"The construction industry has been picking up after a recession for about two years but this kind of increase will affect them," he said, adding that big projects worth Rs 1,00,000 crore - like the Narmada Dam and national highways - are in progress.

The MCHI - supported by prominent builders and developers in Mumbai - were unanimous that the Centre should withdraw the countervailing guarantee to cement manufacturers to protect them against dumping. Mr Hiranandani felt that the question of dumping does not arise as the quantity of cement imported by the industry was only to the tune of Rs 8 crore.

Mr Hiranandani, however, refused to comment on the price hike undertaken by cement manufacturers. "The market is going to determine the price of cement. I am not opposed to any price hike," said Mr Hiranandani, adding that "the cement manufacturers cannot misbehave."

Members of the industry added that a core committee would be formed to pursue with the state government, the Centre and others related bodies to initiate action against the cement manufacturers. The members voiced their concern against cartelisation of the cement manufacturers who were indulging in unscrupulous activity like scaling down the cement output in their plants by closing down all their plants for about a week in the name of maintenance shut-down.

MCHI president Rajni Ajmera said that the cement manufacturers were sending a wrong signal by creating the artificial shortage. He said that the manufacturers had cut down the production by 20 per cent and added that the builders and developers would fight against the unethical hike.

As a result, the price of cement shot up by 15 per cent to 20 per cent to Rs 170 to Rs 200 per bag in the last couple of months and he feared that it may go up further. The hike in prices due to stoppage of supply of cement to major project sites would create an additional financial burden to the developers and contractors. Federation of Associations of Maharashtra president Mohan Gurnani demanded immediate government's action under the Monopoly Restrictive Trade Practice (MRTP) against the cartel of cement manufacturers.