16 - 04 - 2020

CREDAI Bengal Daily News Update | 16.04.20

WEST BENGAL NEWS

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Newspaper/Online The Times Of India (Online)

Date April 16, 2020

OTHER NEWS

Home ministry allows construction of projects within municipal

limits

These activities however will not be permitted in containment zones within hotspots. If

any new area is included in the category of the containment zone, the activities will be

suspended.

Ministry of Home Affairs on Wednesday allowed continuation of works in construction

projects, within the limits of municipal corporations and municipalities, where workers are

available on site and no workers are required to be brought from outside.

The ministry has allowed select necessary activities from April 20, 2020. However these

additional activities will be operationalised by states/union territories/district administrations

based on strict compliance to the existing guidelines on lockdown measures.

Construction of roads, irrigation projects, buildings, and industrial projects, including MSMEs,

in areas outside municipal limits and all kinds of projects in industrial estates have also been

allowed.

Movement of all personnel travelling to place of work and back in the exempted categories as

per the instructions of the state/union territory are allowed.

All industrial and commercial establishments, work places, offices, etc shall put in place

arrangements for implementataion of SOP before starting their functioning. These include:

All workplaces shall have adequate arrangements for temperature screening and provide

sanitizer

They shall work at a gap of one hour between shifts to ensure social distancing

All organization shall sanitize their work places between shifts

The district magistrate will deploy executive magistrates as incident commanders to implement

these containment measures.

These activities however will not be permitted in containment zones within hotspots. If any new

area is included in the category of the containment zone, the activities will be suspended.

Any person violating these lockdown measures will be liable to be proeeded against as per the

Newspaper/Online ET Realty (Online)

Date April 15, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/home-ministry-allows-

construction-of-projects-within-municipal-limits/75163283

provisions of section 51 to 60 of the Disaster Management Act 2005, besides legal action under

Sec 188 of the IPC and other legal provisons as applicable.

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Construction contracts plunge 43% in FY20: Report

The problem was more pronounced in the final quarter of the year, as the government

contracts came to an almost full standstill as it cut spending to maintain fiscal numbers

under check, and the final week saw the entire nation coming to a halt due to the

lockdown.

Infrastructure sector activity witnessed a decline of 43 per cent in FY20, following financial

troubles at the national road builder NHAI and the massive contraction in March due to the

lockdown, according to a report.

The problem was more pronounced in the final quarter of the year, as the government contracts

came to an almost full standstill as it cut spending to maintain fiscal numbers under check, and

the final week saw the entire nation coming to a halt due to the lockdown.

The overall contract awarding activity fell 26 per cent year-on-year in March.

The power distribution contracts plummeted 77 per cent on an annualised basis; real estate

awards fell 35 per cent; infrastructure contracts slipped 43 per cent; irrigation awards nose-

dived 66 per cent and water supply awards dipped 29 per cent, show the numbers collated by

the brokerage Emkay Global.

The only saving grace during the month was power equipment, which rose 65 per cent year-on-

year, and pipelines segment that remained at the same level as power equipment awards.

The road segment saw a paltry Rs 340 crore of orders bagged by L&T in March.

As a result, the total value of tenders published in March was down 48 per cent on an

annualised basis and a full 17 per cent month-on-month.

Steep plunges in awards on an annualised basis were seen in roadways (82 per cent), irrigation

(82 per cent), Railways (57 per cent), real estate (41 per cent) and fresh hospital contracts were

down a full 41 per cent.

However, community services rose 25 per cent on an annulaised basis, water supply saw 83 per

cent more contracts being awarded over the past year, power distribution saw 28 per cent

growth and water treatment awards grew almost three times, clipping at a full 283 per cent year-

on-year.

Newspaper/Online ET Realty (Online)

Date April 15, 2020

Link https://realty.economictimes.indiatimes.com/news/infrastructure/construction-

contracts-plunge-43-in-fy20-report/75161940

Major orders finalised in the month include three hybrid annuity mode contracts under

Bharatmala Pariyojana of the National Highways Authority of India.

They are the Rs 2,100-crore contract won by PNC Infratech for four-laning of the Aligarh-

Kanpur section of NH-91 in Uttar Pradesh; the Rs 1,500-crore contract by Adani Enterprises-

Navayuga Engineering JV for six-laning of the Vijaywada bypass from Gollapudi to

Chinnakakani in the Vijayawada- Gundugolanu section of NH-16 in Andhra; and the Rs 1,500-

core contract won by PNC Infratech for four-laning of the Jagdishpur-Faizabad section of NH-

330A in UP.

"With the fiscal situation of both the Centre and states already worsening and further pressure

likely due to the Covid-19 impact, we are now increasingly cautious on FY21 order inflows,"

warns the report.

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Covid-19 hotspots Mumbai, Pune unlikely to benefit from relief to

building projects

Mumbai Metropolitan Region (MMR) and Pune have both been declared as coronavirus

hotspots. The maximum construction projects are also in these regions.

The revised guidelines regarding ongoing construction projects issued by the Centre on

Wednesday has come as a huge relief to the builders as labourers stationed at these sites can

now commence work on building projects. However, the new guidelines said such work cannot

be carried out in areas designated as Covid-19 hotspots.

