CREDAI worried about rising prices of cement, says 'Housing for all by 2022' may be tough

The Confederation of Real Estate Developers' Associations of India (CREDAI), the apex body of private real estate developers, has received numerous complaints and protest mails from its members across the nation against cement companies hugely increasing prices of cement.

The increase in cement price has negatively affected deliverability of affordable projects. Recently, the cement prices have witnessed a sudden jump of 20 percent to 40 percent in a short span of two months.

But on the other hand, the production cost of the cement has been reduced by various subsidies, for example coal and power, given by government.

While the government has laid emphasis on the housing industry and recognised its need, especially the affordable housing segment by awarding it infrastructure status, this unjust price rise may increase the construction cost which will have to be passed on to the consumers, the CREDAI believes.

CREDAI National has requested the Centre for an intervention to put an end to the unprecedented price hike of cement and rein in the price hikes so that they may contribute to the government's goal of 'Housing for All by 2022'.

"As per the mandate of the Central government, we are now inching closer towards the realisation of achieving 'Housing for All'. If this is to be successfully undertaken by private real estate developers and infrastructure developers in West Bengal too, these costs have to be brought under control. With over 350 affordable projects, providing 2 million units in the pipeline, CREDAI developers need to contain rising costs so as to ensure that affordable housing and the 'Housing for All mission' is on track and bound for success," said Nandu Belani, President, CREDAI Bengal.

"We are pained by the complaints of unjustifiable and collusive jacking up of cement prices by cement manufacturers across India which have a potential to create unnecessary roadblocks and impediments in achieving the goals of 'Housing For All by 2022' envisioned by Prime Minister Narendra Modi.

On earlier occasions, the Competition Control of India has pulled up cement manufacturers for collusive pricing and imposed hefty fines on them. It is estimated that Rs 100 rise in cement per bag results in an increase in construction cost by at least Rs 50 per square foot in the entire project." said, Sushil Mohta, vice-president, CREDAI-National.