Steel prices shoot through roof: Rs. 14k crore worth NHAI projects in TN hit.

The alarming rise of steel prices in the last 45 days, in all likelihood, will hit around Rs. 14,410 crore worth National Highway Authority of India (NHAI) projects in the State, in addition to major State government and residential projects.

The TMT steel prices have increased by nearly 25 per cent in last 45 days. This has resulted in increased cost-estimation for construction projects. Highway activities underway have been severely hit by the escalated prices and delayed delivery of TMT steel.

Now, the project targets set by the Ministry of Road Transport & Highways (MORTH) may not be achieved, said Builders Association of India state treasurer S Ramaprabhu. “The construction costs of residential projects have shot up by around 10 per cent,” he added.

NHAI Regional Officer (Tamil Nadu and Puducherry) Pawan Kumar told Express that there has been a shortage in supply of steel at construction sites. “We have a provision to deal with price escalation. This might help compensate for the price hike,” he added.

Some of the NHAI projects, likely to be hit, include the six laning of 33 km Chennai -Tada section of NH-5 at a cost of Rs. 295 crore, six-laning of Sriperumbudur -Karaipettai (EPC) at a cost of Rs. 777 crore and four- laning of TN/Kerala border - Villukuri section in NH 47.

THE NEW INDIAN EXPRESS