Cement woes for Real Estate developers
The National Real Estate Development Council (NAREDCO) has said that construction costs have risen steeply at present. This northward going going price is due to the increase in the rates of cements. Real estate developers say that cement manufacturers have hiked the price of cement to nearly Rs 100 per bag which is a hike of 15-20 percent. They also allege that there is also an acute shortage of cement which has led to delay in constructions work. Many leading company’s like the DLF ,ATS, and Raheja have said that if the present scenario persists for too long than they will not be able to deliver the projects at the scheduled date.
NAREDCO has infact lodged a formal complaint with the Competition Commission of India (CCI) against cement manufacturers. Cement prices have gone up from Rs 180 per bag in August to Rs 280 per bag in October. Confederation of Real Estate Developers Association of India, had also approached CCI, asking for an enquiry into the artificial shortage of cement and the exorbitant increase in the price set by cement manufacturing companys.
Many developers like Raheja, have started to import cement from Pakistan and other countries, which is comparatively much cheaper. The cost of such import is generally around Rs 235 per bag. The acute shortage of cement in the market can also be accredited to cement manufacturing companies refusal to giving any credit to real estate developers. They are delivering the cements only to the ones that are paying in advance. However even when the payments are made in advance the deliveries of cement bags take up to 15 days.
Source: Indian Realty News
Acute shortage, ATS, Cement manufacturer, Cements, Competition Commission of India, Confederation of Real Estate Developers' Association of India, Constructions work, DLF, Hike in price, National Real Estate Development Council, Pakistan, Raheja
