HYDERABAD: Builders and contractors are on a warpath. They have resolved to stop work on the ongoing Rajiv Gruhakalpa, a scheme meant for building houses for the urban poor across the State, from Thursday, demanding enhancement of the unit cost of flats.

However, they will continue the curing work wherever necessary.

Builders Association of India (BAI) served a strike notice on the Andhra Pradesh Housing Board (APHB) authorities on Tuesday.

Reimbursement

The Government while awarding the contracts fixed Rs. 80,000 as the price for every flat built under the scheme. However, escalation of cement and steel prices and increase in the cost of transportation of sand and several allied issues irked the builders.

Against this background, they are demanding reimbursement of the additional costs from the Government, besides enhancement of the per unit cost.

President of the State unit of the BAI S.N. Reddy said that the builders and contractors were spending Rs. 200 to Rs. 210 for every cement bag, while the per bag price was Rs. 115 at the time of estimates. Steel prices went up to Rs. 31,500 from Rs. 27,000.

While the lead given in the estimates for procuring river sand was 36 km, the builders were constrained to fetch it from Vijayawada and Karimanagar, spending Rs. 10,000 per lorry (10 cubic metres).

Cost of basic building material, including metal, bricks, stones, PVC pipes, copper wire, electrical items, window glasses, sanitary items, etc spiralled.

Due to spurt in infrastructure industry and mega projects, even the labour costs moved north, levying a heavy burden on the builders.

Cost escalation

He said that the State Government issued necessary orders -- GO NO. 233 and 175 -- to adjust the cost escalation with a view to compensating losses.

However, the APHB had not implemented them, nor had it approved the revised estimates given by builders.

Mr. Reddy said that the service tax levied by the Union Government had to be either waived for Rajiv Gruhakalpa houses or the same should be reimbursed to the contractors. But nothing had happened on that front.

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