Saturday 9 July 2016

Labour crisis predicted in Realty Sector

                       Labour crisis predicted in Realty Sector


                                                      


The real estate sector is witnessing high growth in recent times due to increased demand for housing and according to CREDAI, the highest real estate body; there would be a need for 40 million skilled workers on an incremental basis in the next 10 years. The CREDAI is closely working in this direction with the Government. The one per cent labour cess collected by the government is being used for skill development and labour welfare.

The newly elected members of the Credai are focusing on green buildings, water harvesting apart from insisting with the government to issue guidelines to the states for single window system and online approvals. The newly elected chairman of Credai, Mr.Lalit Kumar Jain, in a letter to the PM has informed that the builders have to deal with 140 officials of various departments / ministries to obtain over 40 multi-clearance requirements. According to a study the delay ranges from 18 months to 2years resulting in 40% loss on the sale cost. 

The chairman of credai, says if corruption and delays are avoided through single window sytem of approvals, the cost of the projects can be considerably reduced and the same can be passed on to the buyers.



In response to a petition filed by a social worker Mr.Quazi, the Bombay High Court has issued to notices to the builder in Mumbra and the civic body TMC of Thane, in Maharashtra.  The counsel of the petitioner had sought interim orders to halt the illegal construction contending that the builders had not obtained requisite permission from the authorities.

It was alleged in the petition that the builder had constructed two six floor  buildings between January 2012 and February 2013. In the petition it was stated that the families are occupying the six floors in each building and have been provided with water and electricity facilities by the builder.
The petitioner has cited the incident of April 4, in Shil Phata in which an illegally constructed seven storey ed building collapsed claiming 74 lives and injuring 64 others. The petitioner had sought interim orders to stop the constructions  of  two additional floors in each of the buildings stating that the construction was illegal. 


The Business Line, Chennai,12.04.2013 and The Finexp,25.04.2013
Single – window clearance needed for affordable homes, says HDFC chief 
- Affordable Housing possible through Single-window clearance

Between the years 2011-2015 it is estimated that the demand for affordable homes especially 1 to 2 bed room houses is likely to increase more than three times compared to the supply. In this scenario,  the Chairman of Housing Development Finance Corporation (HDFC) one of the leading housing finance institution in India, says “ The single greatest benefit of having a single window clearance is that it will reduce housing prices, because  the time taken for approval of projects will come down significance from the present 18  months time”. On the subject he further says “ Vested interests have always existed as far as land is concerned. Rampant violation of building norms, excessive greasing of palms, and lack of coordination among civil authorities strongly point to the fact that there is an urgent need to cleanse our internal systems. This has to be done through tighter regulations’. 

In this connection the ministry of housing and urban poverty alleviation is planning to set up planning to set up a single window clearances for developers for which a streamlining committee has already been set up. While addressing the National Editors’ Conference  Mr.Ajay Maken minister for HUPA has said “ The committee on streamlining approval procedures for real estate projects has recommended setting up of a nodal agency to coordinate real estate projects, bringing down average approval time from 196days to 46-60 days”. The ministry is also planning a housing start- up index in collaboration with Reserve Bank of India.

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