Union Minister Criticizes Cement Factories
"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."
Union Minister for (MSMEs) Nitin Gadkari expressed his displeasure with cement factories on Sunday, January 10th, 2021, stating that they are exacerbating the current real estate market situation.
Developers Speak Out on Rising Cement Prices
Large players in the cement and steel industries are reportedly indulging in monopolistic practices to inflate prices. Developers have voiced concerns that the cement and steel industries are arbitrarily raising prices. In January 2020, a 50 kg bag of cement cost around Rs 350. However, the price has now increased to between Rs 430 and Rs 450, representing a 23% to 28% hike. Additionally, the price of steel per tonne, previously around Rs 40,000, has now crossed Rs 54,000, a 35% increase.
Gadkari's Interaction with Builders Association of India
During a video conference with the Builders Association of India, Western Region, Nitin Gadkari stated, "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."
He further expressed, "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."
Conclusion
Gadkari highlighted the significant challenges the government is facing in the real estate sector. He noted that the government is working to identify the root cause of the problem and is in the process of finding a solution. He also mentioned that he would seek suggestions from the Finance Ministry and Prime Minister Narendra Modi.