Reverse migration of labourers and a break in the supply chain of construction material has adversely impacted real estate projects and the construction work will take quite some time to reach full gear, union housing minister Hardeep Puri said Saturday.
Puri said it is vital to take remedial steps to ensure the Covid 19 pandemic does not lead to a complete breakdown of the real estate sector after causing major project delays.
“As we have already seen stalling of a lot of projects in Delhi- NCR region due to various reasons, leading to a lot of litigations etc, it is vital to take remedial measures now to ensure that Covid-19 does not lead to a complete breakdown of the real estate sector. Such a situation will result in many stalled projects resulting in huge losses for all the stakeholders especially homebuyers,” he added.
Speaking with the stakeholders of the real estate sector in a webinar titled ‘3rd anniversary of RERA’, Puri said the principal objective of RERA is to help restore the trust between a buyer and the seller by effective implementation of the act.
“This would not only help ease the burden of inventory pile-up in the sector, but also provide the necessary financial cushion to the developers to complete pending projects,” he said.
During the initial period of the lockdown, construction activities were barred. After reviewing the situation, the Government has put in place certain measures to allow for construction activities, effective from April 20 onward, he said.
Referring to the announcement made by the finance minister Friday to provide affordable rental housing to migrant labourers and urban poor, Puri said the Affordable Rental Housing Complex (ARHC) scheme, where Government-funded houses in cities, will be converted into Affordable Rental Housing Complex under the PPP model.
“This single step will, to a great extent, alleviate the problem of providing temporary housing to migrant people who are stranded in several urban areas. The Credit Link Subsidy Scheme (CLSS) under Pradhan Mantri Awas Yojana – Urban (PMAY-U) for middle-income group has been extended to 31st March 2021, which is likely to benefit 2.5 lakh middle-class people. He added that these measures are aimed at giving a fillip to the housing sector, as a part of the Aatmanirbhar Bharat Abhiyan, announced by the Prime Minister,” he added.