NCP chief Sharad Pawar has written to Prime Minister Narendra Modi saying that the real estate sector is in a state of "complete breakdown" amid the lockdown and Modi should look into the issue personally.
In the letter dated May 27, Pawar demanded that the prime minister undertake measures to revive the sector which has been hit hard.
"Amidst unprecedented pandemic COVID-19 and consequent nationwide lockdown, the Real Estate Sector is in a state of complete breakdown," Pawar said in the letter, which he shared on Twitter on Thursday.
The massive "outflux" of labourers, stoppage of work and sales for almost three months, stagnant demand and impaired economic activities have taken a toll on this industry "which contributes substantially to the national GDP", he said.
The Confederation of Real Estate Developers Association of India (CREDAI) too has written an open letter to Modi about the crisis and requested his immediate intervention, the former Union minister noted.
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CREDAI has made a few recommendations such as one-time (loan) restructuring, additional institutional funding, waiver of penal interest, policy innovations for triggering consumer demand, controlling cartelisation of raw material, changing criterion of affordability for GST applicability and operationalisation of SWAMIH fund to help the sector, he said.
The Special Window for Completion of Construction of Affordable and Mid-Income Housing (SWAMIH) fund was created by the government with contributions from financial institutions such as LIC and SBI to complete over 1,600 stalled projects with 4.5 lakh housing units.
"I shall be grateful if you personally look into the matter and initiate necessary measures for revival of one of the most important sectors of economy i.e. the Real Estate Sector," Pawar said in the letter.