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Construction costs in Haryana may escalate

india Updated: May 03, 2010 01:10 IST
Sanjeev K Ahuja
Sanjeev K Ahuja
Hindustan Times
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The cost of constructing a house in Gurgaon and other Haryana towns may well escalate.

The Haryana government has hiked the license renewal fee for brick kiln owners by 20 per cent, with effect from Oct 1, 2009, resulting in rise in the price of bricks, leading to increase in construction costs.

This would come as an additional blow to those who are either constructing their houses or planning to start construction, as prices of building materials, including bricks have already gone up by 55-60 percent during the last 12 months.

The selling price of 5000-bricks has already gone up by Rs. 1000 since April last year.

Anup Sharma, who is constructing a house in DLF City lamented that the cost of bricks, cement, aggregate, stone dust and steel had shot up by 50-60 percent during the last one year.

“Another increase in the cost of bricks would throw my budget out of gear. A truck loaded with 5000 bricks would cost me Rs. 1900 in April 2009. I purchased the same number of bricks for Rs. 2900 this month,” said Sharma.

“Likewise, the cost of aggregate and stone dust has already gone up from Rs. 18 per sq foot to Rs. 28 in the past one year. Already, I have incurred huge expenditure on building material because of the steep price hike,” he added.

Brick kiln owners have said that the cost of producing bricks has multiplied due to hike in input cost such as those incurred on labourers.

“These days, labourers are not available cheap because of short supply. This has added to the cost of bricks,” said Manoj Yadav, a brick kiln owner.

“Another hike in the lumpsum tax to the tune of 20 percent would work against the brick kiln industry,” he added.

Dharmendra Bhandari, managing director, Bestech Group said steep escalation in the cost of building materials during the last one year had forced his company to begin looking for alternates.

“Since we have sold apartments which were free from cost escalation condition, we cannot charge the same from customers. Instead, we went for alternate material, such as bricks made of fly ash which were cheaper but not at par in quality,” Bhandari said.

“Unfortunately, the cost of even such alternates is now increasing,” he added.