The federation has demanded that the government immediately make arrangements for fair price adjustments to prevent the construction industry from collapsing.
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The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) has expressed full solidarity with the demands of construction entrepreneurs, saying that the construction industry is in serious crisis due to the unexpected increase in the prices of fuel and construction materials. The federation has demanded that the government immediately make arrangements for fair price adjustments to save the construction industry from collapse.
In a statement issued by the federation on Thursday, it was stated that the construction industry, which is the backbone of the country's economic activities and infrastructure development, is currently going through a difficult situation in history.
The construction industry has been providing employment to more than 2 million people directly and indirectly and nearly 80 percent of the government's capital expenditure is spent through this sector, so its crisis is seriously affecting the entire economy.
According to the federation, the construction industry has come to a standstill due to the unnatural increase in fuel, bitumen, construction materials, transportation and labor costs in recent times. The price of diesel, which was Rs 139 per liter on February 15 before the war in the Middle East, has now reached Rs 225, while the price of bitumen has increased from Rs 75 per kg to Rs 155.
The Federation has stated that construction entrepreneurs have suffered losses of more than Rs 10 billion during this period. The Federation has repeatedly requested the Nepal government to implement price adjustments in all types of contracts, but the Federation has repeatedly complained that the problem has not been resolved.
The Federation has stated that it is unfair to deprive Nepali construction entrepreneurs of this at a time when neighboring India is also providing price adjustments in line with the price increases in fuel and construction materials. The Federation has also warned that if the price adjustments are not made immediately, the construction work of development projects operating across the country will come to a standstill.
Stating that there is a legal provision that price adjustments must be made according to price increases according to Section 55 of the Public Procurement Act 2063, the Federation has demanded from the government to implement price adjustments in all contracts of all periods and not to ‘freeze’ price adjustments under any circumstances.
Considering the current situation where construction entrepreneurs are under extreme financial and mental pressure, the Federation has urged the Government of Nepal and the concerned bodies to make arrangements for immediate price adjustments to keep the overall economy running.
