With the coronavirus outbreak, the near-complete lockdown and social distancing have affected many businesses in India, including real estate. Construction activities throughout India have slowed down, which has resulted in project completion delay, contributing to cost overruns and impact on the workforce. To manage the uncertainties resulting from this scenario, recently, the government of Telangana has announced that real estate developers in Greater Hyderabad to undertake construction activities by securing the required material and engaging their workforce. This will enable the real estate sector to unfold its economic movement in a staggered manner.

Ministry of Home Affairs Permitted 'in situ' Construction Work

Chief Secretary Somesh Kumar attended the teleconference on Saturday with senior officials, the Confederation of Real Construction Developers' Associations of India (CREDAI), and Telangana Real Estate Developers Association of India (TREDAI) and declared permission to resume construction activity in Hyderabad. The proposal came a day after guidelines were released by the Ministry of Home Affairs (MHA), allowing for in situ construction in urban areas, including those falling in red zones.

What is in situ construction?

In situ is often referred to as "in situ" or "in-situ" as a Latin term widely used in the construction industry to mean "on-site," "in place" or "in position." It refers to work done on the building site itself, often in the finished state, as opposed to working in an off-site location as with prefabrication or pre-assembly techniques.

The Chief Secretary ensured the state administration with all appropriate assistance to the project developers for the construction activities. He instructed builders to instill trust among workers, particularly migrant workers, through counseling, expanding incentives, services, and medical attention. He said every effort should be made to make sure the workers feel comfortable. 

Transporting Construction Materials

Somesh Kumar said the government would take measures at the builder's request to ensure a smooth supply of steel, cement, sand, and bricks. Director-General of Police (DGP) Mahender Reddy said three police commissioners would ensure smooth movement of construction goods vehicles. Once the construction process resumed, the much-needed cash flow will be ensured for laborers to get wages and developers. Since many homebuyers use loans to finance their real estate purchases, the resumption of construction activity would enable developers to increase demands on their customers who, in turn, would demand disbursement from banks, leading to a credit take-up.

The government permit is expected to offer relief to the real estate sector with the commencement of economic activity and employment opportunities for millions of daily-wagers.

BY: Shailaja K