AP’s Real Estate sector seeks CM’s intervention

construction activity

One of the state’s most crucial sectors for growth and employment, the real estate sector is seeking the state government’s much needed attention and help to assist them through this pandemic. 

Apart from labour absenteeism, sporadic availability of necessary materials has put the sector in a challenging and unviable position. 

‘The real estate industry is facing a tough situation in our state and I sincerely request our CM to help us out’ said Mr P Koteswara Rao, Chairman of CREDAI, Visakhapatnam speaking to Vizag Industrial Scan. 

Two of the main materials needed in the construction sector i.e. Sand and cement still seem to be playing havoc in the industry. 

‘Cement prices and non-availability of sand continue to be an area of major concern to our industry’ said the Chairman, CREDAI, Vizag chapter. 

“Cement companies have formed a cartel. If these companies can supply to government projects at Rs 235/bag why are they demanding Rs 350-400/bag from private builders.” 

                                                                            – Mr. Peela Koteswara Rao,ChairmanCREDAI,Vizag 

 Mr Koteswara Rao informed that due to poor implementation of the sand allotment system the industry has been facing hardship. 

‘While the price fixed by the government at the stock point is Rs 375 a ton it is being sold at Rs 1600-2000 in the black market. And due to limitations in the sand allotment system builders are having to source from the black market making projects unviable’ said Mr Koteswara Rao. 

Similarly he said that cement prices have not dropped despite the fact that construction is marginally happening. 

‘Cement companies have formed a cartel. If these cement companies can supply to government projects at Rs 235/bag why are they demanding Rs 350-400/bag from the private builders. I appeal to the CM to intervene and get this malpractice stopped’ said the chairman, CREDAI, Vizag chapter. 

And in order to give the real estate sector a much needed boost the association has requested the state government to reduce registration charges from the current 7.5% to 2%. This they opine will spur growth and help builders unload surplus inventory. 

 

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