Union Minister for Road Transport and Highways Nitin Gadkari on February 21 called upon the Indian Road Congress (IRC) to find alternatives to cement and steel in road construction.
He also said the time had come to "punish the cartels" who were driving up the prices.
The prices of both cement and steel are being raised "artificially" by a "sophisticated cartel", Times of India quoted Gadkari as saying at a convention organised by the IRC in New Delhi.
"We need to take some innovative actions to stop them from doing this. I suggest you take steps to reduce the use of cement and steel in road construction," the minister said
The contractors, government agencies and the poor are being adversely affected due to the exorbitant rise in steel and cement prices, he added.
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Gadkari, at the IRC convention, also claimed that he was recently presented with a plan to use synthetic fibre for road, bridge construction and for repair works by Reliance Industries.
It was conveyed to Reliance that a "rate contract" would be inked before approving their proposed material for use in road construction and repair works.
"I told them it’s not good that they will increase the price after we give approval," the newspaper quoted him as further saying.
The steel prices, which ideally hovered around Rs 37,000 per tonne, have soared to up to Rs 60,000 few months ago. Cumulatively, the rates have shot up by more than 45 percent since June 2020.
The Builders Association of India (BAI), which called a strike on February 12 against rising prices, said the rate has been increased from Rs 280 a bag to Rs 420, forcing them to stop many of their projects.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
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