Construction costs to spiral up as sand prices increase by 1,000 per unit
The association had launched an indefinite strike on April 16, urging the govt to withdraw the newly imposed
mineral-bearing land tax
. The Mines Department began levying this tax - Rs90 per tonne of rough boulder - starting April 4.
With the introduction of this tax, quarry owners are now required to pay an additional Rs700 per unit of rough boulder. In addition, the seigniorage fee was revised from cubic metres to one tonne, resulting in an additional payment of Rs554 per unit to the Mines Department, compared to the earlier Rs254.
K Chinnasamy, president, Tamil Nadu Stone Quarry, Crusher and Lorry Owners Association, said a meeting was held with water resources minister Duraimurugan and senior govt officials on Monday to discuss the new tax, seigniorage fee hike and other demands. "However, the govt refused to roll back the new tax and fee hike. Instead, the govt permitted us to increase the cost of materials. We withdraw the strike, as the govt agreed to consider 22 of our 24 demands."
Arvind Kumar, president, the district chapter of the Confederation of Real Estate Developers' Associations of India, said the price hike would affect the construction sector. "The prices of M-sand, P-sand and jalli were hiked thrice in the past six months. M-sand, which cost Rs4,900 per unit in November, now costs Rs6,450. The price of P-sand has increased from Rs5,800 to Rs7,552 per unit. Similarly, the price of jalli has gone up from Rs3,900 to Rs5,523 per unit. These steep increases will directly impact the ongoing projects and contractors by escalating overall
construction costs
."
He said they were planning to represent this issue to the govt and urge the state to regulate and control the price hike.
Coimbatore Builders and Contractors Association president Ramyaa R Senthil said the price hike over the past year was abnormal. Instead of controlling it, the state govt has allowed the increase in building material prices, he said.
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