Cost overruns: Many projects put off in TN as hike in materials hits construction

CONSTRUCTION activity across Tamil Nadu has been hit due to a spike in the cost of materials such as river sand and blue metal by up to 30% over the last few weeks. Building construction cost has gone up by nearly 15% to 20% (from 2,200 to ₹2,500 per sqft).

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While new projects are being postponed, the price escalation has led to cost overruns in existing projects.

Several government contractors too are worried and feel that the price hike may affect the implementation of state and central government projects. Stone crushers may go in for another round of price hike in April, contractors said.

S Ramaprbhu, committee chairman, municipal and DTCP, BAI, said, "One cubic feet of m-sand, sold for around Rs 40 per cubic feet, has gone up to Rs 70. There is scarcity of river sand after Enforcement

Directorate action. The quantum of river sand brought illegally from Nellore has gone up.