CHENNAI: Private sector urban development activities in Chennai metropolis have suddenly slowed down.

A shortage of almost all crucial materials required for construction of buildings, roads, bridges and other infrastructure is leading to major delays in the development activities, industry insiders lament.

Enquiries show that there is a sudden shortage of blue metal, brick, cement, and even steel. This has led to marginal increase in the price of these commodities, especially steel, cement and brick, though a section of builders say that the price rise is not so much in cement.

They feel it is due to increased developmental activities in nearby States from where cement stocks are sourced by traders here.

Dwindling supply

According to Builders Association of India's Chennai centre chairman L. Moorthy the past week saw a sudden dwindling of supplies in cement and the price of each bag (of 50 kg bought in bulk) has gone up by about Rs.15 (from Rs.145 to Rs.160).

He says even steel prices have gone up, an indicator of the demand being more than the supply.

The purchase manager of a major construction consortium says that till the recent past cement manufacturers were chasing buyers, but today the situation has reversed.

"We are getting cement at Rs.160 a bag and that too we are being asked to pay in advance... "

However, another big builder, who is involved in construction of large number of Information Technology projects does not agree.

His concern is about the shortage of blue metal, sand and steel. Because of this, ready mix concrete is in relatively short supply.

Schedules hit

Some builders say that the steel, especially that is produced in the public sector companies, is getting diverted to major government projects, which are rushing to complete certain schedules by March 31.

"This is certainly affecting our schedules. Sand prices have gone up by Rs. 5-9 per cubic feet. Brick prices have gone up, perhaps due to two months of rain last year affecting brick kilns. Construction sand too is short for the same reason. Unless more quarries are ordered for these material as well as for blue metal, the demand cannot be met due to huge development activity on in the city, especially in suburbs," says another leading builder of IT projects.

He notes that steel prices have gone up by Rs. 3,500 or more a tonne in the past four or five weeks.

The builder says that due to the short supply, he is unable to meet schedules.

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