“There is a cartelisation in cement and steel industries,” National Real Estate Development Council (Naredco) Senior Vice President Pradeep Jain said, when asked whether the industry body subscribe to the government’s views.

“Steel manufacturers have short supplied by making a cartel,” Mr Jain, who is also the Chairman of real estate firm Parsvnath Developers, alleged.

The statement comes close on the heels of Finance Minister P Chidambaram’s remark in Parliament that steel and cement companies were behaving like a cartel.

Increased prices

Naredco is a real estate development and promotion council under the aegis of ministry of housing and urban poverty alleviation. Naredco President Rohtas Goel said the sharp rise in the prices of steel and cement have increased the construction cost by Rs 230 per sq ft.

 Mr Goel, who heads the real estate firm Omaxe, regretted that iron ore — the key input for steel manufacturing — is still being exported.

“Increase in the cost of land, steel and cement has made the housing unaffordable for middle and lower middle class,” he added. Meanwhile Mr Jain said that the developers have started negotiating for import of steel and cement.

Asked whether the industry was witnessing any slowdown due to high interest and inflation, he said, “There is no slowdown. I do not think there is any softening of prices.”

Softening of prices is next to impossible as input cost, interest rate and land prices have increased substantially, Mr Jain added.

Meanwhile, Bajaj Auto chairman Rahul Bajaj, on Saturday, said the government should not act toward controlling steel prices.

“I don’t want government intervention even though I (Bajaj Auto) consume steel... I don’t want Mr Ram Vilas Paswan or Mr Chidamabaram to determine steel prices,” Bajaj told reporters here.

On the alleged cartelisation among steel producers, he said “I don’t have any proof of cartelisation. However, market forces will determine prices till there is a shortage”.