Builders seek MoHUA intervention on rising cement, steel prices

15 Mar 2022 CW Team

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

Infrastructure Urban

30 Oct 2025

Infrastructure Opportunity Outlook by IMPACCT.Info

India’s infrastructure pipeline is witnessing dynamic activity across stages — from immediate bidding to future planning. IMPACCT segments these into three categories: Immediate, 3–6 Month, and Future Opportunities, enabling businesses to identify, prepare, and participate in high-value tenders and projects across sectors...To read the full article Click Here..

Real Estate

30 Oct 2025

Serene Communities, Prathima Group Invest Rs 4 billion in Hyderabad

Serene Communities by Columbia Pacific, India’s largest senior living operator, has partnered with Prathima Group to develop two senior living projects in Hyderabad, marking its entry into Telangana. The collaboration represents an investment of Rs 4 billion, combining Serene’s international expertise with Prathima’s local development experience. The first project, Serene BILVANI One, launched in Shankarpally, is Hyderabad’s first premium senior living community. Designed for independent and active ageing, it features senior-friendly architecture, barrier-free design, and wellness..

Infrastructure Urban

30 Oct 2025

India remains our most important market

Foundamental, the world’s leading venture capital platform focused on the project economy, has launched its third fund to strengthen its presence in India, APAC, and other global markets. Led by Berlin-based Managing Partners Shubhankar Bhattacharya and Patric Hellermann, Fund III aims for a final close by the end of 2025. In an exclusive interaction with CW, Bhattacharya shares insights on the fund’s mandate, India’s role in their strategy, and the opportunities they see in the construction-tech and project-based sectors. Can you briefly explain Fund III’s mandate and how In..