FBCCI for reconsidering rod price in govt projects

The Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) on Sunday urged the government to reconsider the price of rod in the development projects.

Manwar Hossain, Chairman of the FBCCI Standing Committee on Iron, Carbon Steel, Stainless Steel and Re-rolling Industries and president of the Bangladesh Steel Manufacturers Association, made the call at the first meeting of the committee held at FBCCI, said a press release.

“The Public Works Department has fixed the price of per ton rod at Taka 72,000. But, now per ton scrap costs at least Taka 62,000 and the production cost is more than the fixed price. Hence, the government should reconsider the price” he urged.

Manwar said the term loan should be given for at least 10 years and the deferred payment for rod should be increased to 720 days from 360 days while for machines the time should be 5 years instead of 3 years.

The chairman of the Standing Committee also opined against new investment in steel and cement sector with bank loan as these two sectors are now overcrowded.

The director in charge of the committee Md. Jamal Uddin said that construction sector has been contributing a lot to the nation’s development. “Even they have been running their business with 25 to 30% loss. However, many giant construction companies have shut their businesses due to the sky-high price of the rod.”

The President of the Bangladesh Association of Construction Industries Engr. Shafiqul Haque Talukder said that the contractors have to implement the government project at the price fixed at the contract even if the prices of the raw materials go up. In doing so, 25 percent of contractors have become bankrupt. Therefore, he urged for introduction of a price adjustment clause in the development project.

Speaking as the chief guest, FBCCI President Md. Jashim Uddin said that both the steel and construction are strong sectors and they both have many challenges. He called upon the committee to identify these challenges and assured them of extending maximum cooperation from the FBCCI.

FBCCI Senior Vice President Mostofa Azad Chowdhury Babu suggested for conducting a seminar jointly by the steel and construction sector.

Earlier, former Senior Vice President Mohammad Ali called for keeping the price of the construction materials reasonable.