The Russo-Ukraine war has pushed up construction material prices by up to 40 per cent, affecting infrastructure projects. Construction companies and contractors associated with this sector have requested Prime Minister pic.twitter.com/MTUrPcR1VY
— ANI (@ANI) August 22, 2021
Meanwhile, Prime Minister Narendra Modi and Finance Minister Nirmala Sitaranan to provide relief to the infrastructure sector. They say that if the government does not act on time, then the NPA will increase due to failure of projects.
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The Indian Buildings Congress (IBC) and the Builders Association of India (BAI), the apex bodies of the construction industry in the country, have written to the government in the past, saying that major construction raw materials, including cement, bitumen, steel, aluminum, diesel and copper, have been reported in recent months. There has been an unusually high price of goods.
Vijay Singh Verma of Indian Buildings Congress said that the cost of projects has increased due to steep rise in raw material prices. Due to which tough challenges have arisen in front of the infrastructure sector. Although the Madhya Pradesh and Gujarat governments have given some relief, but the central government will have to take positive steps in this direction.
If relief is not given on time, then companies will reach the verge of bankruptcy and there may be a risk of failure of projects. This will have a huge negative impact on the national economy. IBC’s pasty president K.K. Kapila said that there is an urgent need to give assurance package to the companies. It may be noted that BAI has around 25,000 business entities as members and 200 branches across the country.