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This is an archive article published on December 21, 2010

Builders ask Punjab govt to form construction material regulator

After a hike in prices of sand,now it seems that a prices of crusher and coarse sand will also be increased in the coming days.

After a hike in prices of sand,now it seems that a prices of crusher and coarse sand will also be increased in the coming days. This has been indicated by nearly 60 top builders of Punjab who recently had an urgent meeting at Ludhiana.

The builders stated that they are getting calls from their suppliers to start hoarding of crusher and coarse sand because a union is being made in Pathankot to carry out a sudden hike in prices. Crusher and coarse sand are found in the hilly areas of Pathankot and are available at Rs 15 per cubic feet (CFT) at the moment.

Ludhiana Builders’ Association Press Secretary Ajit Singh,who is the owner of Creative Hi-tech,a construction company doing works in Ludhiana,Jalandhar,Hoshiarpur and Amritsar cities,said,“All my suppliers are telling me to start hoarding but how much can I hoard? They have given signals to increase prices after their union decides on one rate.”

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Association Patron S S Mavi,another builder undertaking various works in Punjab,said,“Earlier we suffered a lot because of a cartel in steel and later in cement prices. A few months ago,even the sand mafia was active due to which prices of sand have increased from Rs 10 per CFT to Rs 22 per CFT. Now after the new auction of sandmines,the prices have again come down to Rs 10 per CFT.”

At the same time,the builders have alleged that a cartel is operating in the bricks business as well,which is why prices of bricks which were Rs 2,700-2,800 per thousand bricks are now in the range of Rs 4,200-Rs 4,500 per thousand. Association President H S Virdi said,“No hike in raw material prices has occurred but the big industrial houses have still announced this exorbitant price hike.”

It was revealed by the builders of Ferozepur,Moga and Bathinda that bricks in their districts are available at Rs 3,200-Rs 3,300 per thousand but in Ludhiana,Jalandhar and Amritsar,higher rates have been set. The builders alleged that trucks of brick kiln owners from Moga,Bathinda etc are not allowed to enter these districts and,hence,they are forced to purchase bricks at higher rates.

The builders have,however,asked the state government to set up a regulatory body to fix the prices of construction material as prices are going out of reach and construction projects are becoming non-profitable ventures. The builders have indicated to the state government the alerts being given to them by the coarse sand and crusher suppliers and have asked the state authorities to intervene.

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However,Ludhiana Brick Kiln Association General Secretary S S Jawanda denied the builders’ claims. “We are not getting labour and many have slapped fictitious cases under the Bonded Labour Act on us. So we are in deep trouble,” he said.

“Kiln owners are ready to surrender their licenses in the given conditions. Because of the ongoing labour-related problems,we have not been able to carry out the desired production and,hence,rates have been hiked,” Jawanda added. “Looking at our problems,even the DC rate of bricks for government projects has recently been hiked from Rs 2,700 per thousand to Rs 3,400 per thousand,” he pointed out.

Noting that there is no ban on getting bricks from other cities,Jawanda said that the builders are lying.

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