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Coming down hard on cement makers for indulging in price "cartelisation" in roads and highways space, Union Minister Nitin Gadkari today warned them against "exaggerated exploitation" in name of earning profits.
The Minister of Road Transport and Highways stressed on an urgent need to bring down the cost of projects and said he would approach Prime Minister Prime Minister Narendra Modi on the issue of "cartelisation" by cement makers.
"We want to reduce the cost of the project and if we want to do that then we have to reduce the cost of material used for the project," he said at a CII conference.
"That the cement industry indulges in cartelisation and it makes a huge difference to the production and marketing cost. We have decided to build cement concrete road and we want that the cost of construction should remain low," he added.
Every company has a right to make profit but there should not be any "exaggerated exploitation", Gadkari said.
Meanwhile, many private companies in the past have shied away from the government's attempt to bring PPP (public-private partnership) in road projects due to factors such as hurdles in land acquisition.
"Land acquisition, slow decision, financial constraints due to bankers' unwillingness to finance projects were the reasons private companies were not keen on setting up projects on PPP basis," Gadkari said, adding that the government is doing everything to make the business investment environment conducive in the sector.
