Builders see red over rise in rates of construction material

Ludhiana: An urgent meeting of the executive body of Ludhiana Builders Association (LBA) was called on Thursday. The agenda of meeting was to discuss the problem being faced by the builders due to spike in the rates of construction material. According to the businessmen the rates of white sand, steel, cement and all other material used in construction have increased to such an extent that the cost of construction has risen manifold.
Giving more information, president of LBA Ajit Singh said, “In a span of few months, the rate of white sand that was Rs.15 per cubic foot (CFT) has increased to Rs. 40 per CFT. The rate of crusher, which was about Rs. 29 per CFT has shot up to to Rs. 40 per CFT, similarly rate of coarse sand which was Rs. 36 per CFT has increased to Rs.55 per CFT. The non implementation of the mining policy of Punjab government is one of the prime reasons for the increase in rates because the mining department is not allowing anyone to do the needful because of which, all construction activities have been badly impacted in Punjab and builders are forced to arrange these materials from neighbouring states at a much higher price. Moreover, this has also led to black marketing of the raw material in the region and that is why rates of these have gone up by double in a span of just few weeks.”
According to SS Mavi, patron of the association, “Besides the rate of white sand, crusher and coarse sand, the rate of steel has increased to Rs 72,000 per tonne from Rs. 48,000 per tonne and cement has also increased from Rs. 275 to Rs. 350 per bag. Cost of bricks, too, has registered an increase and all these factors combined have dealt a huge blow to the builders already are working on very thin profits. Overall construction cost has gone up by almost 50% as compared to earlier levels. On one hand the government is giving subsidies on housing loans, on the other the budget of those trying to build their house has shot up by such huge percentage that it is becoming impossible for them to fulfil their dream.”
The businessmen have demanded that the state government should immediately implement the mining policy and start legal mining and make raw construction material available at a fair price. The LBA members also demanded formation of regulatory committee for deciding of basic rates of construction materials for a particular time period.