25-Mar-2020 - CREDAI Bengal Homes
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
25-Mar-2020
CREDAI Bengal Daily News Update | 25.03.20
Issued in Public Interest
WEST BENGAL NEWS
Newspaper/Online The Telegraph (online)
Date March 25, 2020
https://www.telegraphindia.com/business/real-estate-developers-seek-more-time-
Link
to-finish-projects-amid-coronavirus-lockdown/cid/1758863
Real estate developers seek more time to finish projects amid
coronavirus lockdown
Real estate developers in Calcutta have started lobbying with the Bengal government to
announce Covid-19 as a “force majeure” condition, seeking to buy more time to complete
ongoing real estate projects. Work at the construction site has come to a standstill due to the
lockdown announced by the Bengal government on Monday. The Prime Minister Narendra
Modi extended the lockdown period across the country to April 14.
Credai Bengal, the body of the builders in the state, has shot off letters to housing minister
Chandrima Bhattacharya and principal secretary Onkar Singh Meena, who is also the
chairperson of West Bengal Housing Industry Regulatory Authority, seeking six months
additional time to complete ongoing projects.
“As you would acknowledge that these are unprecedented times and thus unprecedented steps
maybe needed to be taken and hence we sincerely request you to declare the epidemic of Covid-
19 as a ‘calamity caused due to nature’, which will affect regular development of real estate
projects. We estimate that this will be for a period of 6 months at least for projects to get back to
regular schedule. Thus this period of at least 6 months be considered an exempted/ extended
period of the delivery of projects under the ‘force majeure’ explanation clause under
WBHIRA,” Sushil Mohta, president, Credai West Bengal, wrote.
Sources in the government said WBHIRA has taken preliminary measures to avoid hardship to
developers. All pending hearings have been deferred. Moreover, it also relaxed timeline for
rectification or submission of additional document for pending registration.
“The primary task now before the administration is containment of the disease. The measure to
contain the economic fallout of the pandemic will be taken at the appropriate level at the
appropriate time,” a government official explained. Force majeure clause allow the authority to
extend registration of a project for one year. However, developers have sought six months as of
now.
“Workers, many of whom comes from neighbouring states, have fled to their home fearing
contracting the dreaded disease. We do not know when they will be back. Plus, there will bemajor disruption in payment from buyers, funding from bank, getting raw material supply. Hence, it is the need of the hour from industry,” Mohta explained. _____________________________________________________________________________
Newspaper/Online The Times Of India (online)
Date March 25, 2020
https://timesofindia.indiatimes.com/business/india-business/covid-19-realty-sector-
Link urges-govt-for-
sops/articleshow/74801146.cms?utm_medium=referral&utm_campaign=iOSapp&
utm_source=WhatsApp.com
Covid-19: Realty sector urges govt for sops
The real estate industry in the state has sought some sops under the West Bengal Housing
Industry Regulatory Authority (WBHIRA) Act following the coronavirus pandemic (Covid-19)
and subsequent lockdown in the state. Credai, West Bengal, has written to state housing miniser
Chandrima Bhattacharya in this regard.
Credai West Bengal president Sushil Mohta said that it has written to both minister and
secretary and got encouraging response. “We have got some relief and the government would
examine the others,” he added.
Mohta pointed out that there is also a huge impact on the continuity of all technical service
providers, including architects, structural engineers, electrical engineers, PHE and other
consultants owing to social distancing and lockdown. The supply several goods and raw
materials critical to construction — such as tiles, electrical fittings, switches, pipes, construction
chemicals, Malaysian sawn timber, hardware items, glass Lifts, has impacted both at inter-state
and international level.
“In view of the above facts, the entire real estate industry is threatened with complete collapse.
We are at a complete loss as to how we will be able to keep our commitment to the customer of
timely delivery/possession, as notified under the WBHIRA registration document,” Mohta
added.
When contacted, housing secretary O S Meena said that it has examined the representation and
intering ,easures have taken. “Normal hearing under WBHIRA has been deferred and no
application for registration will be cancelled till April 30. We have also agreed to give more
time for the return of annual accounts of the project. For the rest we asked for supporting
documents,” he added.
