Builders of AP and T to stop constructions

HYDERABAD : Having reached a dead end in convincing the cement manufacturers to roll back the price hike, which has escalated the cement prices by an additional Rs 100 per a 50 kg bag, the real estate developers in Telangana and Andhra Pradesh States have decided to observe a 'purchase holiday' for cement for a week, starting from July 5.

The real estate bodies comprising the Confederation of Real Estate Developers' Associations of India (CREDAI), Andhra Pradesh Real Estate Developers' Association (APREDA), Telangana Real Estate Developers' Association (TREDA), Builders Association of India (BAI) and Telangana Builders Federation have formed a Joint Action Committee (JAC) to oppose the abnormal hike in cement prices in the recent past.

They decided to observe a cement 'purchase holiday' from July 5 to 12, during which no cement orders will be placed by the developers, forcing the construction activity come to a complete halt.

The JAC, represented by over 2,000 developers and 1,000 small, medium and mega contractors unanimously decided to stop the procurement of cement, if the cement manufacturers fail to roll back what they call as an 'unjustified increase' in cement prices, immediately.

The Telugu speaking States of Telangana and Andhra Pradesh account for about 30 per cent of the country's total cement production, amounting to 325 million tonne.

The JAC has called governments in both the States to take stringent action against the cement manufacturers for cartelisation to increase the prices.

The JAC, represented by over 2,000 developers and 1,000 small, medium and mega contractors, unanimously decided to stop the procurement of cement, if the cement manufacturers fail to immediately roll back what they call as an 'unjustified increase' in cement prices

C Shekar Reddy, National president CREDAI and chairman of JAC said the housing sector accounts for 64 per cent of the total cement demand in India.

'We cannot be cornered by the cartel of cement manufacturers with a steep hike of approximately Rs 100/ bag (50 Kg) without any changes in the input cost, demand or government taxes.

We vehemently oppose this unilateral move by the cement manufacturers and all the members of CREDAI AP and CREDAI Telangana, APREDA, TREDA, BAI and TBF will take strong steps and oppose the action. We urge the cement manufacturers to roll back the hike in price immediately'.