Maha realtors to halt construction as raw material costs skyrocket
Real Estate

Maha realtors to halt construction as raw material costs skyrocket

Maharashtra realty developers are planning to stop purchasing raw material and pause the construction activity at their ongoing sites owing to escalating prices of key input materials including cement and steel.

The apex body of more than 3,000 builders in Maharashtra, Confederation of Real Estate Developers' Associations of India (CREDAI), threatened to cease work at its construction sites owing to the steep increase in rates of building materials which may directly influence the costs of apartments and delay the possession schedules promised to the buyers.

CREDAI Maharashtra President Sunil Furde told the media that the costs of cement, steel, sand, bricks and all other essential building materials have been steadily escalating since the last two year and have currently skyrocketed to unaffordable levels.

The costs of steel -- the most essential building element -- has doubled from Rs 42,000 per tonne to Rs 85,000 per tonne now, cement bags have increased from Rs 260 to Rs 400, cost of four-inch brick has increased from Rs 6,500/1,000 to Rs 8,000/1,000, sand has escalated from Rs 6,000/brass to Rs 7,500/brass, while wash sand has increased from Rs 3,800/brass to Rs 4,800/brass, Furde said.

Besides, the price of all other materials such as fittings, tiles, electric wires, pipes, fabrications, sanitaryware, secondary minerals, and labour charges have also increased by about 40%. With such high costs, they cannot afford to build homes. So all CREDAI Maharashtra members are planning to close all building activities.

The CREDAI has shot off a letter to the Maharashtra government, comprising Deputy CM and Finance Minister Ajit Pawar and Revenue Minister Balasaheb Thorat, asking to verify whether the surge in raw material prices is natural or due to hoarding for profiteering during the pandemic lockdown period.

The CREDAI has additionally requested Maharashtra Real Estate Regulatory Authority (M-RERA) to extend the completion deadline for the shut projects.

Furde said that apart from the rising costs of raw materials, the proposed 1% Metro Cess to be imposed on all property acquisitions in Mumbai, Pune, Thane and Nagpur from April 1 will further hit consumers planning to purchase a house, and requested the state government to reconsider or delay the move by at least two years.

Image Source

Also read: Builders urge Maha officials to defer metro cess levy by 2 years

Maharashtra realty developers are planning to stop purchasing raw material and pause the construction activity at their ongoing sites owing to escalating prices of key input materials including cement and steel. The apex body of more than 3,000 builders in Maharashtra, Confederation of Real Estate Developers' Associations of India (CREDAI), threatened to cease work at its construction sites owing to the steep increase in rates of building materials which may directly influence the costs of apartments and delay the possession schedules promised to the buyers. CREDAI Maharashtra President Sunil Furde told the media that the costs of cement, steel, sand, bricks and all other essential building materials have been steadily escalating since the last two year and have currently skyrocketed to unaffordable levels. The costs of steel -- the most essential building element -- has doubled from Rs 42,000 per tonne to Rs 85,000 per tonne now, cement bags have increased from Rs 260 to Rs 400, cost of four-inch brick has increased from Rs 6,500/1,000 to Rs 8,000/1,000, sand has escalated from Rs 6,000/brass to Rs 7,500/brass, while wash sand has increased from Rs 3,800/brass to Rs 4,800/brass, Furde said. Besides, the price of all other materials such as fittings, tiles, electric wires, pipes, fabrications, sanitaryware, secondary minerals, and labour charges have also increased by about 40%. With such high costs, they cannot afford to build homes. So all CREDAI Maharashtra members are planning to close all building activities. The CREDAI has shot off a letter to the Maharashtra government, comprising Deputy CM and Finance Minister Ajit Pawar and Revenue Minister Balasaheb Thorat, asking to verify whether the surge in raw material prices is natural or due to hoarding for profiteering during the pandemic lockdown period. The CREDAI has additionally requested Maharashtra Real Estate Regulatory Authority (M-RERA) to extend the completion deadline for the shut projects. Furde said that apart from the rising costs of raw materials, the proposed 1% Metro Cess to be imposed on all property acquisitions in Mumbai, Pune, Thane and Nagpur from April 1 will further hit consumers planning to purchase a house, and requested the state government to reconsider or delay the move by at least two years. Image Source Also read: Builders urge Maha officials to defer metro cess levy by 2 years

Next Story
Infrastructure Transport

NHAI to Upgrade Tamil Nadu Highways

To reduce congestion on key national highways in Tamil Nadu, the National Highways Authority of India (NHAI) has planned capacity upgrades for at least eight highway stretches. The improvements will include bypasses, flyovers, and four-laning in Salem, Coimbatore, Tiruppur, Nilgiris, and Cuddalore. NHAI has invited tenders to appoint consultants for preparing detailed project reports (DPRs) on these expansions. The affected highways include NH-181, NH-81, NH-532, NH-85, and NH-136. Proposed Upgrades Across Highways - NH-181 (Coimbatore-Gundlupet Route): This stretch will see four bypasses an..

Next Story
Infrastructure Transport

Ludhiana-Bathinda Highway Revived as NHAI Invites Bids

The Ludhiana-Bathinda highway project, initially stalled due to land acquisition issues, has been revived as the National Highways Authority of India (NHAI) invites fresh bids to resume construction. The project, part of the Ludhiana-Ajmer Economic Corridor, is estimated to cost Rs 24.61 billion and will be executed in two phases. Package 1, covering 30.03 km, has a budget of Rs 9.06 billion, while Package 2, spanning 45.25 km, is set to cost Rs 15.55 billion. The NHAI had previously withdrawn the project due to unavailability of land. However, intervention from Union Minister for Road Trans..

Next Story
Infrastructure Urban

Dilip Buildcon Wins Rs 460M Arbitration

Infrastructure major Dilip Buildcon has secured an arbitration award of Rs 460 million against the National Highways Authority of India (NHAI) over delays and breaches during the execution of a highway project in Karnataka. The dispute pertains to the Rehabilitation and Upgradation of the Kerala Border to Kollegala Section of NH 212, awarded to Dilip Buildcon under an Engineering, Procurement, and Construction (EPC) agreement dated June 6, 2014. The project involved two-lane expansion with paved shoulders and four-lane development under the National Highways Development Project (NHDP) Phase IV..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?