____________________________________________________________________OTHER NEWS
Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/industry/delay-in-bank-loan-
Link
repayment-companies-point-to-act-of-god-seek-relief/74803096
Delay in bank loan repayment: Companies point to 'act of god',
seek relief
An Act of God, or force majeure in legal parlance, describes an event outside of human
control or activity, and is generally invoked in extreme circumstances where the business
has been affected by a natural calamity, epidemic or war.
Business owners from real estate, hospitality and tourism sectors have approached banks citing
the “Act of God” clause in their loan covenants to delay payments and seek restructuring of past
loans.
An Act of God, or force majeure in legal parlance, describes an event outside of human control
or activity, and is generally invoked in extreme circumstances where the business has been
affected by a natural calamity, epidemic or war.
“We have started receiving requests from several companies citing “Act of God” clause to
restructure loans and give leeway in payments. In some cases, these loans are upwards of Rs
200 crore,” said a banker adding that the coronavirus impact has started to show.
Bankers are hoping that the RBI gives an industry wide asset classification forbearance because
the banking industry is in a precarious position.
“Lenders are likely to be less affected in Q4, FY20 with the lockdown becoming widespreadonly in the last week of March this year,” said Ravikant Bhat, analyst at IndiaNivesh Securities. “The current lockdown shall affect every business and individual. Hence, the economic fallout shall require a comprehensive package based on needs of each affected segment.” ‘Regulatory Forbearance will Help’ The Reserve Bank of India and the government should be generous with any assistance they may provide to key industry sectors reeling under the total demand collapse caused by the spread of the coronavirus pandemic and the total government-ordered nationwide shutdown, industry officials said. “A regulatory forbearance will definitely help both lenders and aviation companies avert any genuine financial crisis,” said Subrata Ray, senior group vice president, ICRA Ratings. “Airlines with robust liquidity position would be able to sustain meeting repayments on schedules.” “Regulatory curbs over Covid-19 has triggered significant disruptions,” he said. ICRA has reviewed credit risks of aviation companies and has retained the outlook at negative for now. It will review the rating if any relief measures are announced by the government. The total fund-based aviation industry debt (excluding Jet Airways debt and the capitalisation of leases) is pegged at around Rs 40,000 crore, according to an Icra estimate. Airline revenues globally in 2020 is set to decline by 44% over 2019, the International Air Transport Association (IATA) said. “Revenue loss of $250 billion in 2020 over 2019… which is a 44% decline over 2019… Before any recovery takes place, airlines may run out of cash,” said Brian Pearce, chief economist at IATA. In February, IATA had estimated global airlines loss at $113 billion due to the pandemic. Banks, which are awaiting clear instructions from the RBI on asset classification, say that they will have to take a case-to-case view in case no forbearance is granted. The banking system had an outstanding exposure of Rs 45,394 crore to tourism, hotels and restaurants business, show RBI data until January end. Likewise, they also have an outstanding exposure of Rs 2.27 lakh crore to the commercial real estate sector. According to credit rating agency Crisil, airlines services is estimated to grow 3-4% this financial year. The growth will fall by 1-3% next financial year that begins from April 1. The virus effect will likely to be deeper for hotels industry as the sector growth is estimated to plunge by 15-20% next fiscal year compared with 4-5% expected this year.
“Given the banking sector had finally begun a recovery cycle with absolute level of gross bad loans beginning to decline, we believe efforts shall be made to ensure there is no relapse,” Bhat said. Any such relapse affects banks’ ability to do incremental business. A delay in bad loan recognition cycle to 180 days from 90 days can also be useful. Recently, the government raised excise duty on petrol and diesel. Aviation turbine fuel could well be spared from the increase. “The current social distancing measures will severely impact airlines, hotels, malls, multiplexes, restaurants and retailers, Crisil said in its report. “Lower footfalls and occupancies, decline in business volume and sub-optimal operating efficiencies will impact cash flows of companies in these sectors,” it said. Brokerage house Nomura in a report said it expects economic activity coming to a grinding halt with a near-nationwide lockdown. This will impair both the manufacturing and services engines of growth. “No one knows the end game to the financial stress that could be caused by the coronavirus, hence it is critical that borrowers, banks and regulators come forward with a generous heart to help each other in this hour of crisis,” said Rajesh Narain Gupta, managing partner at law firm SNG & partners. “The regulator should come forward to put such rules in place which are practical and support the restructuring / new arrangementss…,” he said. ________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 24, 2020
https://realty.economictimes.indiatimes.com/news/industry/real-estate-body-asks-
Link
for-deferment-of-home-loan-emi/74799529
Real estate body asks for deferment of home loan EMI
The National Real Estate Development Council (NAREDCO-UP) has written to Nirmala
Sitharaman, Finance Minister, asking them for relief for the sector in this tough time.
