Thursday, 7 July, 2022
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FBCCI committee for reviewing rod price for dev projects

FBCCI committee for reviewing rod price for dev projects

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FBCCI Standing Committee on Iron, Carbon Steel, Stainless Steel and Re-rolling Industries urged the government to reconsider the price of rods for the development projects.

Chairman of the committee and president of the Bangladesh Steel Manufacturers Association (BSMA) Manwar Hossain made this call at the first meeting of the committee held at the FBCCI office in Dhaka on Sunday.

“The Public Works Department has fixed the price of the per tonne rod at Tk 72,000. But a tonne              of scrap materials costs at least Tk 62,000, and the production cost is more than the fixed price. Hence, the government should reconsider the price,” he stated.

The term loan should be given for at least 10 years and the deferment of payment for rods should be increased to 720 days from 360 days while for machines the time should be five years instead of three years, the committee chair said.

He also opposed new investment in steel and cement sectors with bank loans.

The director in charge of the committee Md Jamal Uddin said construction sector has been contributing a lot to the nation's development.

“The investors in the sector are even running their business with 25 to 30% loss. However, many giant construction companies have shut their businesses due to the sky-high price of the rods,” he said.

President of the Bangladesh Association of Construction Industries Engr. Shafiqul Haque Talukder said the contractors have to implement the government projects at the prices fixed at the contract level even if the prices of the raw materials go up.

In doing so, 25 percent of contractors have become bankrupt, he said, calling for introduction of a price adjustment clause in the development project.

Speaking as the chief guest, FBCCI President Md. Jashim Uddin said both the steel and construction are strong sectors and they both have many challenges too.

He called upon the committee to identify these challenges and assured of the maximum cooperation from the FBCCI.

Senior Vice President Mostofa Azad Chowdhury Babu suggested holding a seminar to be jointly organised by the steel and construction sectors.

Earlier, Former Senior Vice President Mohammad Ali called for keeping the price of the construction materials reasonable.