Tuesday, January 16, 2001
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BAI stops construction work to protest against price hike; 15,000 workers hit 

Our Corporate Bureau  
Mumbai, Jan 15: All civil works in the country came to a standstill as the Builders Association of India (BAI) went ahead with its proposed indefinite stoppage of work from Monday, in protest against the alleged artificial increase in cement prices by the manufacturers.

According to BAI spokesperson Vimal Shah, "we are planning to approach the Prime Minister and appraise him of the situation."

BAI is also planning to bring out a morcha of 10,000-15,000 affected people on January 19, in Mumbai to highlight the present crisis. As regards its future course of action, the association is adopting a wait and watch approach. As Mr Shah puts it, "we are waiting for the cement companies to reply to the notice issued by the Monopolies and Restrictive Trade Practices Commission (MRTPC)."

Meanwhile, industry sources pointed out that the deadlock between the cement transporters association and cement manufacturers over higher transport rates may be resolved soon with both parties again meeting soon to resolve the crisis. The contention of the transporters is that with the rise in cement prices and with substantially good profits for the manufacturers, the two fold increase in diesel prices should be compensated.

Meanwhile, cement supplies were not being transported as a result of the strike. However, the Cement Stockists and Dealers Association of Bombay (CSDAB) president Sanjay Ladiwala pointed out that currently there was no shortage of cement in the city. He also added that the dealer margins have not changed despite the rise in cement prices and currently stood at Rs 1-Rs 2 per bag.

It may be mentioned that the MRTPC has already issued notices to five leading cement companies - Gujarat Ambuja, ACC, Larsen & Toubro, Grasim Industries and India Cements - following complaints of cartelisation against them. The notices have been issued as certain queries made to manufacturers have not be responded to and as a consequence the preliminary investigation report could not be submitted, according to MRTPC.

Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.

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