Union Micro-Small & Medium Minister (MSME) Nitin Gadkari in a warning to the steel and cement industry said there are cartels in the sector which are taking advantage of the current situation in the real estate sector.
“There is a cartel in cement & steel industry. Every steel company has its own iron ore mines & there has been no increase in labour & power costs but they are increasing rates. It is difficult for me to understand (the reason behind it,” said Gadkari during an industry event on Saturday.
He further added that the government has lined up infrastructure projects worth Rs 111 lakh crore in the next 5 years but there are bottlenecks owing to rising rates of steel and cement.
Cement factories are exploiting the situation. It's not in national interests. We're planning to implement infrastructure projects worth Rs 111 lakh crores in next 5 years. If rates of steel & cement continue like this, it'll be very difficult for us,” he added.
He added that the government faces maximum bottlenecks in the real estate industry and it is trying to find solutions. One of the suggestions put across in the Builders’ Association of India meet was to set up a regulatory body for the steel and cement industry.
Gadkari said he will take suggestions from Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman over the matter.