Realty, hospitality sectors in Maharashtra yet to feel full force of migrant workers

Despite some migrant workers returning to city, most firms are operating with 50% or less workforce.

May 14 and 15 will forever be etched in Mukesh Mali’s mind. Six years after moving to Mumbai in the hope of bettering the quality of life of his three school-going siblings and farmer parents, 27-year-old Mali returned to his village, Kosalao — a five-hour drive from Jaipur — on foot. At the time, the nationwide lockdown had just been extended for the third time, and while the Centre and states allowed shramik special trains and buses to ply from April-end, thousands of stranded workers, like Mali, walked back to their home states. “We tried very hard to get tickets, but trains were always full. But walking back was the most difficult thing we’ve ever done,” Mali said. “Some of us fainted, we stopped multiple times.”

In view of the lockdown, MahaRera had first extended validity of real estate projects by 3 months on April 2, and then extended it by another 3 months on May 18.(HT FILE)

Now, Mali is in two minds about returning to Mumbai, where he worked as a manager in a three-star hotel in Parel, overlooking waiters, food quality, and attending to complaints. With his savings nearly over, Mali is frustrated — “Our area faces acute scarcity of water. The income is based on rains. Both a shortage as well as an excess of rainfall would mean that our crop is destroyed,” said Mali, who also taught in a private school before migrating to Mumbai in 2014. At the hotel, he earned ₹24,000, most of which he sent home to his parents. His employer wants him to return but his parents want him to return only after a vaccine programme is in sight.

“They are afraid, since I am the main earning member [that I will fall ill]. They want me to do menial jobs in my village till the vaccine is introduced. But my employer has assured me that he is following all the rules and that I would be safe,” Mali said.

He is not alone in facing this dilemma. Two major industries of Mumbai — hospitality and real estate — stare at a bleak future as several migrant workers haven’t returned due to the high number of active coronavirus cases in Mumbai. According to the state government, at least 1.2 million workers from states like Bihar, Uttar Pradesh, West Bengal, Rajasthan, Jharkhand and Odisha, left Maharashtra after the lockdown was announced on March 24. Estimates by industry bodies like the Maharashtra Chamber of Housing Industry (MCHI-CREDAI) and the Indian Hotels and Restaurant Association (AHAR) reveal the current shortfall to be approximately 210,000 workers in the real estate sector and around 300,000 workers in the hospitality sector, which comprises everything from small roadside dhabas to boutique hotels and includes a host of subsidiary businesses. “There is still fear as Mumbai continues to be a hot spot of Covid-19 and rumours of another lockdown are always rife,” said Sukesh Shetty, secretary, AHAR.

Real estate sector hit

On April 2, Maharashtra Real Estate Regulatory Authority (MahaRera) extended the registration validity of projects by three months, and on May 18, by another three more months invoking the ‘force majeure’ (unprecedented event) clause and stating that the Covid-19 outbreak was a calamity that was adversely affecting the development of real estate projects.

However, real estate research firm Liases Foras warned that delays in execution of projects has a negative impact. “The builders get money based on the stage of construction, and today banks have become very cautious in disbursal of money. If the builders delay their work, it will only result in making projects unviable,” said managing director Pankaj Kapoor.

According to Kapoor, there are 4,500 projects ongoing in the Mumbai Metropolitan Region of which 80% are likely to be delayed by 12-14 months; 80 projects of the top five builders will likely face a delay of 6 months to a year, he said.

Omkar Realtors and Developers Private limited (ORDPL), a leading firm specialising in slum revamp projects, is doing everything it can to woo workers, said its director. “We used all available modes of transport such as arranging buses, booking train tickets as well as making flight reservations to bring our workers back,” said Rajendra Varma of ORDPL. In the past four months, they have brought back approximately 1,300 workers to resume work in seven construction sites. But their workforce is still falling short by at least 30%, Varma said.

He felt optimistic as the panic around Covid-19 had subsided and the wages offered in Mumbai were more than what workers earned in their home states, these would be incentive enough for them to return.

“We don’t have any work opportunity in our villages,” said Malashri, 25, a resident of Bidar, Karnataka and mother of four. “Due to Covid-19, villagers did not allow anyone inside their houses for work. Even they had less money because hardly any economic activity was taking place,” said Malashri, who returned to Mumbai in November with her husband Srinappa Kamble in a luxury bus, tickets paid for by the builder. The two work at a construction site in Dronagiri in Navi Mumbai for ₹1,000 a day — Malashri earns ₹300 while Srinappa is paid ₹700 for their labour.

Hotels struggle to open

Many like Mali are not keen to return to the city which has a population density of 20,000 people per square kilometre. And for many restaurant owners, this has meant that they remain shut.

VIE Hospitality, which runs Revival Restaurant at Girgaum Chowpatty famous for its thalis, has remained shut for the past eight months. Though restaurants were allowed to open in Mumbai in October, it has kept its restaurant shut due to labour shortage. “I employ workers from Uttarakand and Jharkhand, scattered across the states. It was not possible to arrange buses or other vehicles, and even if I had, I doubt the workers would have been ready to travel by road for a week to reach Mumbai,” said Kamlesh Barot, director, VIE Hospitality, justifying his decision to not arrange for transportation for workers.

Mirah Hospitality, which runs 10 hotels including Rajdhani, Hitchki and Bayroute in Mumbai, is operating with 700 staff members — less than 50% of their pre-lockdown numbers. “We are operating our hotel with just 50% capacity due to the government’s guidelines and hence are managing it with the current depleted number of staff,” said Aji Nair, COO (food and beverages division).

“Hoteliers are not sure of their business as patrons are still reluctant to frequent their place due to the fear of Covid-19. In addition, the hotels need some trained staff which has been with them for years. Hence it makes sense to wait for the staff and open properly,” said Savio D’sa, a hospitality consultant.