Highway developers worried over rising labour cost

Cost of labour has risen by over 50% over a period of three years

The infrastructure sector is trying to address not only a financial crunch but also a shortage of skilled labour, even as labour costs in the sector have risen in three years by a little more than 50 per cent.

According to the latest National Highways Construction Cost Index data, issued this June, the index for labour cost was at 185, compared to 110.2 in April 2014. Labour accounts for around 8-10 per cent of road construction cost.

Experts point to a higher thrust on infrastructure development, lack of skilled labour and government incentives to the rural population that accounts for