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Nizamabad: Builders feel the pinch as construction cost escalates
Builders feel the pinch as construction cost escalates
- The prices of building materials in the market are increasing significantly day by day
- The middles class people and builders are upset with sudden rise in cement and steel prices with the increase in registration charges of properties
- Many feel that the cement companies have backing of the government as they jack up prices arbitrarily
Nizamabad: With the increase in registration charges and land value by the State government, the cement, iron and steel companies have also jacked up prices of their products, thus making constructionof a house more expensive for average person and builders.
As the new registration charges kicked in from February 1, the property prices have skyrocketed in the Nizamabad. On the other hand, the cement and iron prices have also gone up escalating input cost for builders.
The poor and middle class builders, who happen to be having not very deep pockets, are deeply upset with the sudden rise in the prices of cement and iron.
The price of a cement bag has become dearer by Rs 50 in a single day on Tuesday. The Basta price increased by Rs 100 in three installments in four months. The companies have increased the prices of all types of cement sold in the market. Traders said the price of cement bags of major companies has gone up from Rs 350 to Rs 400. Roshan, who is building a house, said the price of cement bags of various companies has gone up from Rs 305 to Rs 365.
Traders and builders are critical of the State government for failing to curb rising cement prices. People are alleging that the cement companies are arbitrarily raising the cement prices due to the support of the government. Chief Minister Chandrasekhar Rao's good relations with Andhra Pradesh Chief Minister YS Jagan Reddy is also blamed for rise in cement prices. The builders alleged that KCRhas been allowing the hike of cement prices as Andhra Pradesh Chief Minister Jagan Reddy's relatives own a cement company.
Not only that, the price of iron is also skyrocketing. During the week, the price of iron rose from Rs 8,000 to Rs 10,000 per tonne. The price of a special kind of iron used in construction has gone up from Rs 65,000 to Rs 73,000 per tonne. Another company increased its price of iron ore from Rs 56,000 to Rs 66,000 per tonne. Thus, the uncontrolled rise in iron and cement prices have become an unbearable burden on builders.
The prices of building materials in the market are increasing significantly day by day. As a result, the construction sector is mired in crisis.
Engineers estimate that construction costs have risen by 20 percent due to rising prices. Under these circumstances, the conditions are such that the construction has to be stopped due to escalating cost. Due to this, construction workers are at risk of losing their jobs.
Builders want the government to control prices and protect the construction sector. The Telangana government should take immediate remedial action to prevent the construction sector from being affected, they said.
Market experts predict that the price of iron likely to rise by Rs 2,000 to 3,000 per tonne by the end of this month. The government should immediately step in to control the prices, the builders demand.
