Construction Projects in Tamil Nadu Hit by Sharp Rise in Material Prices

A crucial crisis in the construction industry is hitting Tamil Nadu following a steep increase in the price of basic building materials such as aggregates Jalli Stone and M-Sand. Such a surge has also delayed the completion of government projects worth ₹5,000 crores.

The complaint was lodged by the State President of the Indian Knitwear Association, Palani Vel, in conjunction with Viswanathan, the all-India President, and the President of the Namakkal Centre, Thennarasu. In an interview, they said the cost of construction materials had doubled, putting significant strain on projects that were already in progress.

Rising Cost of Key Materials

A unit of three-quarter jelly was priced at ₹3,000 on February 1. The unfortunate truth is that the current price has surged to ₹6,000 a unit. Likewise, M-Sand which previously cost ₹4,000 per unit has now doubled to ₹8,000. This unprecedented jump has turned out to be a costly affair for the government contractors and many of them have suspended construction works, especially in Thanjavur and Pudukottai districts.

Government Projects at Risk

Various government projects have a time limit up to the end of March and no contractors can move ahead on these projects owing to pocket pinching costs. If the situation continues, Tamil Nadu could incur major losses in the process of becoming a key producer of employment through the sector and accelerate its progress in terms of infrastructure development, state experts have warned.

Appeal to the Government

The crisis has prompted industry leaders to appeal to Chief Minister M.K. Stalin to resolve the issue. Permit extraction of river sand, B-Sand. Similarly, they have to pay sand tax on the sand they extract for their work as a ‘temporary fee’; however, the tax should be based on the area where it is dug up. Immediate action is needed to avoid more project delays and losses to the state.

As construction work has ground to a halt in many areas, demand for a government response has escalated. Contractors and industry officials hope price controls and other measures will be implemented quickly to unstick stalled projects.