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

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