Sharp increase in steel prices to hit NHAI projects in TN
Steel

Sharp increase in steel prices to hit NHAI projects in TN

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 Source

Also read: Steel prices cross past peak of 2018

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

Next Story
Resources

Ajmera Realty launches tree drive on Environment Day

Ajmera Realty & Infra India marked World Environment Day with a large-scale tree plantation initiative—Plant-with-Purpose—across its projects in Mumbai and Bangalore. The drive was inaugurated at Ajmera Manhattan and Ajmera Greenfinity in Wadala, with senior company officials and residents in attendance. The campaign encourages residents to embrace eco-conscious, self-reliant lifestyles by growing useful plants and trees within their communities. Horticulture expert Devendra Bhekar guided residents on creating and maintaining green spaces. Ajmera Realty planted over 500 trees..

Next Story
Resources

Twaron®-reinforced tyre powers Brunel’s solar race car

Teijin Aramid’s Twaron® with circular content will debut in Bridgestone’s race tyres for the 2025 Bridgestone World Solar Challenge, supporting the Brunel Solar Team’s Nuna 13 car. This marks the first use of the recycled-content aramid in a high-performance race tyre. The Twaron®-reinforced belts help enhance durability, reduce rolling resistance, and maintain lightweight strength—critical for the 3,000-km solar race across Australia. Bridgestone combines this with ENLITENTM tech and other recycled inputs to maximise environmental and performance outcomes. Teijin Aramid, a..

Next Story
Building Material

Kamdhenu Paints launches new wood coating range

Kamdhenu Paints has launched a comprehensive premium wood coating range designed for both interior and exterior applications. The collection includes high-performance solutions like Kamwood 2K PU for a rich matt or high-gloss finish, Kamwood 1K PU for clarity and stain protection, and the Kamwood Melamyne system for a smooth, durable finish. Also featured are Kamwood Wood Stains, which enhance wood grains with vibrant colour, and NC Sanding Sealer for high-build grain filling. The range is supported by Kamwood Thinners for ease of application and optimal finish. Saurabh Agarwal, MD, ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?