Increase in cement price hits realty sector in Amaravati

Amaravati: Hiked price of cement and shortage of stocks hitting construction and realty sector. The Temporary Secretariat Government Interim Complex works were on a brisk pace to open it for full functioning in a few days.

The realtors, promoters, builders and individuals, hoping for an increase in demand for space, have started construction of apartments and houses anticipating government employees would shift in large numbers to the region.

But the increase of cement price to Rs 1300 per bag from earlier Rs 230 is putting extra financial burden and shortage of cement became hurdle for the completion of constructions. Nearly 3,500 various types of constructions are under progress in Amaravati Capital Region and Guntur city and cement shortage and price hike is troubling them.

Already, the government departments had taken various private buildings for their offices in Guntur city and some employees have taken individual flats and houses. Initially, the government is expecting shifting of nearly 12,000 employees in a phased manner to Guntur, Velagapudi and Vijayawada.

J. Ramesh, who was constructing a house, said that he was constructing four portions to give them on rent making good use of the demand due to shifting of the employees, but the shortage of cement supply and increase of price by Rs 70 to Rs 100 per bag is delaying the construction.

He said that like him, several others planned to rent their spaces by September and alleged that cement companies are adopting unethical practices and creating shortage, which is affecting construction.

He asked the government to interfere and initiate actions to control the price and increase supply according to the demand.  

Promoters, Y. Sudhakar and others lamented that nearly 1,000 apartments in and around Guntur city were under construction but the sudden increase of cement price putting extra burden on them.