KGCA urges govt to constitute CRC to fix price of cement

KGCA urges govt to constitute CRC to fix price of cement

Agency News

Kannur, Feb 4: Kerala Government Contractors Association (KGCA) has said that the frequent price hike of raw materials has been giving them a difficult time in construction works related to Nava Kerala Srishti (Rebuild Kerala).

KGCA State president Vargheese Kannabally urged the government to constitute a Cement Regulatory Committee (CRC) to fix the price of cement in Kerala, in tune with its manufacturing cost.

The price of the raw materials including cement is raising frequently thus giving a difficult time over the completion of work under the Rebuild Kerala project, he said. The cement companies create scarcity to hike price of cement, he alleged.

At present the price of one bag of cement in Kerala is Rs 425 and this would be increased after March, following the charging of additional one per cent Cess. At the same time the construction companies are getting one bag below Rs 150 per bag , following the "Annual Rate Contract" system with the cement companies.

Before the GST calculation, the tax of cement was 31 percent including VAT and Excise Duty. But after the GST came into being, the tax has been reduced to 28 per cent. However, cement companies has been unnecessarily increasing its price, creating false demand, he alleged.

Mr Varghese said the prices of other raw materials like tar, pipes, quarry, crusher products and Electrical products are also increasing without any justification. The Government should compensate according to the escalation price of products. Otherwise the KGCA will compel to stop the construction works, he warned.

The agitation methods will be chalked out in the February 6 meeting of KGCA at Thiruvanthapuram, Mr Vargheese added.

The association will submit a memorandum to the Chief Minister and concerned Ministers on the issue on February 7 (UNI)