Credai president: Effects of second Covid wave trickling onto economy

Credai- Pune Metro president Anil Pharande believes the second wave of Covid-19 was more frightening than the first, and the effects are now beginning to show on the economy

Credai- Pune Metro president Anil Pharande believes the second wave of Covid-19 was more frightening than the first, and the effects are now beginning to show on the economy.

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“The construction business, which is in full swing, needs the help of the government to revive the business in the near future,” he said.

Pharande added that the shortage of construction workers, rising prices of essential materials and delays in getting building permits have affected the construction sector in Pune.

The survey conducted across North, East, West and South zones between May 24 and June 3, 2021 with stratified sampling method at various levels witnessed a first-of-its-kind extensive participation /’of 4,813 developers from 217 cities, providing crucial insights on the industry sentiment and the range of challenges faced by the real estate sector.

Speaking on the findings, Pharande said, “This was a very important survey done by us to measure the actual impact of the second wave and it was very well received by members. Today, we are selling at the lowest possible rates and rates of real estate are bound to increase in the near future due to steep hike in construction material cost like cement, steel, copper, aluminium and PYC. Accordingly, we want the stamp duty reduction scheme to restart in Maharashtra and input tax credit in GST. Faster clearance of sanctions will also help us optimise our cost and timelines. If the projects are approved as soon as possible, we can have some control over the timing and alternative cost of completing the projects. The government should also look into the issue.”

“On the one hand, the prices of steel and cement required for construction are steadily rising, while on the other hand, the number of consumers is declining. In such a situation, the central government should intervene and control the prices of steel and cement,” Satish Magar, national chairman, Credai said.

Harsh Vardhan Patodia, president, Credai national said, “Based on the report of this survey, we request the government to infuse urgent financial stimulus and initiate quick progressive measures to assist recovery, one-time restructuring of loans and 6 months extension of completion date by Rera, stamp duty reduction or waiver, moratorium extension on principal & interest for 6 months, and freezing of SMA classification for another year. We are hopeful that the government will consider our appeal and will make urgent interventions this time.”