Hyderabad: To fight the rising price of cement, CREDAI has also teamed up with the Andhra Pradesh Real Estate Developers’ Association (APREDA), Telangana Real Estate Developers’ Association (TREDA), Builders Association of India (BAI) and the Telangana Builders Federation to form the JAC.
“The present situation and political scenario and the upcoming monsoon season does not warrant the need for such a hike and requires a focus on capacity utilisation. Governments of the two states should take strict action against the cement manufacturers for cartelization to increase the prices,” said members of the joint action committee.
C. Shekar Reddy, national president, CREDAI and chairman of the JAC, said, “The housing sector accounts for 64 per cent of the total cement demand in India. We cannot be cornered with a steep hike of approximately Rs 100/ bag (50 kg) without any changes in the input cost, demand or government taxes.”
The joint action committee is represented by almost 2,000 developers and 1,000 small, medium and mega contractors from Telangana and AP. Mr P. Dasarath Reddy, president, APREDA/TREDA and co-convener of the JAC, added, “The developers and builders in AP and Telangana operate on very low margins and had been facing a lot of problems due to political uncertainty and low economic growth over the last few years. The hike in cement prices will have an impact of about '100 per square feet which will have a negative multiplier effect on the economy.”
With steel prices going up from Rs 47,000 to Rs 52,000 per ton, labour cost increasing by 20 per cent and building products like electrical, wood, paint and sanitary ware by 5 per cent, overall construction cost will see nearly a 20 per cent increase, the members explained.
