Displaying items by tag: CREDAI

India: Construction work has yet to return to normality following the easing of the coronavirus lockdown in Uttar Pradesh as cement and other materials have not reached building sites. The Hindustan Times has reported that restrictions to the movement of goods across state and district borders have caused extensive disruption of supply chains. The website for travel permits needed by workers who do not live at the site at which they are employed has reportedly crashed multiple times due to oversubscription, leading to some staffing issues. Confederation of Real Estate Developers Association of India (CREDAI) deputy chair Uttar Pradesh West Amit Modi said, “We can only resume work once these things get back to normal."

India: The Confederation of Real Estate Developers’ Association of India (CREDAI) says that rising cement prices threaten Prime Minister Narendra Modi’s affordable residential construction scheme 'Housing for All.’ Nandu Belani, president of the Bengal chapter of CREDAI, said that his organisation had no choice but to pass rising prices on to consumers, according to the Times of India. CREDAI has also accused cement producers of ‘profiteering’ and alleged that they have formed a cartel. The developers argue that the cost of cement production has fallen following the introduction of various government subsidies.

India: The Competition Commission of India (CCI) is examining a fresh complaint of alleged unfair business practices made against cement makers, according to CCI chairman Ashok Chawala. The development comes against the backdrop of the quashing of a US$949m fine imposed on them by the regulator in a previous case.

Chawla said that the CCI is looking into a fresh complaint filed against cement companies. The Confederation of Real Estate Developer's Associations of India (CREDAI), which has about 10,000 members, approached the CCI against the Cement Manufacturers' Association (CMA) in September 2015. In October 2015, the CREDAI said that the association had filed a complaint against the CMA as prices have risen sharply despite low demand for cement.

"To control the cost of construction and make home prices work for the common man, the CREDAI has moved the CCI against cement manufacturers who have been unduly increasing the cost of cement," said the CREDAI. Despite low demand, the association had said that the prices of cement have jumped by 20 – 40% in major cities across India since October 2015.

India: The real estate developers' association Credai has moved the Competition Commission of India (CCI) against cement manufacturers that it claims have unduly increased the cost of cement. Credai has also highlighted the violation of CCI's 'cease and desist' order of 2012 by cement manufacturers, according to a statement from the industry body.

Credai said that the cost of raw materials used in cement manufacturing fell between January 2015 and September 2015, but that cement companies have not passed on the benefit to customers. Hinting at a cartel-like operation, it was also alleged that cement companies seem to be working together to control supply and prices. Housing and other real estate sectors account for nearly half of the cement demand in India. Despite low demand, cement prices have jumped by 20 – 40% in top cities across the country in the past couple of months.

"It is unfair that the cement manufacturers indulge in practices that control the prices of cement. The CCI has warned cement manufacturers in the past as well, but it is unfortunate that they seem to be continuing with their price and market manipulation," said Credai national president Getamber Anand.

At its annual general meeting in September 2015, Credai's board took the decision to stop procurement of cement from companies like UltraTech, Lafarge and others that unilaterally increased cement prices in the past month.

India: The Confederation of Real Estate Developers' Associations of India (CREDAI) has said that it plans to import cement from abroad, particularly China, in order to overcome the rising prices faced by builders and the Telangana government's decision to impose extra costs on trucks coming from the neighbouring state of Andhra Pradesh.

With trucks owners deciding to suspend their operations in protest at the move, there have been reports of cement shortages. "The cost of premium cement in the retail market is set to increase steeply, as transportation costs will shoot up with the government's decision to impose road tax on trucks from Andhra Pradesh," said CREDAI Vijayawada chapter president C Sudhakar. "To avoid this, there are plans to import cement from China."

Sudhakar estimated that the cost of importing Chinese cement could be 20 – 21% lower than getting it from Andhra Pradesh, a clear benefit to CREDAI members and local homeowners.

India: The Indian Realtors' body CREDAI has said that cement prices across India had gone up by US$0.95-1.12/bag in the week to 23 September 2013 and that it was considering an approach to the fair trade regulator Competition Commission of India (CCI) alleging a cartel between the cement producers.

CREDAI chairman Lalit Kumar Jain said that cement prices in Pune had risen by 31% in just a week. "Considering that buyer sentiment is currently low, the cement price rise defies logic," he said. "We feel that there is a cartel. We are currently taking legal advice."