TV
The cost of building a house in Odisha may soon skyrocket, with essential construction materials like chips, metal, and crusher dust expected to become five to six times more expensive. This alarming projection arises as around 367 crusher units in Khordha district face potential shutdown, triggering widespread concern among industry stakeholders.
Local associations, including the regional Hill Action Committee and Crusher Association, have warned that this situation could not only lead to a sharp rise in material prices but also result in the loss of employment for thousands of workers engaged in the construction and mining sector.
The crisis stems from the government's newly fixed base price for hill auctions. As part of its revised policy, the Odisha Mining Corporation (OMC) has taken over the hill leasing process, replacing previous auctions conducted by the Revenue Department and other entities like the Shree Jagannath Temple Administration.
Earlier, the auction rate for hills stood at Rs 170 per cubic meter. However, with the OMC now in control, the government has proposed a new base price of Rs 500 per cubic meter. This threefold increase in raw material cost has alarmed local stakeholders, especially as e-tender processes now attract traders from outside the state who are bidding at higher rates.
The consequences could be far-reaching—massive extraction from hills, potential theft of stones, and an inflated market for consumers. If the government's proposed base rates are enforced, the entire construction industry will face disruption.
The Mines Minister has acknowledged the issue and assured that a Standard Operating Procedure (SOP) to address the crisis will be released soon.
As this situation unfolds, building even a small house may soon become an unaffordable dream for many in Odisha.
The stone crusher industry in Khordha district, comprising a total of 367 small and large crusher units, is facing a potential crisis. This sector provides direct and indirect employment to over 30,000 people. However, concerns are mounting as bidders from outside the state are reportedly entering local stone quarry auctions, threatening the survival of the district's crusher industry.
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Local stakeholders fear that if such entrants are allowed to dominate the auctions, Khordha’s crusher industry could come to a standstill. Adding to the distress, the cost of raw materials used in crushers is seeing a sharp surge. This price hike is expected to raise the cost of construction materials like chips, metal, and crusher dust by nearly five to six times, posing challenges not just to the industry but also to general home construction.
The development has sparked strong reactions in local areas. In response, the MLA of Khordha has assured that the issue will be brought to the attention of the state government. Meanwhile, the State Minister for Mines stated that the government is preparing to introduce a Standard Operating Procedure (SOP) to address the situation.
"The matter is being reviewed and it will be resolved. The interests of the consumers will be protected. The state government is working on a solution to ensure common people are not adversely affected," said Odisha Mines Minister Bibhuti Bhushan Jena.
