Guntur: The construction sector has slid into a slump in Amaravati. The abnormal increase in cement prices has put a huge extra burden on constructions, forcing owners, developers and builders to think twice about completing construction.
Nearly 6,000 structures of various types like individual houses, apartments and complexes are under construction in Amaravati Capital Region. The construction activity gained momentum after the AP Secretariat, AP Legislative Assembly and Council in Amaravati shifted to at Velagapudi.
Entrepreneurs, promoters, realtors and builders had pinned their hopes on the development of realty and looked forward to a boom in the construction sector.
However, the sudden, sharp spike in cement prices effectively destroyed their hopes. It’s the same with the people of Guntur district, who are facing financial difficulties. They too are demanding a rollback in cement prices.
Besides cement price hike, the increase in price of steel to Rs 42,000 to Rs 45,000 per tonne (depending on quality) is a matter of concern. Many new constructions were started in Undavalli, Penumaka, Mandadam, Velagapudi, Ainavolu and adjacent areas around the Secretariat and Assembly in March and April, but these work on these projects has ground to a halt due to the rise in prices of cement and steel.
The APCRDA’s incentives, to boost construction activity in the AP Capital Region, had attracted the public, builders, developers and realtors, with many new projects being announced.
A developer, S. Srinivasa Rao, said that new constructions were expected to start in April, May, June and July, due to availability of finances and funds to farmers, traders and employees.
But this year they are not showing any interest in taking up construction activity, deterred by the increase in cement and steel prices. Mr Rao said that initially, the starting of the Secretariat and conducting of the Assembly session brought spurred activity in the Capital Region, but this lasted only for a few days as the high cement prices played spoilsport.
