The gloomy atmosphere prevailing in the construction sector of India has led the government to take monetary steps to aid the ailing sector. The government extended its helping hands to boost the housing market in Mumbai, which has been experiencing an industrial slowdown for the past two years.
Under the plan, the Shivshahi Punarvasan Prakalp Ltd (SPPL), a firm that is fully owned by the Indian government, will offer monetary assistance for the construction activities in India at an interest level of 11.5% annum. The government has decided not to offer these loans on a 'carte blanche,' which refers to a blank cheque that has been signed already.
The building developers, who are eligible for these loans, will have to construct low budget houses and sell them at a minimal price to SPPL. This move will uplift the weaker community of India and also offers a quality lifestyle for people living in Indian slums. In addition, these loans are only available for building developers, who are interested in the Mumbai slum rehabilitation plans. The loans will be provided in instalments and will be associated with different phases in construction, according to The Indian EXPRESS.
The government is moving forward to achieve its goal of constructing nearly 11 lakh budget houses. In late nineties, a similar loan strategy hammered the government's scheme leading SPPL to a liquidity crunch. Debashish Chakrabarty, a managing director at SPPL, said that the company is confident regarding the current loan offer and that SPPL will offer the loan amount in instalments basis, which is associated with different phases of construction. He continued that only developers who can construct more number of houses at an affordable price will be eligible for loan offers.
India's ailing construction sector is being backed by government policies, overseas investments and other related technological advancement. The industry, which employs nearly 33 million workforce, is suffering from a continuous slowdown in the real estate market, which resulted in many unsold houses across the nation, opp.TODAY quoted Pride Group's managing director, Arvind Jain. He also added that the deficit in the number of skilled staffs, scarcity in the raw materials supply combined with political disturbances fuelled the slowdown in the construction sector.
Meanwhile, an International Construction and Interior fair, which is named as BuildMat 2017, has been organised by three Coimbatore-based professional enterprises and the bookings are scheduled to commence on Monday. With this BuildMat 2017 fair, the Indian construction sector is expected to step into a next stage of development, as reported in THE HINDU.
Exhibitors from construction fields like engineering, raw materials producers, construction machinery suppliers, technology providers, sanitary ware manufactures will participate in the fair. Nearly 13 national construction enterprises are backing up the fair.
The construction industry of India is facing a serious downturn, owing to economic challenges globally. The move by SPPL will stimulate growth in the construction sector and also provide job opportunity for many people in India.
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