Builders said the cost of cement and steel constitute more than half of the construction expenses and they would not have a choice but to pass it on to buyers. "The cement cartel exists. The government should appoint a regulatory body to look into the prices of cement and steel as companies cannot just go on increasing prices," said Mahesh M Mudda, chairman of the association. In the last two years, the cement and steel share of the construction cost has gone up from 40 per cent to 52 per cent, BAI claimed. |
"Cement rates jumped to Rs 250 a bag from Rs 165 and steel reached Rs 55,000 a tonne from Rs 35,000. This abnormal rise is not right," added Mudda.
The construction of a square foot in the city requires an investment of Rs 1,100 to Rs 1,300 on an average, they said. Smaller builders in tier I and tier II cities will face the burden.
D L Desai, convenor, BAI, said that in Mumbai, imported cement from Pakistan iscosting builders Rs 204 a bag, Rs 10 lower than domestic cement.
He said that at a time when company profits are going up, cement prices should be below Rs 200 a bag.
