The Hindu Business Line : Update steel cost index, urge builders

New Delhi, May 28 Lamenting that the mismatch between the wholesale price index (WPI) of steel and its actual prevailing market price had led to heavy financial losses for the construction agencies, the Builders’ Association of India (BAI) has sought compensation for the projects undertaken during October 2007 and March 2008 when steel cost index remained unaffected despite the rise in market rates.

“From October 2007, the WPI of steel (bars and rods) stagnated at 258.3 till March 2008, whereas the market rate of steel increased by about 50 per cent. Similarly, the cement index has not moved up in tandem with the increase in the market rate. The situation in the case of bitumen is also similar,” Mr S.P. Goel, President of Builders’ Association of India, said.

BAI alleged that the various indices pertaining to cement, steel, bitumen and all commodities had not been updated in tune with the prevailing market rates of construction materials due to poor input price data. “Till date the construction agencies have been continuing with the execution of their project albeit with great difficulties and under a lot of pressure, considering the importance of certain projects. We will observe a protest day shortly, and if despite our agitation there is no suitable action on the issue, the construction agencies will be forced to resort to an indefinite bandh or closure of works,” he said.

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