In a warning to the steel and cement industry, Union Micro-Small & Medium Minister (MSME) Nitin Gadkari said there are cartels in the sector that are taking advantage of the current real estate situation.
“There is a cartel in cement & steel industry. Every steel company has its own iron ore mines & there has been no increase in labour & power costs but they are increasing rates. It is difficult for me to understand (the reason behind it,” said Gadkari during an industry event on Saturday.
He further added that the government has lined up infrastructure projects worth Rs 111 lakh crore in the next 5 years but there are bottlenecks owing to rising rates of steel and cement.
“Cement factories are exploiting the situation. It’s not in national interests. We’re planning to implement infrastructure projects worth Rs 111 lakh crores in next 5 years. If rates of steel & cement continue like this, it’ll be very difficult for us,” he added.
He added that in the real estate market, the government faces maximum bottlenecks and it is seeking to find solutions. One of the proposals put forward at the meeting of the Builders’ Association of India was to create a steel and cement industry regulatory agency.
Gadkari said he would consider feedback on the matter from Prime Minister Narendra Modi and Minister of Finance Nirmala Sitharaman.