Mumbai Metropolitan Region (MMR) and Pune have both been declared as coronavirus

hotspots. The maximum construction projects are also in these regions.

Anuj Puri, chairman of ANAROCK said, "The fact that Covid-19 hotspots will not be able to

resume activity from April 20 is a dampener for markets such as MMR - a highly-impacted

zone, which, as per ANAROCK data, currently has the highest under-construction residential

stock of nearly 4.65 lakh units. This accounts for 30% of the overall 15.62 lakh under-

construction stock across the top seven cities."

He added, "As far as construction activity in non-hotspots is concerned, developers will need to

focus on resuming construction on projects that are already nearing completion and have a

completion deadline within 2020."

However, developer Niranjan Hiranandani said there was no blanket ban in the entire MMR

region and Pune. "There are pockets within these regions which have been declared as hotspots.

Several of these hotspots have been designated and then removed from the list. So, construction

can commence in places within MMR that are not hotspots,’’ he said. Hiranandani, who is

national president of NAREDCO, a body representing builders, said he has 4,000 labourers

stationed at his projects due to the lockdown. ``There are many such project sites where

construction can commence,’’ he added.

“The relaxation has come at the right time as the situation was very grim to keep construction

workers at the site afloat. With this order, the economic drivers of the country will start moving

again, even as we extend the lockdown. Considering the estimated loss of Rs. 26,000 crore per

day to the Indian economy as a result of the lockdown, this relaxation in lifting of lockdown is a

constructive step,’’ said Hiranandani.

Newspaper/Online ET Realty (Online)

Date April 16, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/covid-19-hotspots-

mumbai-pune-unlikely-to-benefit-from-relief-to-building-projects/75172648

According to Pankaj Kapoor of Liases Foras, a real estate research firm, there are 4,155 projects

in the MMR with 6.39 lakh flats under construction at present. "The unsold stock is about 2.93

lakh units. Builders already under huge debts because their cash flow has stopped and they will

not be able to service their loans," he said.

Meanwhile, MCHI-CREDAI, which represents builders in the state, urged the state government

to reduce stamp duty to 1% on all property transactions for the next four months and other sops

for the ailing industry. President Nayan Shah said, “The entire Real Estate fraternity is currently

caught up in an unprecedented scenario which the economy has never witnessed before. In the

midst of an economic disruption, real estate has suffered extensively and needs critical

intervention from the Maharashtra government for its survival. We also request the authorities

to share a stimulus package to alleviate fears of job loss in the industry, with lakhs of workers

directly or indirectly dependent of the industry.”

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No material or workers to start construction: Noida builders

Developers also said that getting labourers to the construction sites would be another

problem, with the majority of migrant workers returning to their homestates due to the

Covid-19 lockdown.

Though the government has allowed resumption of construction activity at non-Covid-19

hotspots from April 20, builders in Noida have made it clear that they will not be able to restart

work during the lockdown as they neither have raw materials nor workers on site.

“We are not restarting any construction work unless the entire supply chain is opened. This is

because given the current situation, we will not be able to source raw materials. It will take time

to restart projects,” Credai (western UP) vice president Amit Modi said.

Developers also said that getting labourers to the construction sites would be another problem,

with the majority of migrant workers returning to their homestates due to the Covid-19

lockdown.

“Only those builders with labourers on project sites can restart construction activity. When it

comes to our projects, we can’t start them because we need a variety of workers — carpenters,

masons, plumbers, bar-binders. They are not available on site,” RK Arora, president of builders’

body Naredco-UP, said.

Pankaj Bajaj, president of Credai-NCR, also echoed Arora’s concerns. “More than 200 different

kinds of raw materials go into construction and the supply chain is entirely shut now. There are

no labourers at construction sites. Also how will the execution staff reach site? So we will have

to wait until the lockdown is lifted.”

Real estate experts also found no justification in the government’s guideline regarding

resumption of construction at non-Covid hotspots. “It didn’t take into consideration the fact that

about 80% of the 44 million workforce in construction industry are migrants,” said Anuj Puri,

chairman of Anarock property consultants.

In a relief to builders, UP-Rera on Tuesday gave a three-month extension on completion and

registration deadlines. All projects, which were due for completion between March 31 and

December 31 this year, have now been given a 90-day relaxation due to the Covid-19

lockdown.

The regulator will also start hearing cases through video-conferencing after May 3, in the wake

of proposals by realtors’ bodies Credai and Naredco.

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Newspaper/Online ET Realty (Online)

Date April 16, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/no-material-or-workers-

to-start-construction-noida-builders/75172598

Realtors urge Maharashtra government to reduce stamp duty to

1% for four months

"We have sought one per cent reduction in stamp duty for four months, which will

provide the much-needed fillip to the sector and encourage home buying in the MMR,"

Credai-MCHI President Nayan Shah said in a statement.

Developers' association Credai-MCHI on Wednesday urged the Maharashtra government to

reduce stamp duty to 1 per cent for the next four months to spur demand in the real estate sector

amid the Covid-19 crisis.

