Hyderabad: Builders-GHMC lock horns over 2BHK cost
Private builders who are executing the 2BHK housing project have locked horns with the GHMC over escalation in steel prices.;
HYDERABAD: Private builders who are executing the 2BHK housing project have locked horns with the GHMC over escalation in steel prices. They have demanded a hike in the unit cost and warned of compromise on quality.
The steel prices were hovering around Rs 30,000 per tonne in 2015 when the agreement for the 2BHK housing project was inked. The prices rose to Rs 47,000 per tonne in 2017 and is expected to reach Rs 50,000 per tonne in a week’s time. The builders said that this will result in an additional burden of Rs 500 crore to construct 1 lakh double- bedroom houses.
The unit cost set for G+3 structures is Rs 7 lakh, Rs 7.65 lakh for G+5 and Rs 7.9 lakh for G+9. Sources in the corporation said that the builders have already submitted a memorandum to K.T. Rama Rao, municipal administration and urban development minister, seeking a hike in prices of each dwelling unit.
However, the 2BHK housing project agreement has ruled out any price escalation, said a senior GHMC official. If the builders demand is met, then the corporation will have to bear an additional cost of Rs 500 crore. So, the issue has been brought to the notice of the state government and the State Housing Corporation and a decision is expected soon.
Meanwhile, the corporation has identified 481.00 acres of land in Hyderabad, Rangareddy, Medchal and Sangareddy districts to construct 2BHK houses at 109 locations.
In August, the GHMC finalised the tender for 59,520 units at 88 locations and started the work on 27,734 units at 40 places. The corporation has completed 176 2BHK units at Singam Cheruvu (Thanda) of Mallapur (M), Uppal.