CREDAI-Pune Metro Submits Memorandum To District Collector Over Steep Increase In Steel And Cement Prices

Members of CREDAI-Pune Metro submitting a Memo with District Collector, Pune
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Pune, February 13, 2021: The CREDAI- Pune Metro submitted a memorandum to Dr Rajesh Deshmukh, District Collector, Pune urging him to take note of cartelization by cement and steel manufacturers in India.

CREDAI in its memo has appealed to the Government Authorities for its intervention in regulating the prices of 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 Real Estate is already facing a sluggish market situation over the last couple of years and also due to the COVID pandemic. With the Steel and Cement manufacturers imposing an increase in their selling price across the country, it will be disconcerting for the developers and will lead to an increase in the construction cost and overall project cost. 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 to 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.”