NEW DELHI: South India Cement Manufacturers Association (SICMA) has condemned the strike called by Builders Association of India (BAI) on February 12.
BAI has called the strike and will stop work for a day on February 12, citing input cost increases, including that of cement.
“South India Cement Manufacturers Association strongly condemns the same for two reasons – spreading misinformation among common public and their intent to take advantage of economic recovery and to further increase prices of real estate, which is already at unaffordable levels,” SICMA said in a statement.
It has already written to the Prime Minister and Finance Minister to look into profiteering being done by the builders.
“We believe that instead of supporting initiatives by both state and central governments to bring the economy back on the growth trajectory, BAI is trying to take advantage of the situation by citing unfounded reasons to increase the realty prices, instead of reducing it drastically and help common consumers who are looking for a roof over their head,” it said.
Across markets, builders access cement at a rate of Rs 6,000 per metric tonnes or below. This means cement constitutes only Rs 150 per sq ft of built-up area, it added.
“Amount being so low, one needs to ponder, how cement price can impact the increase in their flat construction cost? Is this not hoodwinking gullible consumers,” SICMA said.
Builders claim that the price of cement has gone up by Rs 100 a bag, when the reality is that CAGR of cement price, in the last 5 years, has remained flat.
“Is it their intent to take higher input credit of GST by giving non-genuine bills,” SICMA added.
According to SICMA, it has done a detailed costing of flat construction based on Guideline value of land in different markets.
“We see that the total cost of a flat is not even 50 per cent of their sale price. Why should the Government not intervene and ask them to reduce prices, so that consumers at large, benefit”.
SICMA is headed by N Srinivasan, vice-chairman and MD of India Cements.
Source: Press Trust of India