INDORE: Aftereffects of the deadly Petlawad blasts have led to a hike in prices of construction material putting in a negative effect on the real estate sector.
Prices of the crushed stones (gitti) have increased by almost Rs 150 per cubic metre, which is ultimately leading to an increase of 5-6 per cent in the cost of real estate projects.
In Indore district, everyday around 100 trucks bring in crushed stones from over 100 mines. "With rise in prices of crushed stones, real estate projects have become dearer. If a project is worth Rs 20 lakh, then the price is going up by Rs 1 lakh. For smaller and individual projects, the effect is not seen. But in bigger projects where construction of bridges and big buildings are taking place, the impact is huge," said Avinash Agrawal, director, Oyster Greenmount City.
However, district administration has issued licenses for some mines which are allowed to carry out blasts. Treasurer of Madhya Pradesh stone crushers industry association Haritpal Singh Hora said, "For the past one month, no blasting took place which affected the market and has led to an increase in price. Though for last three days, licenses have been issued to six mines but it is difficult to cater to the needs of the consumer base."
Earlier, crushed stones were supplied at a rate of Rs 700 per cubic metre which has now gone upto Rs 800-850 cubic metre. "There is still scarcity in the market and the prices will continue to soar for the time being, till the time all the mines are allowed to carry out blasts and they are issued licenses," he added.
The real estate sector, which is already facing a slowdown, increase in prices of construction material has further worsened the situation. "Real estate sector is going through tough times and the increase in prices of construction material has certainly affected the market," said Sandeep Shrivastav, chairman, Confederation of Real Estate Developers' Associations of India (CREDAI), Madhya Pradesh.