All India Association of Engineering Construction Contractors (AIAECC) has urged the government to set up regulatory authority for monitoring steel prices in the country.
The association has around 9,000 direct members from across the country involving more than 90 centers including 30,000 indirect members falling under the various regional contractors affiliated to the Builders? Association of India (BAI).
?The domestic engineering construction industry which has shown phenomenal growth over the last couple of years contributing significantly to economic improvement is being badly hit by the spiraling prices of major inputs like steel and cement,? said Mahesh Mudda, chairman of the Association.
He cited the case of steel prices rising by as much as 50% from January this year even as cement prices have been steadily increasing to a high of Rs 250 per bag. This has naturally resulted in big losses for the industry.
?We have also urged that the government should put ban on futures trading in steel and also ban exports of steel products as prices have gone up substantially in recent time,? he said.
Steel prices have increased from Rs 36,000 to Rs 52,000 per tonne while cement prices across the country also increased by Rs 7-8 per bag to Rs 250 per bag (each of 50 kg) in last few days. The assn also suggested government to allow duty-free imports of steel bars to increase supplies.
During XIth Plan (2007-2012) about 8% of GDP is to be spent on infrastructure if economy has to sustain growth rate. Construction is a chosen vehicle to bring about this transformation.