Coal news and updates

Builders in the State are gearing up to declare construction holiday if the spiralling price of cement is not brought down immediately.

 

The builders are planning to stop construction works after November 6 if the government does not respond to the concerns of the construction industry.

 

Industry associations would make a representation to Chief Minister N. Chandrababu Naidu before bringing construction works to a halt.

 

GoM orders

 

The industry is of the view that the orders issued by the Group of Ministers (GoM) on cement have no impact on the market.

 

The builders attribute it to the GoM not uttering a word about the price at which cement is to be supplied to the common man or the industry. The GoM has washed its hands off by merely issuing orders directing the companies to supply cement at Rs. 230 to Rs. 240 per bag for government projects, the builders rue.

 

As the orders are specific to government projects, cement is not available at affordable price to the common man.

 

Cartelisation

 

The present situation is the result of cartelisation by the cement companies. They have cut down production and controlled dispatches.

 

“The issue has been brought to the notice of the government umpteen times but in vain,” says Confederation of Real Estate Developers’ Association of India (CREDAI) A.P. president A. Siva Reddy.

 

The cement companies have announced holiday till November 5, and the price is still not within reach of the common man or the construction industry.

 

Demand-supply gap

 

“At present, the price of a cement bag is around Rs. 310 to Rs. 320, depending upon the grade. The price was around Rs. 230 to Rs. 240 per bag prior to the Krishna Pushkarams,” he points out.

 

“We are not asking for underpricing. It is clear that the present price is not driven by any external conditions, as cartelisation of big and small cement companies is now an open secret. There is a lot of gap between demand and supply. The abnormal price hike may seriously affect labour employment in the construction industry, besides the construction activity itself. The government is expected to give a serious thought to it,” says Capital Region Builders’ Association (CRBA) vice-chairman A. Nagamalleswara Rao.

 

The Competition Commission of India (CCI) recently asked the cement companies and their lobby group, Cement Manufacturers’ Association (CMA), to pay a fine of more than Rs. 6,700 crore for alleged cartelisation.

 

The companies continue to form a cartel to jack up the prices. The State government is also remaining silent on the issue, he adds

SOurce: THe Hindu.com