Hyderabad: The state government has agreed to raise steel price for its flagship double-bedroom housing project across Telangana.
Municipal administration and urban development minister K.T. Rama Rao and housing minister A. Indrakaran Reddy held a meeting with representatives from the steel manufacturers industry where it was agreed that the latter will supply steel at '43,660 per tonne from February 16 to April 16.
The current market value for steel in the open market had gone up to '53,100, which includes 18 per cent GST. The ministers said the government was to construct 2.6 lakh 2BHK units across Telangana. In all, the housing scheme would require 5.27 lakh tonnes of steel for construction with rural areas accounting for 1.45 lakh tonnes, urban areas 1.04 lakh and the rest for GHMC limits.
In view of the massive demand, the government urged the manufacturers to sell steel at discounted (base rate) price.
The project had come to a grinding halt at several locations across the state as steel manufacturers were not willing to supply steel at the earlier agreed price of '32,550 per tonne. Steel price rose to '53,100 in January and companies demanded a higher price to supply steel to the flagship project.
After a series of meeting with the steel manufacturers, the government fixed the price for '43,660 which is '9,440 lower that the current market price. This would ease the burden of '264.6 crore to the Telangana State Housing Corporation Limited (TSHCL) for the project.
