Cement price escalation to impact real estate projects: NHAI

05 May 2021 CW Team

The National Highways Authority of India (NHAI) told the media that the increase in the price of raw materials such as cement and steel would not impact road construction as much as real estate projects.

An increase in prices of raw materials such as steel and cement could cast a shade on the construction cost of highways as well as real estate projects.

According to NHAI, in the case of roads, a majority are being made on bitumen, so the impact will not be as much.

Therefore, there won’t be an impact on costs but as far as bridges are concerned, there will be a huge impact because they are built on cement and steel, said NHAI.

The Covid-19 pandemic-led lockdown is impacting the demand for cement across the country. Industry insiders say demand has slowed down by 20-30% in May, as compared to March.

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Cement is required primarily in housing construction, infrastructure projects, industrial construction and commercial real estate, sectors that are facing a slowdown due to Covid-19.

Cement players expect demand from large government projects. The government has ambitious plans in the infrastructure space like the Bharatmala project and the Mumbai-Nagpur Express Highway.

It has also announced metro projects in several cities, and the demand for cement will come from housing for all projects.

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Also read: Cement prices to be hiked, as demand improves

Also read: Cement demand expected to rise by up to 20% in fiscal 2022: ICRA

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