Builders seek MoHUA intervention on rising cement, steel prices
Real Estate

Builders seek MoHUA intervention on rising cement, steel prices

The real estate developers sought the Ministry of Housing & Urban Affairs (MoHUA) to intervene through their pan-India National Real Estate Development Council (NAREDCO) to restrict the rise in the cost of raw materials, including steel and cement.

NAREDCO has suggested that import duty on steel would be eliminated from 7.5% for two years, and steel exports will be prohibited for two years until the issue of high pricing information in domestic markets is solved.

It announced that steel and cement prices should be regulated till restoring domestic supply and that both cement and steel should be categorised as low-end Goods and Services Tax (GST). Moreover, the council proposed allowing the use of imported cement.

Housing Minister, Hardeep Singh Puri, said that the rising input material prices would be a major setback for the Housing for All mission of the government, making affordable housing a distant dream.

Cement prices had nearly quadrupled to Rs 360 per bag of cement, up from Rs 250 in January 2020, and steel prices had tripled to about Rs 90,000 per tonne, up from around Rs 39,000 two years ago.

According to the developers, high prices of cement and steel have been a source of concern to the real estate industry, many tech titans and ministers have made their case on various public platforms.

Last year, the Minister of Road Transport and Highways (MoRTH), Nitin Gadkari, warned the steel and cement manufacturers about the irrational price hike and raised the issue with PM Narendra Modi. He added that the government intended to establish a steel and cement regulator.

While the price of vital raw bricks, steel and other raw materials has been rising in recent quarters, developers are concerned that the increased cost will have to be passed on to homebuyers this time.

Housing sales in vital property markets are rebounding due to record-low home loan interest rates, reduction in stamp duty reductions by the government, stable prices, and incentives.

Image Source

Also read: Steelmakers across Europe cut production as power costs surge

The real estate developers sought the Ministry of Housing & Urban Affairs (MoHUA) to intervene through their pan-India National Real Estate Development Council (NAREDCO) to restrict the rise in the cost of raw materials, including steel and cement. NAREDCO has suggested that import duty on steel would be eliminated from 7.5% for two years, and steel exports will be prohibited for two years until the issue of high pricing information in domestic markets is solved. It announced that steel and cement prices should be regulated till restoring domestic supply and that both cement and steel should be categorised as low-end Goods and Services Tax (GST). Moreover, the council proposed allowing the use of imported cement. Housing Minister, Hardeep Singh Puri, said that the rising input material prices would be a major setback for the Housing for All mission of the government, making affordable housing a distant dream. Cement prices had nearly quadrupled to Rs 360 per bag of cement, up from Rs 250 in January 2020, and steel prices had tripled to about Rs 90,000 per tonne, up from around Rs 39,000 two years ago. According to the developers, high prices of cement and steel have been a source of concern to the real estate industry, many tech titans and ministers have made their case on various public platforms. Last year, the Minister of Road Transport and Highways (MoRTH), Nitin Gadkari, warned the steel and cement manufacturers about the irrational price hike and raised the issue with PM Narendra Modi. He added that the government intended to establish a steel and cement regulator. While the price of vital raw bricks, steel and other raw materials has been rising in recent quarters, developers are concerned that the increased cost will have to be passed on to homebuyers this time. Housing sales in vital property markets are rebounding due to record-low home loan interest rates, reduction in stamp duty reductions by the government, stable prices, and incentives. Image Source Also read: Steelmakers across Europe cut production as power costs surge

Next Story
Real Estate

Mahindra Lifespaces Bags Rs 12.5 billion Redevelopment in Mulund

Mahindra Lifespace Developers (MLDL), the real estate and infrastructure development arm of the Mahindra Group, has been appointed as the preferred developer for the redevelopment of a premium housing society in Mulund (West), Mumbai. The project will be developed across a 3.08-acre land parcel, with an estimated development value of approximately Rs 12.5 billion. Strategically located, the site enjoys proximity to major connectivity points—just 1.4 km from the upcoming Mumbai Metro Line 5 and 0.8 km from the Goregaon-Mulund Link Road. It also offers seamless access to the Eastern Expre..

Next Story
Infrastructure Urban

Snowman Adds Warehouses in Kolkata and Krishnapatnam

Snowman Logistics, India’s leading integrated temperature-controlled logistics company, has announced the commencement of operations at its two new state-of-the-art, owned cold storage facilities in Kolkata and Krishnapatnam. With these additions, the company’s total pallet capacity has reached 1,50,754, spanning 43 warehouses in 20 cities across the country. The newly operational Kolkata facility offers a storage capacity of 5,630 pallets, while the Krishnapatnam facility holds 3,927 pallets. These warehouses are equipped with advanced automation and infrastructure designed to enhanc..

Next Story
Resources

Noesis Enables IHCL Hotel Deal in Udupi–Manipal Corridor

NOESIS Capital Advisors, India’s leading hotel investment advisory firm, has successfully facilitated a landmark hospitality transaction in the Udupi–Manipal region of Karnataka. The deal involves the acquisition of a nearly completed, 130-key upscale hotel that will operate under one of the premium brands of IHCL, reinforcing NOESIS’ position as a preferred partner for strategic hospitality transactions across India. Strategically located on the Udupi–Manipal Highway, the 1.03-acre property will cater to business travellers, pilgrims and families visiting Manipal University. With..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?