Real estate developers body are asking for deferment of housing loan instalments for 12
months, moratorium on project loans for 2 years, release of building plans and other approvals
which are being help-up due to payment of fees among other measures to support the real
estate industry in UP and Haryana.
The National Real Estate Development Council (NAREDCO-UP) has written to Nirmala
Sitharaman, Finance Minister, asking them for relief for the sector in this tough time.
“Due to Covid-19 impact, Housing sales are almost nil. There are no buyers in the market,
naturally value of housing prices is zero. We have asked for certain relief package from Finance
minister,” said
Supertech Chairman RK Arora, who is also as the presidents of Naredco- UP
In order to overcome the impact of the pandemic, NAREDCO has said that it is essential that all
the project loans disbursed by the banks, are allowed unconditional moratorium of 2 years
during which period, no project account should be treated as NPA and no recovery proceedings
should be initiated against any developer. It has also requested that All NCLT/DRT cases
against the developers are withdrawn.
To ease liquidity to retail home buyers who have taken home loans but due to pandemic
situation needs liquidity support, the body has asked for 12 months deferment for payment of
EMI towards home loan instalments. During this period waiver of additional interest, penal
interest may be allowed.
The Haryana chapter of Confederation of Real Estate Developers’ Associations of India
(CREDAI) has asked the Haryana government for the relaxation in rules and regulations for the
developers.
“The real estate sector contributes to 10% of the National GDP and is the second-largest
employer in the Country and due to this pandemic; the real estate industry would be drastically
impacted. We believe that relaxations would be in the larger interest of not only of the sector
but all stakeholders including the customers and in the absence of relaxations in rules and
regulations; the real estate industry would hit all-time low and suffer irreparable damage,” said
President, CREDAI Haryana, Kushagr Ansal.CREDAI has said that the sector is already facing acute shortage of construction materials due to import restrictions and shut down of state borders leading to supply-chain issues and heavy escalation in prices of materials. Construction sites have been locked-down due to the Covid-19 virus. “Untimely payment from the customers is another critical issue in the present market conditions and after this pandemic, the customers might not be in a position to make the payments and this would be a major setback for the sector. On the other hands, Developers are under extreme pressure from the authorities, financial institutions for meeting their deadlines and for payment of loan instalments on time,” it said. The body has asked for exemption of payment of interest on external development charges and internal development charges for one year starting a February 15. It has also said that process of necessary approvals for the development of a Project shall be taken up with urgency without the prerequisite of Bank Guarantee(s) and other charges. ________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 24, 2020
https://realty.economictimes.indiatimes.com/news/industry/coronavirus-impact-
Link
banks-brace-for-payment-defaults-missed-targets/74799430
Coronavirus impact: Banks brace for payment defaults, missed
targets
Bankers are also expecting the Reserve Bank of India (RBI) to come out with a
forbearance package so that accounts are not classified as NPAs for the next few years.
Banks are likely to face significant defaults in payment and miss internal targets as more and
more states announce lockdowns in the wake of the coronavirus pandemic, senior officials of a
number of lenders said on Tuesday. Bankers are also expecting the Reserve Bank of India (RBI)
to come out with a forbearance package so that accounts are not classified as NPAs for the next
few years.
"There should be some forbearance on account of cash flow mismatch. There will be many
defaults in the MSME, retail and related sectors," a senior United Bank of India official told .
"We are expecting the RBI to come out with such a package so that accounts are not categorised
as NPAs for at least the next two years," he said.
Prior to the virus outbreak, the state-run lender, which is set to be merged with Punjab National
Bank (PNB), was in profits.
