“The cement factory is taking advantage of this situation. It is not in the national interest. We are planning to implement Rs 111 lakh crore on infrastructure projects in the upcoming five years. If the price of cement and steel increase like this, then it will be very difficult for us”.
On Sunday i.e, 10 Jan 2021 the Union Minister for (MSMEs) Nitin Gadkari lashed out at Cement factories and said they are worsening the present situation of the real estate market.
Words from Developers on rising cement price
The big players in the cement and steel industry are indulging in monopolies to jack-up prices. Several developers have said the cement and steel industry are arbiritaily increasing the price. In January 2020 the price of a 50 kg cement bag was around Rs 350, but now it has increased from Rs 430 to Rs 450 which is around 23% to 28% increase. They also claimed that the rate of steel per tone was around Rs 40,000 and has now crossed Rs 54,000 which is around 35% increase.
Gadkari addresses press conference with Builders Association of India
While interacting with Builders Association of India, Western Region via video conferencing, Nitin Gadri said- “The cement factory is taking advantage of this situation. It is not in the national interest. We are planning to implement Rs 111 lakh crore on infrastructure projects in the upcoming five years. If the rates of cement and steel go like this, then execution of upcoming projects will become challenging for us.”
“It is very difficult to understand the price hike since every steel company has its own iron ore mines and there has been no increase in labor and power costs.” Further, he added.
In conclusion, he said the government is facing maximum problems in the real estate sector. He further said that the government is locating the cause of this problem and is in process of finding out the solution. He also said he will take the suggestion from the Finance Ministry and Prime Minister Narendra Modi.