Construction cost rises by around 5 per cent in Jan-Mar: CIDC

NEW DELHI: Rise in prices of cement and steel inflated the construction cost by around 5 per cent in January-March 2010 compared to the same period last year, Construction Industry Development Council ( CIDC) has said.

"The indices have been steadily rising over the 2009-2010 period. This is primarily due to rise in the price of cement, steel and labour," CIDC said in a statement.

Set up jointly by the Planning Commission and domestic construction industry, CIDC advises the government on policy formulation related to the industry.

According to the CIDC data, which highlighted the variations in cost of construction over 11 sectors and six cities, construction cost indices for buildings in Delhi rose to 114.3 points in January-March 2010 from 110.01 points in the same period last year.

Construction cost indices for power in Bangalore rose to 112.76 points in the three-month period of from 110.39 points in the corresponding period last year.

The cost of construction for urban infrastructure in Mumbai went up by 4.42 per cent in the reporting period.

The cost of construction might increase further in the current quarter as the government increased excise duty to 10 per cent in the Budget. Steel and cement have become costlier post-Budget, as the producers have passed the burden on the customers.