While Maharashtra Real Estate Regulatory Authority (Maha-Rera) in its order dated April 2 extended the completion deadline for registered projects by three months, the city developers were expecting a one year’s extension. They said that shortage of manpower and raw material and less cash flow is hampering the ongoing projects.
The order, issued on April 2, stated that all Maha-Rera-registered projects whose completion or revised completion or extended completion expires on March 20, 2020, has been given an extension of three months. Pune district administration allowed commencement of construction work from May 4.
Suhas Merchant, president, Confederation of Real Estate Developers Association of India (Credai), said, “We were expecting one-year extension as despite government’s decision to allow commencement of work at under-construction sites, developers are facing multiple problems, including financial strain and inadequate cash flow.”
Credai undertook a survey this week among 216 real estate developers to identify the key reasons for not being able to restart the construction work in Pune Municipal Corporation (PMC), Pimpri Chinchwad Municipal Corporation (PCMC) and Pune Metropolitan Region Development Authority (PMRDA) regions.
“The survey indicated that majority of developers are facing problems like unavailability of construction material, especially the material related to pre-monsoon construction work; difficulties in construction material reaching the sites; problems faced by technical staff and site engineers in reaching the construction sites,” said Merchant.
{{/usCountry}}“The survey indicated that majority of developers are facing problems like unavailability of construction material, especially the material related to pre-monsoon construction work; difficulties in construction material reaching the sites; problems faced by technical staff and site engineers in reaching the construction sites,” said Merchant.
{{/usCountry}}“There is a state of confusion in the minds of the labour force at the construction sites. They want to return to their hometowns because of less work opportunity here and it is hampering projects”, said Merchant.
The Credai chief pointed out that it is important to speed up the process of solving these problems because of less time in hand to complete the pre-monsoon work. “Site work for basement, retaining wall, underground work, waterproofing cannot start without consultants and the technical staff, including special work supervisors, need to present at sites.
“Many labourers have left for their hometowns due to lack of work. So, if we do not start the work right now, the few labourers who are here will also leave and it will further delay the projects,” he said.
Rohit Gera, managing director, Gera Constructions, said, “Though Maha-Rera has given an extension, the situation on the ground is different as lockdown is still in place. We will know the impact on real estate when we have full labour on-site and adequate supply of raw materials.”
“The situation right now is that we have only 50 per cent of the labourers on-site, with many wanting to return to their villages, therefore affecting the projects. I am hopeful that even in these difficult times, Rera will stand by the developers and address problems judiciously,” said Gera.
Gautam Chatterjee, chairman, Maha-Rera, said, “Due to the current situation, real estate projects across Maharashtra will take some time to resume. Recognising this, RBI has also allowed banks to provide a three-month moratorium on fixed-term loans and EMI payments.”
“Therefore, in order to aid government efforts in controlling the damage of Covid-19 and ensure that completion of Maha-Rera registered projects does not get adversely affected, it has been decided to issue the order (extension order),” he said.
Findings of survey undertaken by Credai
Credai undertook a survey this week among 216 real estate developers to identify the key reasons for not being able to restart the construction work in Pune Municipal Corporation (PMC), Pimpri Chinchwad Municipal Corporation (PCMC) and Pune Metropolitan Region Development Authority (PMRDA) regions
-Together, they have only 45,700 labourers at the site (in-situ)
-Based on the survey, over 46% of labour will leave for hometowns as they have no work
- Less than 20% of the staff was able to reach the site due to confusion/unavailability of e-pass / harassment by police.
- About 90% of developers need material on site to begin work (pre-monsoon preparations)
-Less than 10% of developers have been able to receive any material on site in the last few days
- Almost 50% of developers (105 out of 216) have less than 100 labourers available at the site
-Less than 3% of developers have more than 1,000 labourers at all their on-going sites
Due to the lack of petrol, many site staff, consultant staff (for checking) and contractor staff cannot come to work
- Inter-district travel is currently not being allowed. Many senior engineers had travelled to hometown just before lockdown and they need to get back to Pune
- One-time permission to move specific labourers required for pre-monsoon works
- Gram panchayat and police are asking for health check-ups of labourers because of which they want to return to their villages
- Ready mix concrete(RMC) plants are shut and hence, concretisation is not possible at several places
- Safety/hygiene material is not coming to the site and hence, facing difficulty in implementing guidelines
- Banks have stopped disbursements, so cash flow is a challenge