It also sought a stimulus package from the state government to save jobs.

"The entire real estate fraternity is currently caught up in an unprecedented scenario which the

economy has never witnessed before. The sector has suffered extensively and needs critical

intervention from the Maharashtra government for its survival.

"We have sought one per cent reduction in stamp duty for four months, which will provide the

much-needed fillip to the sector and encourage home buying in the MMR," Credai-MCHI

President Nayan Shah said in a statement.

He further said the current crisis will lead to extensive job and business losses in the real

estate industry, which is one the largest employment generating sectors and supports nearly 150

allied industries.

"We also request the authorities to share a stimulus package to alleviate fears of job loss in the

industry, with lacs of workers directly or indirectly dependent of the industry," Shah said.

A day after Prime minister Narendra Modi announced the second phase of lockdown till May 3,

the Ministry of Home Affairs on Wednesday came out with a list of economic activities that

will be permitted after April 20 in non COVID-19 hotspot areas.

Maharahstra has reported around 2,800 COVID-19 cases so far with nearly 178 deaths, which is

the highest in the country.

The developers' association also sought reduction in stamp duty on development agreement,

joint venture and joint developments for the next one year.

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Newspaper/Online ET Realty (Online)

Date April 16, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/realtors-urge-

maharashtra-government-to-reduce-stamp-duty-to-1-for-four-months/75172497

Decision to resume construction works from April 15 stands

cancelled: UP Deputy CM

"The decision to resume construction works from April 15 in Uttar Pradesh stands

cancelled in view of PM Narendra Modi's address today," Maurya told ANI.

Deputy Chief Minister Keshav Prasad Maurya on Tuesday said that the decision to resume

construction works from April 15 in Uttar Pradesh has been revoked after Prime

Minister Narendra Modi announced the extension of lockdown till May 3.

"The decision to resume construction works from April 15 in Uttar Pradesh stands cancelled in

view of PM Narendra Modi's address today," Maurya told ANI.

Earlier, he had said that construction work on government projects would resume from April

15.

"Construction on government projects will resume from April 15 in Uttar Pradesh while

maintaining norms of social distancing by workers," Maurya had said.

Today, when the ongoing lockdown was slated to end, the Prime Minister announced its

extension till May 3 amid rising coronavirus cases in the country.

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Newspaper/Online ET Realty (Online)

Date April 15, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/decision-to-resume-

construction-works-from-april-15-stands-cancelled-up-deputy-cm/75162290

Hubballi-Dharwad civic body extends property tax rebate period

till May 31

The HDMC has also deferred upward revision of the property tax. Taxpayers have to pay

the same amount they paid for the year 2019-2020.

The Hubballi-Dharwad Municipal Corporation (HDMC) has offered 5% rebate in property

tax for 2020-2021 if paid between April 1 and May 31. Usually, the rebate is allowed for taxes

paid in April. The rebate period has been extended this year in view of the Covid-19 lockdown.

The HDMC has also deferred upward revision of the property tax. Taxpayers have to pay the

same amount they paid for the year 2019-2020. Urban local bodies are permitted to revise tax

rates once in three years and the HDMC was supposed to revise it for the financial year 2020-

2021.

HDMC Commissioner Suresh Itnal said on Wednesday that the revision of tax rate has been

deferred in anticipation of the government’s order. He said property owners have to obtain

computerised tax challans at their zonal offices after filling the details in the prescribed booklet.

If there is any change in the property, they should give a self-declaration in Form 1. Tax can be

paid through NEFT or RTGS.

Those paying a tax exceeding Rs 10,000 through cheque/DD can call the helpline number 0836-

2213888/2213868 so that the HDMC staff will collect cheques from their homes. Those making

online payment can avail assistance from the HDMC website www.hdmc.mrc.gov.in. The

commissioner has appealed to those who have not paid their tax for the previous years to make

the payment and help development activities of the HDMC.

PAYMENT OPTIONS

Hubballi

Canara Bank, Koppikar Road, (A/C No: 2538106003554/IFSC code: CNRB0002538);

Corporation Bank, Vidyanagar (A/C No: 2538106003554/IFSC code: CORP0000528), SBI

Adarsh Nagar (A/C No: 64162342284/IFSC code: SBINOO40410); SBI, Keshwapur (A/C No:

64164577315/IFSC code: SBINOOOON846), UTI/Axis Bank, Deshpande Nagar (A/C No:

129010100041520/IFSC code: UTIB0000129), IndusInd Bank, Deshpande Nagar (A/C No:

100032405328/IFSC code: INDB0000058); Indian Overseas Bank, Koppikar Road (A/C No:

012601000202020 /IFSC code: IQBADODQ126); Indian Overseas Bank, Navanagar (A/C No:

Newspaper/Online ET Realty (Online)

Date April 15, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/hubballi-dharwad-

civic-body-extends-property-tax-rebate-period-till-may-31/75162239

357701000002000/IFSC code: IOBADOO3577).

Dharwad

Indian Overseas Bank, Jubilee Circle (A/C No: 177101000007468/IFSC code:

IOBACCO1771).

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