"We wanted to close the financial year with a business figure of Rs 2.18 lakh crore. But because
of this development, there will be a shortfall," the official said.
On UBI's realisation from the resolution process through the Insolvency and Bankruptcy Code
(IBC), he said the bank's exposure to Bhushan Power was Rs 800 crore.
"But going by the current trends, that amount is not immediately forthcoming and it is a big
blow to the bank," he added.
An official of city-based UCO Bank said that due to the virus scare, pace of work in all its
branches has taken a major hit.
"This is a very tough quarter. Some recoveries are typically realised in the last few days of the
March quarter. That will be impacted," he said.
For UCO Bank, cases admitted before the National Company Law Tribunal (NCLT) total to Rs
15,811 crore, out of which the bank has realised around Rs 3,000 crore, the official said.
________________________________________________________________Newspaper/Online ET Realty (online)
Date March 24, 2020
https://realty.economictimes.indiatimes.com/news/industry/property-developers-
Link
vow-to-feed-labourers-amid-lockdown/74799464
Property developers vow to feed labourers amid lockdown
“All developers are trying to look after their labourers as a first priority,” Niranjan
Hiranandani, president of the National Real Estate Development Council, said by phone.
Property developers across India’s big cities have been asked to ensure their labourers have
enough to eat, even though construction may have halted under a government-imposed
lockdown to fight the coronavirus outbreak.
The Hiranandani Group has organized 15 days of food rations for more than 4,000 labourers
across sites. Oberoi Realty Ltd will continue to pay its staff, and Boman Irani, vice president at
the Confederation of Real Estate Developers’ Associations of India, said large contracting
companies, such as Larsen & Toubro Ltd and Shapoorji Pallonji group, have been asked to
provide for their workers.
“All developers are trying to look after their labourers as a first priority,” Niranjan Hiranandani,
president of the National Real Estate Development Council, said by phone. “We are also
sanitizing sites and providing labourers with soaps and sanitizers so that they can protect
themselves.”
India’s construction sector is the nation’s biggest job-creator, employing large numbers of
workers who are typically paid a daily wage in cash. These labourers often live on the build site
during a project, often with their families, and are part of India’s vast informal economy most
vulnerable to the shutdown.
Hiranandani said he isn’t yet aware of how specifically developers will pay for this food.
India’s government on Monday allowed companies to fight the coronavirus outbreak by dipping
into a pool of cash firms are mandated to keep aside for Corporate Social Responsibility
spending, but Hiranandani said developers will spend irrespective of any benefits.
Developers expect the work shutdown will hit sales in coming quarters, worsening the outlook
for an industry already hit by government policies including the cash ban in 2016, a new goods
and services tax, and stricter completion rules. Hiranandani said the sector has sought relief
such as the ability to reschedule loan repayments, a one-time rollover for debt restructuring, and
deep interest rate cuts.
“I believe there will be a delay in sales. But we don’t deal in perishable commodities so we
don’t lose anything,” said Oberoi Realty chairman Vikas Oberoi. “Purchasing will all come
back once all this settles.”
________________________________________________________________Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/commercial/marginal-
coronavirus-impact-on-office-spaces-co-working-players-to-be-disrupted-
Link
icra/74803275
Marginal coronavirus impact on office spaces, co-working players
to be disrupted: ICRA
Further, there could be re-evaluation of long-term office space planning by companies to
tackle such exigencies in future. The rental expenses typically form 1-2.5% of revenues of
the office space tenants.
The effect of coronavirus is expected to have a differential impact on the commercial real
estate (CRE) sector in India. ICRA believes that the impact on office space real estate players
will be marginal.
Some of the states have already enforced closure of offices while many others have strongly
advised the same; however, in contrast to the retail players, the revenue impact for office space
tenants due to closure of office spaces is expected to be limited.
Furthermore, rental expenses form comparatively smaller proportion of the total cost structure
of office space tenants. The rental expenses typically form 1-2.5% of revenues of the office
space tenants. Better technological support has enabled large number of office tenants to
provide work-from-home facilities to employees and hence operational disruption is expected to
be limited.
