Warning steel producers against profiteering, Union Minister Nitin Gadkari on Thursday said he has sought Prime Minister Narendra Modi's attention towards 55 per cent hike in steel prices by players during the past six months, making projects unviable. The road transport, highways and MSME minister also said if the players failed to curb the practice, the government will have to change policies and encourage alternative technologies in projects.

Addressing the Assocham Foundation Week on 'national infrastructure pipeline critical for economic revival across sectors', Gadkari also said a GPS system for tolling is on the anvil in which toll payments will be deducted automatically on the distance traversed. "There has been a 55 per cent hike in steel prices in the past six months. I have written to PM and Steel Minister (Dharmendra Pradhan) for a decision on this," Gadkari, who earlier warned cement makers against cartelling, said.

He also said a long-term policy is needed for it as the prices hiked did not match raw material and labour prices. "A long-term policy is needed for steel and cement manufactures... a uniform policy," he said and added that had the price hike been in the range of 15-20 per cent, it could have been justified but it was abysmally high. "They can enhance productivity and earn profit. Else, projects will become unviable," he said and elaborated that steel and cement accounted for 40 per cent of the project cost.

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