As per the memo, the price of Cement (50 kg) in the last two years from January 2019 to December 2020 increased from Rs 360 to Rs 430, whereas Steel price (per tonne) increased from Rs 40,000 to Rs 58,000 from January 2019 to December 2020. (Representational)
CREDAI Pune Metro- the consortium of realtors of the region has sought government intervention in what they say in the cartelization by cement and steel manufacturers. In this regard, the body has submitted a memorandum to Dr Rajesh Deshmukh, the district collector seeking his intervention.
A press statement issued by the body said it has appealed to the government authorities for its intervention. “Construction raw materials including steel and cement for the revival and survival of Real Estate, which is facing challenging times while working to gear up construction activity across the state and also in the interest of the homebuyers,” the release read.
Many developers, they claimed would be forced to halt their construction work if the prices of the key raw material continues to rise.” With the thin margins, many developers may be forced to halt construction work, thereby impacting the delivery of the projects, leading to penalty under RERA and other authorities. Due to this, the homebuyers too will have to bear the consequences,’ the memo stated.
As per the memo, the price of Cement (50 kg) in the last two years from January 2019 to December 2020 increased from Rs 360 to Rs 430, whereas Steel price (per tonne) increased from Rs 40,000 to Rs 58,000 from January 2019 to December 2020.
Speaking on the issue, Suhas Merchant, President, CREDAI-Pune Metro said, “The increase in the prices of construction raw materials including steel and cement is highly unethical and amounts to unfair and restrictive trade practices. We appeal the government at the State and Central level to take this issue up as it is essential to control this price rise for the construction to be started in full swing and get the economy of the country back on its growth path.”