Nevertheless, the rating agency believes that new leasing discussions are getting significantly
impacted and the situation is likely to continue in Q1 FY2021. Therefore, the ramp-up of
leasing for sub-optimally occupied and recently completed properties will get delayed. In case
of an extended shutdown or subdued economic activity, the properties with weak counterparties
may experience delays in rental receipts.
Additionally, operational difficulties and administrative issues like curtailed movements,
impacted bank operations, unavailability of signing authorities may also delay the rental
receipts. Hence, ICRA believes that even though the probability of loss revenue is low for office
space players, the presence of liquidity buffers will remain critical to sail through the possible
cash flow mismatches.
Further, there could be re-evaluation of long-term office space planning by companies to tackle
such exigencies in future.
“Notwithstanding the short-term disruption, we believe that the commercial real estate sector
will continue to attract adequate interest from investors and tenants alike in the medium to long
term. ICRA, at present, does not foresee any structural change in the office space segment dueto the ongoing COVID-19 induced crisis,” said Anand Kulkarni, assistant vice president and associate head (Corporate Ratings), ICRA. The co-working spaces segment is likely to experience comparatively higher impact as the tenants typically are start-ups or smaller and financially weaker entities. These tenants would prefer to negotiate on the rental payments as the share of rental expenses is typically higher for them than a normal office space. Due to the ongoing crisis, the agreements between the co-working space operators and tenants may also undergo changes, thus shortening the tenures or seeking more flexibility. Probability of delays in rental receipts in co-working spaces might be higher over the next few months, considering weak counterparties. Structurally, the co-working space operators might face challenges going forward in case a sizeable number of target clients get habitual to the work-for-home set-ups and hence the overall demand decelerates. Possible changes in lease agreements like preference for extremely short-term agreements (ranging in few days) as against the current practise of monthly or quarterly agreements may also force the co-working spaces to re-strategise their operations. ________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/industry/realtors-click-on-
Link
digital-channels-for-launches/74790731
Realtors click on digital channels for launches
Some large developers like Godrej Properties, Total Environment Building Systems and
Prestige Group have launched digital site tours, email document confirmations and
verifications and even features that lead to online closure of deals.
Realty developers are now marketing their new launches using digital channels even as the
outbreak of Covid-19 and the expected lower number of homebuyer visits at their sales offices
offer no respite.
Some large developers like Godrej Properties, Total Environment Building Systems
and Prestige Group have launched digital site tours, email document confirmations and
verifications and even features that lead to online closure of deals.
“Many brokers are closing deals via video conferencing and WhatsApp tours since clients are
hesitant to come out; however, we have to invest before March 31. We closed a couple of deals
on Sunday,” said Bhavesh Kothari, CEO, Property First, a real estate broking firm based in
Bengaluru.
Many developers are sceptical and have their reservations around the launch of new projects
considering the current situation. New project launches are expected to dip this festive season;
however, there will be a few exceptions like the projects which are already in the soft-launch
stage and have already undergone a fair amount of marketing spend.
“Most of the developers are in wait-and-watch mode. Developers who have certain financial
obligations have no option but to venture out in the market with their offerings during this time
are looking seriously at digital as a channel than just sitting tight,” said Anckur Srivasttava,
chairman, GenReal Property Adviser. “This hiatus is expected to be continued until after the
summer season.
The government advisory to avoid social activities is certainly going to impact site visits and
housing sales but these kind of digital launches will boost developers’ confidence and help
revive the real estate sector on the back of lower home loan rates and reduction in stamp duty in
some states.
“Earlier, we had decided to do a physical launch with channel partners and brokers. But now
due to the Covid-19 situation, we will be conducting a digital launch where we will accept
requests and enquiries from customers online. We will then be providing time slots to the
customers for site visits where there will be no crowd gathering but every customer will be
attended on an one-on-one basis as per their respective allotted time,” said Anuj Khetan,director, Vijay Khetan Group that is planning to launch a new project in Mumbai’s Andheri suburb on the occasion of Gudi Padwa. The previous two quarters have been relatively better in terms of sales momentum. Home sales improved over the last two quarters on higher confidence levels among homebuyers and realty developers. The top 35 property markets, including tier I and II cities, recorded a 3% on-year and 5% sequential growth in sales, with 27 cities witnessing increased sales in the quarter ended December. ________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/industry/labour-minister-asks-
Link
cms-to-provide-financial-aid-to-3-5-crore-construction-workers/74802719
Labour Minister asks CMs to provide financial aid to 3.5 crore
construction workers
It is mentioned in the letter that about Rs 52,000 crore is available as cess fund collected
by states and UTs, and about 3.5 crore construction workers are registered with these
construction welfare boards .
