Cement price hike to hit Modi’s affordable housing?
Indian Prime Minister Narendra Modi’s 'Housing for All’ scheme could be impacted by the steep hike in cement prices, the Confederation of Real Estate Developers’ Association of India (CREDAI) argues.
According to a report in the Times of India, cement prices have risen from INR250/50kg bag to INR300/bag in the past two months. Developers in Kolkata have also reportedly been informed that the price will be hiked further to INR350 before June. If this is the case, it will raise construction costs by INR50/ft2, the article mentioned.
“We will have no option but pass the hike to consumers though we know that it will pinch them hard because some have scraped their entire saving to buy the house,” Nandu Belani, president of the Bengal chapter of CREDAI, told the daily.
Developers are concerned that the increases may derail several projects lined up for launch under the government’s affordable housing scheme which Modi had announced in his New Year’s Eve address to the nation and was reiterated by Finance Minister, Arun Jaitley, in this year’s Budget.
CREDAI on Friday accused cement companies of profiteering and said the firms had no reason to go for the steep hike at a time when the housing industry and banks were working towards meeting the government’s goal of 'Housing for All’ by 2022. CREDAI National Vice-President, Sushil Mohta, alleged cement companies had formed a cartel to increase prices.
