Sharp increase in steel prices to hit NHAI projects in TN

15 Dec 2020 Editorial Team

The TMT steel prices have risen by approximately 25% in the last 45 days resulting in an increased cost-estimation of construction projects. Additionally, highway activities have been severely affected due to a rise in prices and a delay in delivery of TMT steel.

Moreover, the project targets that were set by the Ministry of Road Transport & Highways (MORTH) are unlikely to be achieved as the construction cost of residential projects have increased by 10%.

NHAI’s regional officer (Tamil Nadu and Puducherry) Pawan Kumar mentioned that there is a shortage in supply of steel at various construction sites. However, they do have a provision that might help with price escalation and compensate for the price hike.

Some projects of NHAI are likely to be hit such as six laning of Chennai- Tada’s 33 km of NH-5 at Rs 295 crore, six-laning of Sriperumbudur-Karaipettai for Rs 7.77 billion and the four-laning of Tamil Nadu-Kerala border in NH47.

Experts find it surprising to witness a sudden increase in prices since until October, iron was abundant.

The prices of TMT have risen from Rs 40,000 to Rs 50,000 for one tonne. It is likely to increase by Rs 10,000. Although activities in manufacturing industries and infrastructure projects are not completely operational,, the price hike is likely to force developers to slow down projects.

Image Source

Also read: Steel prices cross past peak of 2018

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

NHAI projects estimated at Rs 144.10 billion in Tamil Nadu are likely to be hit after an alarming increase in steel prices over the last 45 days. This is in addition to major state government and residential projects. The TMT steel prices have risen by approximately 25% in the last 45 days resulting in an increased cost-estimation of construction projects. Additionally, highway activities have been severely affected due to a rise in prices and a delay in delivery of TMT steel. Moreover, the project targets that were set by the Ministry of Road Transport & Highways (MORTH) are unlikely to be achieved as the construction cost of residential projects have increased by 10%. NHAI’s regional officer (Tamil Nadu and Puducherry) Pawan Kumar mentioned that there is a shortage in supply of steel at various construction sites. However, they do have a provision that might help with price escalation and compensate for the price hike. Some projects of NHAI are likely to be hit such as six laning of Chennai- Tada’s 33 km of NH-5 at Rs 295 crore, six-laning of Sriperumbudur-Karaipettai for Rs 7.77 billion and the four-laning of Tamil Nadu-Kerala border in NH47. Experts find it surprising to witness a sudden increase in prices since until October, iron was abundant. The prices of TMT have risen from Rs 40,000 to Rs 50,000 for one tonne. It is likely to increase by Rs 10,000. Although activities in manufacturing industries and infrastructure projects are not completely operational,, the price hike is likely to force developers to slow down projects. Image SourceAlso read: Steel prices cross past peak of 2018

Infrastructure Urban

26 Jun 2026

PRS International marks 18 years of global advisory work

PRS International Group of Companies recently said it has strengthened its position as a sovereign-grade multinational advisory organisation, marking nearly 18 years of operations across strategic communications, institutional advisory and international cooperation. The Group, with headquarters in Washington, D.C. and New Delhi, said its work spans more than 190 countries and supports governments, multilateral institutions, investors, corporations and private clients. The organisation said its services cover government advisory, crisis management, trade and investment facilitation, nation bra..

Infrastructure Urban

26 Jun 2026

dormakaba showcases access solutions at iDAC Chandigarh

dormakaba recently participated in iDAC Chandigarh 2026 at JW Marriott, engaging with architects, interior designers, developers, hospitality professionals and industry experts. The access solutions brand showcased a range of security and architectural products, including Mechanical Key Systems, Digital Cylinder, C Lever, Lever Handle, AIDO’s SLYNK Profiled Door System and Hotel Lock. The company said AIDO’s solutions added a design-led architectural and hospitality dimension to its presence at the event. The SLYNK Profiled Door System drew attention for supporting modern interiors where ..

Infrastructure Energy

26 Jun 2026

Tata Power Secures Karnataka Transmission Project

Tata Power has won a power transmission project in Karnataka after emerging as the successful bidder in a tariff-based competitive bidding process run by PFC Consulting, a wholly owned subsidiary of Power Finance Corporation. The company received a Letter of Intent from PFC Consulting for a renewable energy evacuation scheme to be delivered under a Build, Own, Operate and Transfer model. The award follows a competitive selection and positions the firm to expand its transmission activities in the state. As part of the contract, Tata Power will acquire the special purpose vehicle (SPV) created f..