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
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?