Reverse migration during COVID impacted real estate projects: Govt
Apr 07, 2022
New Delhi [India], April 7 : Real estate projects across the country were adversely impacted due to the reverse migration of construction workers during COVID-19 pandemic lockdowns, Union Minister of State for Housing & Urban Affairs Kaushal Kishore said on Thursday.
In view of the situation created by the pandemic COVID-19 reverse migration of labourers, including construction workers, to their native places and break in supply chains of construction material, construction activities of real estate projects across the country were adversely impacted, the minister said in a written reply in the Lok Sabha.
"However, exact details of the quantum of job loss and financial loss in the Real Estate Sector are not maintained centrally by the Ministry of Housing and Urban Affairs (MoHUA)," the minister added.
The minister informed the lower house of the parliament that the government has taken a number of steps to support the real estate sector.
The Ministry of Housing and Urban Affairs had issued an advisory to all States and Union Territories (UTs) and their Regulatory Authorities for extension of completion date or revised/extended completion date for all real estate projects registered under Real Estate (Regulation and Development) Act, 2016 [RERA] for a period of 6 months, and further extension of 3 months, if the situation so demands.
Further, MoHUA recommended to the State Governments and UT Administrations to consider reduction in stamp duty rates on transaction of sale/purchase of immovable property for a specific period of time to encourage the home buyers and sellers to expedite their transactions. Many States/UTs responded positively by reducing the rates of stamp duty on transactions involving sale/purchase of immovable property.
In order to give relief to homebuyers, developers and other borrowers, the Reserve Bank of India permitted lending institutions to grant a total moratorium of 6 (3+3) months on payments falling due between 1st March, 2020 to 31st August 2020, Kishore said.
Moreover, infusion of Rs 75,000 crore for Non-Banking Financial Companies (NBFCs), Housing Finance Companies (HFCs) and Micro Finance Institutions (MFIs) and Rs 18,000 crore additional outlay for Pradhan Mantri Awas Yojana - Urban have also helped in the revival of construction and realty sector, he said.
