CREDAI, TREDA, BAI, Telangana Builders Federation& Telangana Developers Associationcomes together to form Joint Action Committee (JAC) to urge Cement Manufactures to take immediate action and roll back the hike in Cement Prices
Hyderabad 17th April 2017: The Confederation of Real Estate Developers’ Associations of India (CREDAI) along with all its chaptersin association with Telangana Real Estate Developers' Association (TREDA), Builders Association of India (BAI), Telangana Builders Federation(TBF) and Telangana Developers Association (TDA) have come together to form a Joint Action Committee (JAC) to oppose the unjustified and steep hike in the cement prices by the cement manufacturers with no increase in the prices of the raw material. The JAC which is represented by more than 600 strong Developers community and more 1000 small, medium and mega contractors unanimously demanded the cement manufacturers to roll back the unjustified steep hike in cement prices immediately.This unprecedented move will act as a negative catalyst and will increase home prices and impact the delivery to home buyers.
Andhra Pradesh & Telangana with 20 manufacturers of cement contribute about 26% of the total installed cement capacity of the country. Annual consumption of cement in Telangana and AP is approx. 22-24 million tonnes. Sales dispatches for March 2017 were approx. 2.15 million tonnes. The present political and economic scenario and the steady demand for cementdoes not warrant the need for such hike in price of cement. This price hike will create extra burden on consumers who will have to bear the burden of heightened costs and escalations and delays in construction and deliverability of housing schemes and projects .
Speaking at the occasion Mr. S Ram Reddy, President CREDAI Hyderabad & Chairman JAC said“The Housing sector accounts for a significant consumption of the total cement demand in India. We cannot be cornered by the cartel of cement manufacturers with a steep hike of approximately 60% without any changes in the input cost,demand or government taxes. We vehemently oppose this unilateral move by the cement manufacturers and all the members of CREDAI Hyderabad and CREDAI Telangana, TREDA, BAI, TDA and TBF will take strong steps and oppose the action. We demand the cement manufacturers to roll backthe hike in price immediately and the Government of Telangana State to intervene to influence the roll back in cement prices”.
Mr. G Ram Reddy, President CREDAI Telangana & Convener JAC explained further that “The focus of the developers in the region is on affordable housing. The steep increase in the price of cement in Telangana State will add to the cost of housing and thereby increasing the burden on all stakeholders. Considering the current low prices for property, this increased cost will create negative growth and escalate artificial pricing. To avoid such a situation, we are insisting on an immediate roll back of the price hike.”
Adding to this Mr. P Ramakrishna Rao, General-Secretary CREDAI Hyderabad&Gen. Secretary JAC said that “The move by the cement manufacturers to increase the price of cement in Telangana by approximately 60% is unjustified as there is no change in taxes or any significant increase in the cost of inputs for cement. Moreover the states of Telangana & AP arerich in Limestone and mica deposits providing the cement manufacturers a strategic advantage and cost benefit. So far both the states had an advantage over the other states in India in terms of cost. In Telangana state there is no increase in power tariff , thereby offering no justified reason for the sudden price hike. We demand an immediate roll back of price hike for cement in Telangana Stateand urge the Governmentto intervene and resolve the issue.”
Sri P. Ravinder Rao, President, TREDA and co-convener JAC added “The developers and builders in Telangana are committed to provide affordable housing. The hike in cement prices will have anegative multiplier effect on the economy. All the real estate players strongly oppose this decision and urgethe governments at the centre and the state to take immediate steps for intervention.”
Mr. G V Rao, President-Telangana Developers Association & co-convener JAC added that “We have a task to support the Government in the mission to provide housing for all in the state of Telangana; such unprecedented hike in cost of cements will hamper the process and add to the costs”
Mr. C. Prabhakar Rao, President-Telangana Builders Federation(TBF) & co-convener JAC added that “ This unexplained hike in cost of cement which is the basic raw material required in all constructions will have a significant impact in derailing the plans and add to the costs. We request the Government at centre and state to stop the cartelization by cement manufacturers and rationalize the price for cement.”
Adding to this Mr.S. N. Reddy,Vice President,BAI and co-convener JAC said “The move by the cement manufacturers in Telangana is most unfortunate as they get the benefits of the government policies but are using the need for rapid infrastructure development for their vested interests by increasing the price for cement.“
The Joint action Committee representing almost 600 developers and 1000 small, medium and mega contractorsfrom Telangana State reiterated that it is determined to take the cement price hike head on and will take all appropriate measures to ensure that the cartelization is broken. JAC has vowed to bring an end to monopolistic practices initiated by the cement manufacturers association.
Photo Caption: From Left to Right
01. Mr. P Ramakrishna Rao, General-Secretary CREDAI Hyderabad & Gen. Secretary JAC
02. Mr. S. N. Reddy,Vice President,BAI and co-convener JAC
03. Mr. S Ram Reddy, President CREDAI Hyderabad & Chairman JAC
04. Mr. G Ram Reddy, President CREDAI Telangana & Convener JAC
05. Sri. P. Ravinder Rao, President, TREDA and co-convener JAC
06. Mr. G V Rao, President-Telangana Developers Association & co-convener JAC
07. Mr. Venkat Reddy, General Secretary, Telangana Builders Federation(TBF) & co-convener JAC