Date:05/04/2005 URL: http://www.thehindubusinessline.com/2005/04/05/stories/2005040502310200.htm

Back Rising steel, cement prices cause worries to builders

Our Correspondent

Madurai , April 4

THE State Unit of the Builders Association of India (BAI) has appealed to the Central and State Governments to take effective steps to arrest the rising cost of construction materials, especially steel and cement.

According to the State Chairman of BAI, Mr A. Pugazhendi, the rise in prices and tax levies has affected the construction industry. The increase in the price of cement, for no apparent reason, has jolted major contractors. Further, the insistence on the minimum wages for labour with provident fund payments, restrictions on transportation of surplus materials from one site to other, the increase in petroleum products are also causing concern to the industry.

The "non-responsive" attitude of the Centre and the State to the graving situation is perplexing. These apart, the levy of service tax and the confusion over value added tax regime are adding to the agony.

The Centre should reconsider the levy of service tax and at least reduce it by 50 per cent, he said, while speaking at Tiruchi recently.