Credai writes to PM; seeks action against ‘cartelisation’ by steel, cement manufacturers

Credai has written to the Prime Minister and all concerned ministries urging them to take note of cartelisation by cement and steel manufacturers.

The realtors’ body has also requested the Government for an immediate intervention in regulating the prices of construction raw material amidst the ongoing pandemic.

The Credai letter said with a continuous and sudden upsurge due to cartelisation in the prices of steel, cement and other raw material, real estate developers are experiencing an inevitable increase in construction cost and are faced with situation that will create a delay in delivery and stalling of projects, thereby impacting the homebuyers.

A press release by Credai said, high prices of cement and steel have been a serious concern and many industry leaders and ministers have expressed their concern over this on many public platforms. It said that MoS of State for Road Transport and Highways VK Singh warned cement companies against cartelisation at an industry event in September 2020. Union Minister for MSMEs and Road Transport and Highway Nitin Gadkari had also cautioned steel and cement manufacturers for the irrational upsurge in prices and had raised this issue with the PM.

“There is an urgent need to control the spiraling cement, steel and other raw material prices and I urge the Government to take necessary steps at the earliest” said Jaxay Shah, Chairman, Credai.

Cement prices have increased by more than 23 per cent and the steel prices by more than 45 per cent since the beginning of this year.