Vizag Most Likely to Declare a Construction Holiday

The hike in cement prices has made the builders and the construction sector of the city go bonkers. Assessing an overall loss of around Rs 500 to Rs 600 crore, the builders are trying to consider the idea of declaring a construction holiday. However, the builders associations say that nearly 3 lakh workers would go jobless if the construction holiday is declared and are also blaming the government for being negligent to the crisis happening.

Post the demonetisation, the unusual boom in the cement prices has given a blow to the construction sector which currently contributes around 23% of District Domestic Product and also plays a significant role in the district development index. It is known that after the bifurcation of the state, Vizag has been growing rapidly as a smart city with hundreds of real estate ventures yielding turnovers in crores.

The undeniable fact is that the industry has suffered a lot after the demonetisation and the abnormal increase in the cement prices. In the last financial year, the construction industry has generated Rs 6553 crore, while the real estate has generated Rs 7421 crore. Adding to this is the new real estate ventures in rural areas like Anakapalle, Nakkapalli, Payakaraopeta along with Pendurthi, Bheemili, Narsipatnam and Chodavaram.

The city is seeing nearly 500 apartments being constructed and nearly 650 flats being constructed in Seethammadhara itself. All put together; the district has nearly 50,000 flats in different stages of construction. However the associations have said that a cartel was formed by some mega cement companies which deliberately hiked the prices of the cement.