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As per the construction Cost Index being computed and maintained by Central Public Works Department, the Construction Cost Index for the year 2004-05 for Delhi is 209 as against 166 in the year 2001-02 (Base year is 1991-92). Thus there has been a rise of about 26% in the Construction Cost Index for the year 2004-05 in comparison to year 2001-02.
The reasons for the increase in cost of construction is the rise in the market price of various commodities used in construction such as brick, cement, steel, timber, sand, aggregate building fitting and fixture, etc., and the increase in the wages being paid to the labour involved in construction. Rise in cost of fuel, local law and order situation, shortage of materials, etc, are the other reasons for rise in construction costs.
On the average the percentage contribution of some major elements, to the increase in cost of construction is as given below:-
S.No. Name of items Rate as on Rate as on Increase of
1.9.2001 1.4.2004 percentage
1. Bricks 1450.00 1500.00 3.44%
2. Cement 250.00 270.00 8.00%
3. Steel 1637.50 2562.50 56.48%
4. Aaggregate 20 MM size 425.00 580.00 36.47%
5. Sand(coarse sand) 400.00 550.00 37.50%
6. Paints 63.00 66.50 5.55%
7. Ply & comm. Wood 327.00 478.50 46.33%
8. Pipes 68.83 128.39 86.53%
9. Lamps & fans 531.75 549.35 3.30%
10. Elect. Machinery 30900.00 32000.00 3.55%
11. Wires & Cables 419.22 910.00 117.06%
12. Labour 101.50 115.25 13.54%
This information was given by Kumari Selja, Minister of State (Independent Charge), Ministry of Urban Employment & Poverty Alleviation in her written reply to the question raised by Shri Raj Mohinder Singh Majitha and Dr. Murli Manohar Joshi in Rajya Sabha today.
HRK/Aa
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