Relief for construction industry as TN govt slashes material prices

CHENNAI: After a shocking hike that shook the construction industry last week, the Tamil Nadu government has announced a reduction of Rs 1,000 in the recently revised prices of M-Sand, B-Sand, and gravel, to ease construction material costs.

Further, the government has fixed the seigniorage fee for ordinary stones at Rs 33 per metric tonne, a step aimed at streamlining minor mineral operations.

The decisions were finalised during a high-level meeting chaired by Water Resources Minister Duraimurugan at the State Secretariat on Sunday, convened to address the demands raised by the Tamil Nadu Stone Quarry, Crusher, and Lorry Owners' Federation through their representation dated April 25.

"After extensive deliberations with senior officials and industry representatives, it has been resolved to slash the prices of M-Sand, B-Sand, and gravel by Rs 1,000 from the recently hiked rates. In addition, the seigniorage fee for ordinary stones has been fixed at Rs 33 per metric tonne. A Government Order implementing the revised fee structure will be issued within a week," the government said in an official release.

This intervention comes at a critical juncture, as Tamil Nadu's construction and infrastructure sectors have been grappling with rising material costs, which in turn have affected project timelines and overall affordability.

The reduction is expected to stabilise prices and provide much-needed relief to builders, developers, and end consumers across the state.

"While the real estate market has shown promising recovery after a hiatus of eight years, the escalating costs of construction materials, such as M-Sand, B-Sand, and gravel, remain a significant burden. Although the government has slashed the revised price hike, the impact may take time to reflect on the ground. Moreover, builders are concerned about future price hikes, which could ultimately affect buyers, creating an atmosphere of uncertainty," said S Sivagurunathan, former president, CREDAI and director, Asvini Foundations.

Officials noted that the streamlined seigniorage fee system would bolster transparency, enhance compliance, and ensure fair practices in the mining and minerals sector.

They reiterated the government's commitment to maintaining an industry-friendly regulatory environment while safeguarding the interests of the public.

The meeting was attended by additional chief secretary (Water Resources department) K Phanindra Reddy, commissioner of Geology and Mining department A Saravanavelraj, Tamil Nadu Stone Quarry, Crusher, and Lorry Owners' Federation president K Chinnasamy and other officials.