Construction Industry Faces Crisis as Material Costs Double in Tamil Nadu

Tamil Nadu’s construction industry is in shock after the prices of essential commodities such as M-Sand, blue metal, and P-Sand showed a sharp rise. The sharp rise has left builders reeling, with the price of building a 1,500 sq. to ₹18 lakh just for these materials for a 1,000 sq. ft house in Chennai or anywhere else in the state.

Now the Southern Lorry Owners Welfare Association has appealed to Chief Minister M.K. Stalin, warning that the crisis is crippling public and private projects. And since February, prices have jumped more than 100%, said the president of the association, R. Munirathinam.

• The price of M-Sand has increased from ₹650 per tonne to ₹1,250 per tonne.

• The price of blue metal has increased from ₹500 to ₹1,000 per tonne.

• The price of P-Sand has increased from ₹750 per tonne to ₹1,500 per tonne.

Official data says that over 90% of tipper lorries in Tamil Nadu fell out of operation after the implementation of these stringent rules. The halt has stopped major projects such as Tamil Nadu Public Works Department (PWD) buildings, Tamil Nadu Housing Board complexes, Chennai Metro Rail, expansion of the Ennore Port, and corporate and residential development. The crisis endangers the livelihoods of five million construction workers.

According to builders, the price increase started in Karur, Coimbatore, Salem, Namakkal and other western districts and spread to the southern and delta districts. Rates have gone up by at least 20% at quarries and crushers in Kancheepuram, Chengalpet, Tiruvallur, Tiruvannamalai, Ranipet, Vellore, Villupuram and Cuddalore since February.

“This is impacting ongoing projects badly,” said S. Ramprabhu, chairman of the DTCP committee at the Builders Association of India. “Government tenders have become nonviable as costs of construction have doubled, and private builders are incurring huge losses after signing agreements at older rates.

The Southern Lorry Owners Welfare Association has appealed to the government to open all closed blue metal quarries immediately and order district collectors to regulate supply. Builders have also sought a regulatory authority to regulate pricing and have called for allowing quarrying of river sand to manage costs.

Tamil Nadu’s construction sector could be in for extended stagnation with a consequent impact on employment and infrastructure development if no corrective steps are taken.