Construction in limbo

THE ongoing lockdown has brought economic activity to a standstill across the country. The exodus of workers, particularly daily wagers, has adversely impacted the construction industry and the real estate sector. It is estimated that the completion of over 15 lakh housing units in New Delhi, Mumbai and five other top cities is set to get delayed. The demand for cement, a key construction material, has hit a trough. Amid this dismal scenario, the Federation of Indian Chambers of Commerce & Industry (FICCI) has urged the government to allow the resumption of work at construction sites with strict safety measures so as to prevent huge financial losses. The apex business organisation claims that labourers staying back at these sites have been provided with basic facilities, while precautionary steps such as social distancing, handwashing and the use of masks are being taken. The government should assess the ground situation and grant permission without making a compromise on the requisite safety standards. Riders have to be imposed: negligence of the builders and developers that endangers public health should lead to stoppage of work, besides the initiation of criminal proceedings against them.

The Centre recently directed states to use the unutilised sum of Rs 31,000 crore, collected as cess under the Building and Other Construction Workers’ Welfare Fund, to provide relief to about 3.5 crore registered labourers. States such as Punjab, Delhi and Himachal Pradesh have already done the needful, but this dole leaves out the unregistered construction workers, numbering around 1.5 crore in the country. They should be factored in for handing out compensation.

The situation is also worsening for the Indian export industry as China is gradually recovering from the coronavirus crisis and striving to put its economy back on track. Unless manufacturing units in India start humming with activity soon, Indian products run the risk of losing their global markets to China. The government’s decision to allow exporters having advance licences to ship pharmaceutical formulations that were placed in the restricted category a month ago is a welcome step. More such confidence-building measures are needed to help the industry get back on its feet.

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