The Confederation of Real Estate Developers' Associations of India (Credai), Andhra Pradesh, has welcomed the goods and services tax (GST) cut effected by the GST council on housing projects and thanked the Centre for it, but condemned the "huge hike in cement prices" ranging from Rs 120 to Rs 130 per bag. It urged the state government to initiate immediate steps to bring cement prices under check in the interests of the common consumers as well as the builders.

At a media conference here on Tuesday, K Subba Raju, the chairman of the Credai (AP), thanked the GST Council and the Union Government for reducing GST on affordable housing projects to one per cent and on all other housing projects to 5 per cent without any input tax credit. "Our long-pending demand has been conceded and we thank the GST council and the Union Government for it. It will give a huge fillip to the sector and great relief to the ordinary middle-class house buyers," he said.

Cement prices

However, he said there was a steep surge in cement prices of late in the State, before the summer, and it was not at all justified. He accused the companies of forming into cartels and pushing up the prices from Rs 230 a bag to Rs 320-350 per bag. "Last year, too, the companies played the same foul trick and a penalty of Rs 6,700 crores was levied on the companies, which matter is still pending in the courts, and they are up to it again," he alleged.

He said that the companies are not in a position to offer any explanation for the abnormal spurt in prices. The power situation in the State is comfortable and there is no hike in power tariff. The prices of raw materials are holding steady and there is no wage hike. In fact, there are no other discernible causes for the hike. It is nothing but naked greed on display.

He also referred to the high vacant land tax in the state, the high building fees, and related issues and expressed the hope that the state government would resolve the issues and encourage the sector.

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