June 21: The Federation of Contractors Association of Nepal (FCAN), the umbrella body of construction entrepreneurs, has said that the construction industry is on the verge of coming to a standstill due to the excessive rise in the price of construction materials as a result of repeated price hikes of fuel. According to the federation, the recent price hike of Rs 21 per liter on petrol and Rs 27 per liter on diesel and kerosene will further affect the construction industry.

The federation said that projects of national pride and other vital construction projects are likely to be shut down due to sharp rise in fuel prices. The federation is of the view that the government's latest move reflects its indifference towards the construction industry as the government has not provided any relief to the construction businessmen despite the continuous rise in prices.

According to the federation, thousands of construction entrepreneurs, their families and millions of people dependent on the industry have been affected by the unpredictable rise in prices.

A statement issued by FCAN General Secretary Roshan Dahal on Monday states that the federation has been shocked by the sudden rise in prices at a time when the talks between the federation and stakeholders on price adjustment in accordance with the Public Procurement Act and regulations was underway.

FCAN has said that the rise in prices of fuel is affecting the overall development of the country.

Meanwhile, the federation has accused the government of giving undue favour to the insurance companies by increasing the cost of infrastructure development through the provision made by the Insurance Directive-2078 BS.