The Hindu Business Line : PM’s intervention sought on cement, steel prices issue

Hyderabad, March 18 The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, today dashed off a letter to the Prime Minister, Dr Manmohan Singh, seeking his intervention in checking the unprecedented rise in price of cement and steel.

This letter follows a telecom the Chief Minister had with the Prime Minister earlier today to apprise him of the concern of rising prices of these two vital inputs for the construction industry, according to a statement.

Dr Reddy wrote “the unprecedented increase in the prices of cement and steel is severely affecting the construction and infrastructure sectors. Andhra Pradesh has embarked upon the ambitious programmes of housing (providing shelter to the common man) and Jalyagnam (irrigation projects for the benefit of framers and to provide food security) and several industrial and infrastructure projects. Andhra Pradesh is the largest consumer of cement and steel as of now.”

Structural Steel

In the case of structural steel, prices are up by more than 25 per cent between April 2007 and March 2008.

The price of cement has gone up to Rs 230 a bag from Rs 160 and steel prices have touched Rs 50,000 a tonne up from Rs 28,500 in past six months.

This has been seriously jeopardising the targets set by the State Government and dislocating the work schedules, he explained.

He observed that the cement and steel producing industrialists are resorting to exorbitant revisions in the prices and these increases are indiscrimate with reference to their production costs.

Citing these extraordinary circumstances, Dr Reddy wanted the Prime Minister to intervene and direct suitable corrective measures.

More Stories on : Real Estate & Construction | Cement | Steel | Andhra Pradesh

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