Labour Minister Santosh Gangwar on Tuesday asked all state chief ministers to provide
financial aid to over 3.5 crore construction workers from Rs 52,000-crore construction cess
available with them amid Covid-19 outbreak. An advisory has been issued on March 24, by
Gangwar to all chief ministers, Lieutenant Governors of all the states/union territories.
In the letters, the minister said: "Under Section 60 of the Building and Other Construction
Workers (BOCW) Act, 1996, all states/UTs have been advised to transfer funds in the account
of construction workers through DBT (direct benefit transfer) mode from the cess fund
collected by the Labour Welfare Boards under the BOCW cess Act."
It is mentioned in the letter that about Rs 52,000 crore is available as cess fund collected by
states and UTs, and about 3.5 crore construction workers are registered with these construction
welfare boards .
The minister has stated in the letter that in this challenging situation, it is imperative that we
devise probable mechanism to support unorganised workers, who sustain their livelihood on
daily wages.
The minister also said that state building and construction workers welfare boards have
collected sufficient funds.
The cess has been levied and is being collected at 1 per cent of the cost of construction as
notified by the central government in its official gazette.
The BOCW Welfare Cess, 1996, provides for levy and collection of cess at such rate not
exceeding 2 per cent, but not less than 1 per cent of the cost of construction as the central
government may notify.
The cess at the rate is collected by states and union territories, and is utilised for the welfare of
building and other construction workers by the State Building and Other Construction Workers
Welfare Boards constituted under the Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996.
_____________________________________________________________________________Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/industry/credai-wants-maharera-
Link
to-push-deadline/74802828
Credai wants MahaRERA to push deadline
Developers from Pune said workers have left for their respective hometowns and that
work had ground to a halt.
The Confederation of Real Estate Developers Association of India (Credai) has written to
the Maharashtra Real Estate Regulatory Authority (MahaRERA) to extend the deadline for
completion of projects by a month in the face of the nationwide lockdown.
“Developers cannot meet deadlines in the current pandemic situation,” Credai office-bearers
said.
Developers from Pune said workers have left for their respective hometowns and that work had
ground to a halt. “We cannot meet our deadlines as we cannot procure anything for the
construction. In Pune city, the registration offices are closed, so there are no registrations too,” a
builder said.
MahaRERA has, meanwhile, adjourned cases, scheduled for hearing between March 16 and
March 31, except for “very urgent matters”, due to the spreading coronavirus pandemic.
________________________________________________________________Newspaper/Online ET Realty (online)
Date March 24, 2020
https://realty.economictimes.indiatimes.com/news/industry/covid-19-impact-
Link
mumbai-delhi-property-purchases-see-huge-drop/74790671
Covid-19 impact: Mumbai, Delhi property purchases see huge drop
The report said the impact has been most drastic in Mumbai and Delhi, while the situation
in Bengaluru is slightly better.
The Covid-19 is yet another black swan moment in India’s residential real estate market which
will lead to further dip in sales and postponement of launches, brokerage firm ICICI Securities
said.
“Since early March 2020, the Covid-19 scare has led to buyer footfalls falling off dramatically
in the largest markets of MMR (Mumbai Metropolitan Region) and NCR and to a lesser extent
across South India. The prospect of falling sales in ongoing projects and deferment of upcoming
launches threatens to become the next Black Swan for an already weak residential market,” it
wrote in a report last week.
The report said the impact has been most drastic in Mumbai and Delhi, while the situation in
Bengaluru is slightly better. And it is expected to be further exacerbated now as the country is
asking citizens to avoid stepping out to prevent the spread of the pandemic.
“The slowdown since end-February is apparent; and while site visits are marginally down, the
decision-making process is hugely delayed,” said National Real Estate Development Council
president Niranjan Hiranandani. The sector has been down for nearly six years now as buyers
stay away from a tepid market. Demonetisation, the RERA Act, GST and the NBFC funding
crisis has dealt a body blow to the industry. Many developers have changed track and are
focusing on commercial office space, which have been yielding better returns.
