The state government's efforts to persuade steel manufacturers to reduce the price of iron and steel for government projects have failed. (Representational image)
Hyderabad: Steep hike in the rate of steel and iron has brought construction activities to a halt. Prices have increased by 60 per cent in the last six months and 30 per cent in the last two months. Unable to bear escalating costs, contractors and builders have decided to stop their works for the time being.
With the implementation of Real Estate Regulatory Agency (Rera), the builders are now urging the government to allow them to revise the sale agreement upwards if the overall costs exceed five per cent by arguing that they can manage cost escalation only up to 5 per cent and the rest has to be borne by the buyers.
With sales decreasing in the past three months, iron and steel traders too are suffering great loss.
The state government’s efforts to persuade steel manufacturers to reduce the price of iron and steel for government projects have failed.