October 16, 2008

AP builders threaten to stop buying steel

BL reported that due to recent increase in price and introduction of e auction by Rashtriya Ispat Nigam Limited and other manufacturers, the Builders Association of India has threatened to bring construction activity to a standstill by stopping buying of steel.

The report cited Mr Vishnu Kumar Raju chairman of local chapter of BA described the increase as abnormal and unwarranted and regretted short supply of stocks to the long term contract dealers of Andhra region and showing interest to sell steel at higher price to outsiders. He announced that the all India council would chalk out its strategy soon to bring pressure for price regulation.

Another member of national council said that development would suffer due to irrational increase in the price and sought some sort of mechanism to control prices. He said the construction cost would also go up steeply due to the decision of the RINL and other steel manufacturers.

Dr YS Rajasekhara Reddy chief minister informed representatives of builders that he would write a letter to the centre explaining the need to control the rising prices of steel. Dr Reddy assured that the state government would make all efforts to arrest the rise in price of cement.