Builders forum wants Govt to rein in steel, cement prices

Builders forum wants Govt to rein in steel, cement prices
Hindu Business Line, January 13, 2010, Page 2

Our Bureau, Hyderabad

The All-India Builders Forum has appealed to the Prime Minister, Dr Manmohan Singh, and the Union Finance Minister, Mr Pranab Mukherjee, to rein in steel and cement prices.

With the recession hitting them hard, the builders have asked the Prime Minister to take steps to reduce the cement prices to Rs 120 a bag from the present Rs 175 and steel prices to Rs 25,000 a tonne from Rs 44,000.

Though the production of steel and cement has gone up significantly, the prices of the branded steel and cement were ruling high, bringing all construction activity to a standstill, Mr Muppavarapu Satyanarayana, Forum President, said.

In a letter, copies of which were also sent to the Union Ministers of Urban Development and Steel and Mines, he said the rise in the prices of these commodities shot up the per-square feet rate significantly.

The industry had requested the Government to set up a regulatory body to keep a check on the rising prices of steel and cement. “But the Government has not taken any initiative in this direction,” he pointed out.

Alleging that the manufacturers formed cartels to hike prices, he asked the Government to take measures to foil such attempts.