KATHMANDU June 22: KATHMANDU June 22: The construction industry is on the verge of closure due to the excessive rise in the prices of fuels, according to the Federation of Contractors Association of Nepal (FCAN).
A press statement issued by the FCAN General Secretary Roshan Dahal on Monday said the price of petrol increased Rs 21 per liter and that of Kerosene and Diesel rose by Rs 27 per liter, affecting the construction industry.
“Looking at the figures of the last few months, due to 100 per cent increase in fuel prices, projects of national pride and urgent construction projects across the country have come to a standstill,” the federation said.
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The federation is of the view that the government's latest move reflects its indifference toward the construction industry as the government has not provided any relief to the construction businessmen despite the continuous rise in fuel prices. According to the federation, thousands of employees working in the construction sector, their families and hundreds of thousands of dependent workers in the construction business will be affected across the country due to the unexpected increase in prices.
The federation was surprised after seeing the unexpected increase in the price of petrol at a time when negotiations between the federation and stakeholders on price adjustment in accordance with the Public Procurement Act and rules were ongoing, said the federation.
FCAN states that the sudden rise in fuel prices is affecting the development of the nation because the petroleum price has increased without reducing tax on petroleum products and addressing the leakage problem.
Similarly, the cost of building infrastructures has also increased because of the provision made by the Insurance Directive- 2075 BS.
The federation has strongly objected to the inhuman act being committed such as breaking bank contracts by claiming bank guarantee and recommending to be blacklisted, while the businessmen of the construction industry are suffering from non-payment and complexity.
