Press Releases

CREDAI members protest against nationwide unprecedented cement price hike

Thu, 2017-Apr-13 00:16 — rcsahu@credai.org

CREDAI has received numerous complaints and protest mails from its members across India about cement companies hugely jacking up prices of cement thus negatively affecting deliverability of affordable projects. Cement prices have witnessed a sudden jump of 20% to 40% in a short span of 2 months across India, while there are reports that cost of production of cement has remained constant with government according various subsidies to cement manufacturers like cost of power, coal etc. While the Government has laid emphasis on the housing industry and recognised its need, especially the affordable housing segment by awarding it infrastructure status, this unjust price rise may increase the construction cost which will have to be passed on to the consumers. CREDAI has regularly requested the Government of India for a swift intervention to put an end to the collusive practices in the industry and rein in the price hikes so that they may contribute to the Government goal of Housing for All by 2022.

Mr. Jaxay Shah – President, CREDAI, said, “We are pained by the complaints of unjustifiable and collusive jacking up of cement prices by cement manufacturers across India which have a potential to create unnecessary roadblocks and impediments in achieving the goals of Housing For All by 2022 envisioned by our Honourable PM. On earlier occasions too the Competition Control of India has pulled up cement manufacturers for collusive pricing and imposed hefty fines on them. It is estimated that Rs 100/- rise in cement per bag results in increase in construction cost by at least Rs 50/- per square foot in the entire project. We are in talks with other affected parties like Builder’s Association of India as well as National Highway Builder’s Federation for possible joint action against this artificial price rise.

As we move towards achieving the Housing for All goal, it is imperative that these costs are brought under control. With over 350 affordable projects, providing 2 million units in the pipeline, CREDAI developers need to contain rising costs so as to ensure that affordable housing and the Housing for All mission is on track and bound for success.”

About CREDAI

Established in 1999, The Confederation of Real Estate Developers’ Association of India, better known as CREDAI, is the apex body for private real estate developers in India, representing over 11,500 developers through 23 states and 168 city chapters across the country. CREDAI has organized the industry and is accepted as trusted partner with Government representatives, policy makers, investors, finance companies and consumers.

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