Construction costs across Odisha are set to spike, with materials like crushed stone, metal chips, and crusher dust projected to become five to six times more expensive due to recent policy changes, according to reports from Odisha TV.
The crisis stems from Odisha Mining Corporation’s (OMC) revised hill auction framework in Khordha district, which has levied a new base rate of ₹500 per cubic meter—nearly triple the previous ₹170—prompting potential shutdowns of around 367 crusher units. Industry groups such as the Hill Action Committee and regional Crusher Association warn the surge will ripple across the cost structure, severely impacting both public and private construction projects.
Builders and developers are bracing for immediate cost escalation, with thousands of laborers expected to be affected by the potential cessation of mining and crushing operations. The implications go beyond pricing—from disrupted timelines to a halt in small- and large-scale infrastructure work.
Though the state Mines Minister has acknowledged the emergency and pledged a forthcoming Standard Operating Procedure (SOP), stakeholders say delays in implementation may compound the strain.
As the policy unfolds, construction firms are being forced to reassess budgets, renegotiate contracts, or delay project launches—all while India’s overall housing and infrastructure momentum adds pressure to an already fragile sector.
