Real estate developers call for strike in state

Building construction work, the second largest sector after agriculture in the state, would come to standstill in view of an indefinite strike called from March 5 by the real estate developers to protest steep rise in price of rawmaterials.

Federation of Real Estate Developers of Gujarat (FREDAG) has given a call to contractors of both private and governmentbuildings, to stay away from work to pressurize themanufacturers of cement and steel to lower the prices.

Cement and steel manufacturers had announced price hikes by creating a syndicate. This has resulted in an unbearable price hike in cement, which has imposed an additional financial burden of Rs. 24 000 crore on construction industry.

As a result, the average cost of construction has risen by 15 per cent, said president Rashmibhai Patel here today.

Chairman of Rajkot Builders' Association, Mukeshbhai Sheth said that to protest this un-bearable price rise in cement, builders of Saurashtra and Kutch had called a meeting and has decided to stop construction. There are 64 builders associated with Rajkot Builders Association.

"The price of a cement bag has risen to Rs157 to Rs 170 from the earlier levels of Rs.95 to Rs 100. Generally, 45 to 50 bags of cement are to be used per 100 sq ft. So, after the price hike the project cost will go up by Rs.1800 per sq. ft," said Mukeshbhai.

A good monsoon season has supported the construction sector, and the future is bright for the industry. This has encouraged the cement producers to hike the price by creating syndicate with each other.

Tile industries of Morbi, and all builders, government and private contractors of Rajkot, Jamnagar, Amreli, and Junagadh have lend their support to the strike the association officials said. "The strike will continue till price stability is achieved", they added.

They said there was no increase in the prices of rawmaterials being used in the production of cement and labour charges and added that the manufacturers have imposed the heavy burden on the industry.

"Many countries like china and malaysia have been dumping their products in india and it could also be possible to import cement from these countries. But to encourage our own industries, the import would be the last resort", they said.

They urged the Union government to intervene to bring end to the issue, saying the rise would render about 3.20 crore people jobless.