Steep prices are likely to go up by as much as Rs6,000 per matric tonne as a result of imposition of fresh levies on the commodity in the recently announced budget for FY 2014-15.
According to construction experts, the cost of production of steel will rise in the wake of 75 percent increase in the electricity rates for its production industry.
Moreover, the government is also set to collect Rs6,700 tax compared to existing Rs5,862 from the ship breaking companies effective from July 1.
The builders say that the steel is already being sold for Rs77,000 per matric tonne instead of its original rate of Rs68,000 and this, as a result, will raise the cost of construction.