Following the coronavirus crisis, developers with strong balance sheets will be best placed to
weather the storm. “With residential real estate typically being a ‘touch and feel’ high ticket
purchase, any extended spell of social distancing owing to Covid-19 may lead to cash flow
management issues in ongoing projects where a fall in collections may lead to a drop off in
construction activity. Further, new launches planned in April-May 2020 will be pushed back till
at least September 2020 to coincide with the festive season,” ICICI Securities said.
“The industry was hoping to recover from this prolonged slowdown in 2020. The health
contagion of Covid-19 disease, however, has the potential to put some brakes on India’s real
estate market, given the anticipated slump in demand,” industry chamber Ficci said.
_______________________________________________________________Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/industry/covid-19-about-4-lakh-
Link
construction-workers-in-delhi-to-get-rs-5000-relief/74803010
Covid-19: About 4 lakh construction workers in Delhi to get Rs
5,000 relief
Around 4 lakh construction workers are registered with Construction Workers Welfare
Board (CWWB) of the Delhi government. All of them will be provided the financial
assistance from CWWB Fund.
In a major relief to lakhs of people, chief minister Arvind Kejriwal on Tuesday announced
financial assistance of Rs 5,000 to each construction worker hit by the coronavirus lockdown
that has halted construction work, besides other non-essential activities, in the capital.
Around 4 lakh construction workers are registered with Construction Workers Welfare Board
(CWWB) of the Delhi government. All of them will be provided the financial assistance from
CWWB Fund.
According to sources, the government is also considering developing a mechanism for
identification and fund disbursal for those construction workers who are not registered with theBoard and other daily wagers who have lost their livelihood due to the unprecedented lockdown. The government is also increasing the number of night shelters so that those who have no source of earning now can get food. It will also distribute food at different places for people affected by the lockdown. In a digital press conference, Kejriwal said that no new case of coronavirus had been reported in the last 40 hours in Delhi. But, leaving nothing to chance, the Delhi government has constituted a team of five doctors which will review the city’s preparedness for handling the situation if we reach the third stage of community transmission. The committee will submit a report within 24 hours to the chief minister on the steps required to deal with this and suggest ways to strengthen the system. “We have started preparations to build a foolproof health system to combat the situation if we ever get into stage three of this pandemic. We have to be fully prepared in terms of medical support," Kejriwal said. "In the last 40 hours, there has not been a single new coronavirus positive case in Delhi. Earlier, we had 30 such positive cases, and among them, many people are getting better and going home. Till now five people have survived and gone home. Currently, we have only 23 positive cases in Delhi,” Kejriwal said, asking people to observe the lockdown strictly since otherwise cases may increase. Kejriwal urged people not to discriminate against those who work in airlines, hospitals and other coronavirus sensitive jobs. “I have received complaints that somewhere in Delhi people did not allow a pilot to enter the colony because they thought he could be affected by coronavirus and the same has happened in some other cases. This is something absolutely unacceptable....doctors, nurses, pilots and air hostesses are our responsibility... These are the people who are working relentlessly to give you proper medical help and support and they should be welcomed,” he said. In response to another call by the chief minister, many landlords have announced waiving of rent for tenants for now. Kejriwal named several such people and appealed to others to do so. One such landlord, Raj Bainsla, and others have announced publicly that they will not collect rent for the month of March. Tens of thousands of tenants in Delhi work in the unorganised sector and their livelihood has been badly hit. Kejriwal urged people to send those who are unable to get food due to the lockdown to night shelters. "We have already started distributing food at all the night shelters where any person can come and eat. Many people have said that they will ensure not a single person in their area stays hungry,” said Kejriwal. ________________________________________________________________
Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/infrastructure/coronavirus-
Link
lockdown-to-delay-chennai-metro-project/74802678
Coronavirus lockdown to delay Chennai metro project
CMRL officials said more than 80% of the workers will not be turning up for work
during the lockdown from Tuesday till March 31, which is likely to delay the project.
