The Joint Action Committee (JAC) of builders in Telangana and Andhra Pradesh, represented by The Confederation of Real Estate Developers’ Associations of India (CREDAI) along with other associations, have decided to extend the cement purchase holiday by a week from July 19 to July 26.
The JAC, representing the 2,000-strong developers’ community along with 1,000 small, medium and mega contractors in Telangana and Andhra Pradesh, including the Andhra Pradesh Real Estate Developers' Association (APREDA), the Telangana Real Estate Developers' Association (TREDA), the Builders’ Association of India (BAI), and the Telangana Builders’ Federation (TBF), have joined the boycott for the third week in protest against the steep cement price hike in the past few weeks. Cement prices have shot up by about 50 per cent from about Rs 200 to Rs 300, and builders have alleged that this was due to cartelisation.
With this decision the JAC boycott has entered its third week.
In the wake of the development, the Telangana Government has initiated discussions with the JAC and the Cement Manufacturers’ Association (CMA) to resolve the issue. Further, the Government has promised to relook cement prices and assured of a positive outcome.
As discussions between the Telangana Government and CMA are still in progress, JAC has decided to extend the Cement Purchase Holiday by a week.
The JAC expects the ongoing dialogue will yield a positive outcome in terms of a reduction in cement prices, which is essential to safeguard the interests of individuals and the construction industry, the second largest employer having significant multiplier effect on the economy.
The movement, which started against the unwarranted price hike and against alleged cartelisation by the cement manufacturers, has now entered its third week.
Last month cement manufacturers increased cement prices across the southern States. This forced the struggling real estate community to condemn the move and boycott purchase.
The JAC in a statement said it stands united in its demand that cement manufacturers roll back the steep hike to a justifiable increase in prices.
It maintained that such unreasonable price increases would affect the common man and act as a roadblock to the development of the country.