Credai Alleges Cartelisation by Steel & Cement Manufacturers

Financial Express reported that the real estate industry body Credai has written to Prime Minister Mr Narendra Modi alleging that steel and cement
Credai Alleges Cartelisation by Steel & Cement Manufacturers
Cartelisation Steel Cement Moneycontrol

Financial Express reported that the real estate industry body Credai has written to Prime Minister Mr Narendra Modi alleging that steel and cement manufacturers are indulging in cartelisation and sought the government’s immediate intervention in regulating prices of key raw materials, pointing out that a continuous upsurge will raise project costs and have a cascading effect on homebuyers. Credai said “With a continuous and sudden upsurge due to cartelisation in the prices of steel, cement and other raw materials, real estate developers are experiencing an inevitable increase in construction cost and are faced with a situation that will create a delay in delivery, stalling of projects in some cases, thereby impacting the homebuyers at large. Builders are facing an uphill task of further convincing the customers of this additional burden.”

Credai has claimed “Cement prices have increased by more than 23% and steel prices by over 45% since the beginning of this year.”

Credai chairman Mr Jaxay Shah said that “The sector has been working on wafer-thin margins and is battling unsold inventory on one hand and unfinished projects due to lack of funds on the other. With demand stagnant, developers have not increased prices and are selling projects at affordable rates. Indian real estate plays an important role in strengthening the economy. Besides employing more than 40 million workers, the sector also is a key partner in many central government schemes such as affordable housing and housing for all by 2022, and supports more than 250 ancillary industries. But the sector feels ignored because of lack of support from the government on various issues. There is an urgent need to control the spiralling cement, steel and other raw material prices and I urge the government to take necessary steps at the earliest.”

Related Stories

SteelGuru Business News
www.steelguru.com