What is the impact of rising prices of steel and cement on the construction industry?
The cost of projects is likely to increase as a result of the increase in prices of steel and cement, the two basic materials used in construction. However, such increase in costs has to be compatible with international prices, in view of WTO imperatives. At the same time the agencies will have to enhance their efficiency and competitiveness, and optimise project costs so as to maintain their position in face of stiff global competition knocking at our doors. What are the major problems facing the construction industry in India? Our construction industry suffers from capacity constraints, lack of trained manpower and managerial skills with performance much below international level. Though there are islands of excellence in a sea of mediocrity, our companies must become global players by modernising, intensive training of their manpower, enhancing their turnover and change of mindset. The industry is starved of finance. Small and medium contractors do not have the wherewithal to upgrad
