Construction industry hit due to raw material shortage: Builders' association
He added that the crisis not only affects ongoing government contracts but also hampers housing projects, which are mandated to be completed and handed over on time as per the RERA norms.
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CHENNAI: While pointing out that the construction industry is facing challenges due to shortage of construction materials, Builders' Association India (BAI) has urged the state government to reconsider the recent increase in building plan approval charges and infrastructure charges.
"Presently, the production of critical raw materials such as sand, blue Metal, M-Sand, bricks and cement has come to a standstill, leading to a complete halt in construction activities across the State. Regulatory constraints have caused prices to double, worsening the situation and making it difficult for construction projects to proceed as planned, " M Ayyappan, state chairman of the Association said.
He added that the crisis not only affects ongoing government contracts but also hampers housing projects, which are mandated to be completed and handed over on time as per the RERA norms.
"The Government price for Cement is Rs.320 per bag. However, in local shops, the price has surged to Rs.440 raising prices Rs. 100 to 120 per bag without any justifiable reason. Additionally, the unavailability of river sand from Government quarries due to regulatory raids has further aggravated the situation, " he pointed out.
The crackdown by the Department of Geology and Mining on blue Metal and M-sand production has led to a reduction in supply and a subsequent increase in prices. The scarcity of bricks has similarly led to a significant price hike making it increasingly challenging for construction projects to proceed, he said.
While saying that the crisis is impacting the livelihood of workers, especially during the festive season, the Association requested the government to streamline the building permit issuance process in the single window system to avoid excessive delays and a timeline of 30 days in issuing building permission be considered.
"We also urge the Government to reconsider the recent increase in building plan approval fee and infrastructure changes which were increased by 100% to alleviate the burden on the public and the construction industry, " he urged.