₹111 lakh crore in the next five years and the Prime Minister has dreamt of a $5 trillion economy. With cartelisation in cement and steel industries, it will be very difficult to achieve,” he added.
Mr. Gadkari said forming a regulatory authority was a good idea and the ultimate decision would be taken by the Finance Ministry and the Prime Minister’s Office. “But I can assure you that this has been taken very seriously and we will resolve it at the earliest,” he said.
The minister also resolved to address many of BAI’s demands and issues raised by the infrastructure sector. During the meeting, BAI and its office-bearers had put forward the issues faced by contractors and industrialists from the infrastructure, construction and real estate sectors. “Baburao Shkkarwar, vice-president of BAI western region, and Mu Mohan, president, BAI, and other office-bearers, raised the issues effectively and the minister replied to them positively,” BAI said in a statement.
The association requested for a mechanism for early settlement of bills against government contracts, and streamlining GST implementation. BAI has also demanded giving industry status to the infrastructure sector. Mr. Mohan said the industry status would help the sector solve major taxation and duty-related issues.
BAI said, “Mr. Gadkari assured us that he will look into the demands. He sought cooperation and a proactive approach by the industry players in helping the government achieve its goals in the infrastructure sector.”