The construction industry in Coimbatore is grappling with significant challenges due to a sharp increase in the prices of essential building materials. Over the past few months, the cost of materials such as M-sand, P-sand, and jalli has surged by approximately ₹1,000 per unit. For instance, M-sand prices have escalated from ₹4,900 to ₹6,450 per unit, P-sand from ₹5,800 to ₹7,552, and jalli from ₹3,900 to ₹5,523 .
This price hike is attributed to the introduction of a new mineral-bearing land tax by the Mines Department, levying ₹90 per tonne of rough boulder extracted from quarries. Additionally, the revision of the seigniorage fee from cubic meters to tonnes has further inflated costs, adding an extra ₹554 per unit to the price of rough boulders .
In response to these escalating costs, several industry bodies, including the Builders Association of India (Coimbatore), Coimbatore Builders and Contractors Association, and Confederation of Real Estate Developers’ Associations of India (CREDAI) – Coimbatore, have formed a Joint Action Committee (JAC). The JAC has submitted a representation to the District Collector, urging the state government to intervene and regulate the prices of construction materials to alleviate the financial burden on builders and contractors.
The ongoing price surge threatens to stall numerous construction projects, impacting both residential and commercial developments. Industry stakeholders are calling for immediate government intervention to stabilize material costs and ensure the continuity of construction activities in the region.
