The increased cost of finance and execution delays have resulted in slow movement in the construction projects, translating to slower demand growth for long steel and so with sponge iron. Most of the fundamental issues which affected the cement demand in FY11 and H1FY12 continue to persist. Issues pertaining to land acquisition; delays in securing the requisite approvals and problems in achieving financial closure as well as sector-specific issues such as fuel security for power projects and delays in awarding contracts in road projects have affected the infrastructure projects. However, government has started taking some economic measures to achieve growth in infrastructure and construction sectors on the whole and the growth overall country's GDP along with the reduction of inflation rates as they are the key concerns for sponge iron sector demand growth.