In­dus­try Sta­tus badly needed to Hous­ing Con­struc­tion In­dus­try Build­ing Con­cept

Accommodation Times - - Editorial - Mu­rari Chaturvedi mu­rari@ac­com­mo­da­tion­

Gov­ern­ment’s leaden footed ap­proach to grant the in­dus­try sta­tus to the hous­ing con­struc­tion in­dus­try is the root cause of in­va­sion of spec­u­la­tors in this core in­dus­try. In the ab­sence of in­sti­tu­tional fi­nance to the con­struc­tion in­dus­try, since it is not ac­corded in­dus­try sta­tus, the de­vel­op­ers are com­pelled to raise funds ei­ther from spec­u­la­tors or bor­row at whoop­ing rates of in­ter­est with the re­sult that the real es­tate prices be­came most un­re­al­is­tic. The gov­ern­ment has granted in­dus­try sta­tus even to the film in­dus­try. There should be no hes­i­ta­tion to grant in­dus­try sta­tus to this much more im­por­tant con­struc­tion sec­tor. Con­struc­tion in­dus­try in In­dia is more im­por­tant and is, pro­vid­ing em­ploy­ment to 22 mil­lion work­ers. By way of taxes, stamp duty and devel­op­ment charges etc. the in­dus­try is pay­ing whoop­ing sums to the gov­ern­ment. Yet it is the most ne­glected in­dus­try. In the ab­sence of the in­dus­try sta­tus the con­di­tion of con­struc­tion work­ers is pa­thetic. They, who are the builders of the na­tion, are in no way pro­tected. There is no pro­vi­sion for prov­i­dent fund or other es­sen­tial cov­ers for them. The in­dus­try sta­tus is also badly needed to at­tract NRI’s and for­eign com­pa­nies to plough funds in the in­dus­try to boost hous­ing and con­struc­tion. This can give a kick start to the sag­ging real es­tate mar­ket. The real es­tate is not a spec­u­la­tive in­vest­ment, but be­cause of money sup­ply con­straints, it was made so. This has re­sulted in sky rock­et­ing of real es­tate prices, and ul­ti­mately out of the reach of com­mon man. This has the worst ef­fect on the prop­erty mar­ket. Since there is no in­sti­tu­tional fi­nance avail­able for buy­ing plot of land. The de­vel­op­ers raise money from in­for­mal source, at high rate of in­ter­est. Thus in­creas­ing the cost of the prop­erty. This can be eas­ily reme­died by award­ing in­dus­try sta­tus to this core sec­tor.

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