The state lockdown set to begin from Tuesday evening is likely to hit construction of Chennai
Metro Rail’s 9km phase-1 extension from Washermenpet to Wimco Nagar. Operations on the
line were expected to begin by mid-2020.
CMRL officials said more than 80% of the workers will not be turning up for work during the
lockdown from Tuesday till March 31, which is likely to delay the project.
A metro rail official said except for some critical work in the underground section and in the cut
and cover that links the underground tunnels with the elevated corridor, work may come to a
halt in the rest of the stretch. More than 1,000 workers are engaged to work on the line.
“We have instructed workers to stay home. So, workers will be present only to remove water
from the tunnels and finish the civil work in the cut and cover section. The safety of our
workers is more important to us now than the project,” a metro rail official said. “There will be
another round of discussions on Tuesday. We are monitoring the health of our workers.” The
stretch from Washermenpet to Wimco Nagar has eight stations, including two under ground.
On Monday, the chief minister announced that the state will be under lockdown from 6pm on
Tuesday till March 31, following the Centre recommending it to prevent spread of Covid-19.
Section 144 of the CrPc will be in force to prevent people from gathering in any place.
The outbreak of Covid-19 in China and many European countries had already delayed the
project by two months as electrical equipment, elevators and other parts required for installation
of systems like platform screendoors are imported.
The line, which was planned to be opened in June 2020, faced the first hurdle when CMRL had
to terminate contract with IL&FS Transportation Networks Limited over delay in completion of
underground stations at Sir Theagaraya College and Korukkupet.
Earlier this month, officials operated a motorised trolley along the 9km stretch to check the
track alignment. They had planned to conduct trial runs by operating a diesel locomotive in
April followed by metro trains late next month or in May.
________________________________________________________________Newspaper/Online ET Realty (online)
Date March 25, 2020
https://realty.economictimes.indiatimes.com/news/residential/societies-must-
Link
watch-people-coming-from-abroad-afzal-amanullah-bihar-rera/74802847
Societies must watch people coming from abroad: Afzal
Amanullah, Bihar RERA
Nodal officer for Covid-19 in Bihar, Dr Ragini Mishra, said people who have returned
from other countries have already been asked to register for home isolation by calling on
‘104’.
Housing societies should keep strict vigil on people coming from abroad, especially countries
affected by Covid-19, and ask them to confine themselves in their rooms for two
weeks, RERA (Bihar) chairman Afzal Amanullah said.
“Apartment owners association and security guards should be proactive to find out cases where
people try to hide their recent travel history. Even family, friends and neighbours should come
forth in identifying such people and report it to the authorities,” he said.
Nodal officer for Covid-19 in Bihar, Dr Ragini Mishra, said people who have returned from
other countries have already been asked to register for home isolation by calling on ‘104’. “All
those returning from abroad have been told to stay in home isolation for 14-days and update us
about their condition on a daily basis,” she said.
Asked what to do if anyone violates the norms, Mishra said action can be taken against such
people under the Bihar Epidemic Diseases, Covid-19 Regulation 2020. “Anybody who comes
across people having arrived from abroad and roaming around before completing the 14-days
quarantine period can file a complaint against them,” she said.
Rakesh Shrivastava, secretary of a residential society on Digha-Danapur Canal Road, said a
resident who returned from Saudi Arabia was spotted roaming around. “Even though he
completed his 14-day quarantine in Delhi, we have asked him to stay indoors for another 14
days. Besides, proper sanitization of all the buildings in the society has been done. Elevators,
stairs and corridors were also cleaned,” he said.
Rajesh Mishra of Ramnagari Mor said no precautionary measure has been taken by his society’s
committee members. “A student returned from China in February but no instructions were
given to her by the society,” he said.
Realtors, on the other hand, advised the management committees to keep a check on people
coming back from abroad. Sachin Chandra, president of Bihar chapter of Builders’ Association
of India (BAI), said the management committees need to be extra conscious in the wake of the
global Covid-19 outbreak.Patna civil surgeon Raj Kishore Choudhary said thousands of people were reaching home. “It is not possible to keep a check on everybody. As a citizen, it is the duty of everyone to stay in isolation for 14 days and report us in case they get any symptoms,” he said. ________________________________________________________________
You can also read
