The cost of one tonne of TMT bars (Thermo-Mechanically treated) used for construction of buildings was around Rs 30,000 in December last year. Within four months it has gone up to Rs 48,000 per tonne.

Sudden increase

The sudden increase in steel price has been attributed to the rise in prices of iron ore, coking coal and energy prices. Contractors who were allotted tenders in December last year as per the schedule of rates are facing difficulty in paying a heavy price for steel, prime construction material.

Karnataka State Contractors Association general secretary D Kempanna said once contractors are given work orders they can’t ask for revision of funds allocated for any work. As the price of steel had witnessed a sudden hike contractors are in deep trouble.

“The association has met secretaries of Public Works department and Finance Department to take necessary action to address the problem of contractors. The government should give the difference amount. Otherwise it would be difficult to complete the works allotted”, he said.

Builders also affected

The state of builders is no different. Hike in steel prices has resulted in progress of construction of mega structures, said D V Raghu, general secretary, Greater Bangalore Builders’ Association.

“Many builders have taken up construction of private buildings as per rates that existed last December. Nobody expected that the price of steel would go up like this. But now they are in great difficulty.

They are not in a position to cope up with the present price. Moreover it has been difficult to convince owners about necessity of more funds to complete works already taken”, he said.

He demanded that the Central government should take up the issue and hold consultations with steel companies to bring down the prices.