The lockdown has impacted the construction sector significantly. While some laborers are stationed on the construction site where developers are taking care of their needs, some of them have already moved to their native place. This had led to the re-acquiring labor force's unimaginable challenge, which would further delay the construction, and the builders would have to suffer considerable losses as monsoons approach. To ease this difficult situation, the National Association of Real Estate Developers Council (NAREDCO) has proposed the government partially lift the lockdown on the construction site to continue the work while implementing all safety guidelines to ensure worker's health. 

Government Relief Package to the Construction Sector

Due to exponential losses across sectors, the country's economy is under immense pressure. With rising unsold inventories, liquidity crunch and now with COVID-19, real estate was under constant stress. Real estate developer’s body, the NAREDCO has requested a $200 billion Government relief package to ease the effect of the virus on various sectors in the economy. Considering that the real estate sector accounts for 6-7 percent of India's GDP and employs almost 10-11 percent of the population, the body has urged the government to focus on developer demand and to come up with an economic package keeping in mind the current status of the real estate.

The Coronavirus pandemic halted the real estate sector, thus disrupting the national businesses. While RBI and the Minister of Finance took several steps to ease the burden on consumers and businesses, NAREDCO requested that all operations of the NCLT (National Company Law Tribunal) be suspended for the next six months in the light of India's economic downturn. The aim is to provide a breathing space to businesses that have faced huge losses due to rapidly decreasing stock prices.

A unity among peoples is visible during these unprecedented times, in order to tackle COVID-19. The proposed NAREDCO relief package would deal with the current crisis while taking care of the laborers so as not to risk their health and safety. As a result of which the business cycle can be recovered without further loss.

BY: Shailaja K