Construction projects halted for a day as part of `No Workday’
Hyderabad: About 1,000 real estate developers in the city and about 800 across the State observed `No Workday’ on Monday as part of the protest against the rising building material costs. The call to suspend the work was given by industry body Confederation of Real Estate Developers’ Associations of India (Credai), Telangana Real Estate Developers’ […]
Hyderabad: About 1,000 real estate developers in the city and about 800 across the State observed `No Workday’ on Monday as part of the protest against the rising building material costs.
The call to suspend the work was given by industry body Confederation of Real Estate Developers’ Associations of India (Credai), Telangana Real Estate Developers’ Association (Treda), Telangana Builders Federation (TBF), and Telangana Developers Association (TDA).
The `No Workday’ saw the participation of over 2.5 lakh direct workforce, 60,000 indirect labor, and 25,000 to 30,000 technical staff involved in various projects.
The industry bodies said steel was priced around Rs 40,000 to Rs 45,000 per tonne last year. It touched Rs 85,000 to 90,000 this year. Aluminum prices went up by 45-50 per cent. Cement prices are on an upward spiral. The rise in raw material costs is putting the developer community in a spot.
The big increase in prices of building materials will hamper the real estate sector and lead to a hike in property prices and job losses if developers are forced to stop construction work, said RK Rao, Credai Hyderabad President.
“Real estate sector is one of the largest contributors to the GDP and is also the second largest employment provider. If the raw material providers form cartels and raise input costs unjustifiably, the builders will be forced to increase prices to absorb nominal increases. All industries are facing difficulties due to the pandemic. Raw material suppliers should not use this as an excuse to raise prices enormously. We urge the Government to intervene,” said Credai Hyderabad General Secretary V Rajashekar Reddy.
“If the costs of raw materials swing 15 per cent to 100 per cent, the overall cost increases exponentially and the builders are in trouble,” said Credai Telangana Chairman Ch Ramchandra Reddy.
Various construction industry bodies urged the government to set up an institutional mechanism to regulate prices in the critical sector like steel and cement to help business continuity.
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