Sharad Pawar Wants PM Modi’s Intervention To Revive Realty Sector
Acknowledging the situation of real estate sector in Maharashtra, the Nationalist Congress Party (NCP) chief Sharad Pawar has written a letter to Prime Minister Narendra Modi to draw his attention towards the sector stating that the realty sector is in a position of complete collapse due to several restrictions and ongoing lockdown over coronavirus pandemic.
He also tweeted the same stating that amidst the novel coronavirus pandemic and the succeeding nation-wide lockdown has completely collapsed the real estate sector in the state. This departure of the workers will obstruct the real estate projects, mainly those that are in the final stages of construction and more so, as the constriction activities have just returned after weeks of lockdown restrictions.
In his letter to the PM, the NCP chief has stated that the real estate sector’s complete destruction due to the huge departure of migrant laborers that halted real estate works and sale of property for almost 3-months across the nation. Apart from that, passive consumer demand and reduced economic activities have suffered casualties in this industry. As per the report, real estate and allied industries are the 2nd largest contributors in the country contributing over 6% to National GDP.
In his letter, Pawar also referred to an open letter written by the Confederation of Real Estate Developers Association of India (CREDAI) in this context and requested for the immediate intervention of Prime Minister Narendra Modi to support the real estate sector. The CREDAI has made a few recommendations such as one-time (Loan) restructuring, additional institutional funding, abandonment of penal case, policy reforms for causing consumer demand, controlling cartelization of raw material, changing standard of affordability for GST applicability, and operationalization of SWAMIH fund to help the sector.
The Reserve Bank of India has so far allowed a moratorium of a total of 6 months on payment of all loan and interest installments.
CREDAI-MCHI President Nayan Shah stated that most of their demands are non-fiscal in nature and would help in supporting demand across industries and the economy in the general, therefore we are hopeful that the government would offer support to the sector.
Pawar requested the Prime Minister’s personal attention into the matter and the start of necessary measures to recover one of the most important sectors of the Indian economy.
What is SWAMIH?
It is the Special Window for Completion of Construction of Affordable and Mid-Income Housing (SWAMIH) fund was created by the government with contributions from financial institutions such as LIC and SBI to complete over 1,600 stalled projects with 4.5 lakh housing units.
