COIMBATORE: The district-chapter of Builders Association of India (BAI) has urged the state government to control the steep increase in prices of construction materials.
The association said the prices of M-sand, P-sand and jelly had increased by almost 30% since February 1. “This sudden price escalation has badly affected the builders, contractors and building owners, leading to financial losses and reduction/suspension of construction activities. This has also shot up the prices of byproducts such as readymade concrete and fly ash bricks,” it said.
Ganesh Kumar, chairman, district chapter of BAI, said the reasons stated by the crushers for the unexpected price hike were illogical. “They have attributed the increase in prices to the hike in power tariff and restrictions in mining, etc. In the recently conducted state-level gathering, we had appealed the state head of crushers association to submit statistical data to substantiate their claims. Based on it, we will approach the government for negotiations.”
He said the price hike had also resulted in loss of jobs of construction workers, including guest workers. “New projects are likely to be postponed, resulting in a slowdown in the sector. Bearing the increased expenses would be laborious for the builders. And all customers wouldn’t readily accept the cost escalation in the ongoing projects.”
Pointing out that the construction industry was a major contributor to the state revenue, Kumar said the change in scenario would certainly bring down the industry’s contribution to the state economy by 30-40%. “We have submitted a petition to district collector Kranthi Kumar Pati to be forwarded to the state to address the situation.”
He said the BAI members, along with the representatives of the construction industry, would hold a two-day hunger strike in Chennai to protest the price hike. “The dates will be announced in a couple of days.”
