Economy

Roll back price hike of iron and steel: Builders Association of India

Our Bureau Hyderabad | Updated on January 24, 2018 Published on January 24, 2018
SN Reddy, National Vice-President, Builders Association of India

The Builders Association of India, the apex representative body of civil engineering construction companies, has demanded roll back of iron and steel price hike as the high price would have a huge impact on viability of projects.

The prices of iron and steel has gone by over 60 per cent in the recent times making all projects and construction unviable, according to the association.

After a meeting of BAI members, SN Reddy, National Vice-President, Builders Association of India, along with B Sugunakar Rao, State chairman Telangana at BAI, the members demanded the government to fix the basic minimum price of iron and steel on all existing projects as such unprecedented hike in input costs add additional financial burden to the existing contract work and make the projects unviable.

The price of iron and steel has increased from Rs 30,000 per tonne 6 months ago to about Rs 48,000 to Rs 50,000 per tonne today without any such steep hike in input costs.

They reasoned that the Indian steel manufacturers have started exporting steel to China, creating scarcity in the local market and thus leading to high prices.

SN Reddy said, “All the members of the association who are executing the government and private Projects are facing lot of difficulties as the projects are becoming tough to execute due to the huge surge in the price of Iron & Steel. This hike will force us to stop work on the projects.”

The construction will come to a standstill unless the government intervenes to effect a roll back of price hike, he said.

Fixing prices of the finished products has become a tough task for the industries due to price fluctuation of this magnitude.

The industry is demanding that the government should set up a committee to regulate the prices of steel.

Published on January 24, 2018
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