July 25, 2008

Indian builders seek steel regulatory authority

The Hindu reported that anguished over the debilitating impact of the spurt in steel prices on the construction industry, builders have urged the union government to set up a steel regulatory authority to arrest such steep price rise in future.

Mr K Sriram president of the Builders’ Association of India addressing a press conference in Mysore said that the Government could not shrug its hands off the abnormal increase in the price of steel, which was attributed to an unholy cartel of steel manufacturers.

He said that the prices of steel, which were hovering around INR 30,000 a tonne two months ago had crossed INR 50,000 a tonne, causing concern among the builders.

He added that “The steep hike in steel prices has virtually brought vital infrastructure projects to a grinding halt. This development will lead to large scale unemployment and eventually to social problems.”

Mr Sriram said that the Government should intervene to break the cartel of steel manufacturers and immediately take steps to set up a Steel Regulatory Authority of India on the lines of Telecom Regulatory Authority of India, to regulate prices of steel in future. He added that “If these measures are not taken immediately, the construction sector along with the industrial sector will be forced to stop all work till the issue is resolved.”