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He was speaking to the construction industry, which said that the National Highways Authority of India (NHAI) has to release around Rs 25,000 crore, accepted by the arbitrator, to the builders and such issues are affecting the construction industry.
Inaugurating Baicon 2015, an international exhibition on construction equipment machinery and technology, organised by the Builders' Association of India (BAI), Southern Centre and Southern Builders Charitable Trust, he said, "What I want to tell the industry is dont expect reforms overnight.
There is a system. We are a democracy. People are asking six or seven months passed, this or that thing has not been done. We are not dictators. Parliament - Lok Sabha and Rajyasabha - has to approve the bills and many things has to get a consent from 50% of the states".
On one side business, industry and people expecet progress and speedy development and on the other side the opposition does not allow the Parliament to function. Change cannot be brought in on one day, he said.
He added that to fund infrastructure develoment, Government of India has raised the basic excise duty on petrol and diesel by Rs Two per litre without increasing the prices in the market. This hike will support the industry also. This will provide finance for the development of infrastructure.
Already 43.3% of Indian tax revenue is going for interest repayment, and it is a statement by the then Finance Minister P Chidambaram on February, 2014. "You cannot borrow further. We have to create wealth. You must boost the manufacturing sector for that. We are trying to give a helping hand to the business community," said Naidu.
for five years the national road network has come to a halt. The government has come out with land acquisition policy and is working on labour reforms to boost the industry. There is abundant talent available in the country, while skilled labour is not available for the industry.
"I suggest the industry that they should set up skill development centres, not only in the work site but also in the factory sites, take care of the responsibility of developing skilled people. I call up on the industry also as part of their Corporate Social Responsibilities please take care of skill development also," he said.
He added that the government will consider various demands raised by the BAI, including equitable standard contract document for the business of government projects, steps to address delay in arbitration settlement, unified labour law for construction industry, appointment of cement regulatory authority.
Industry seeks supportive policies
The BAI officials, later told reporters that the National Highways Authority of India (NHAI) has to release around Rs 25,000 crore accepted by the arbitrator to the builders and such issues are affecting the normal operations of the companies.
"The minister has assured the support of the government in various issues including the arbitration settlement, labour law etc," said S K Basu, president of BAI.
Another major challenge we expect is the non availability of skilled manpower, he said. For instance the current demand is of 35 million, which is expected to be at 80 million by 2020, while the rate of skill development is not in tune to with the growth in demand.
While the industry has formed a Construction Skill Development Council in collaboration with the National Skill Development Corporation and has developed around 250 trainers to train the manpower and around 5,000 workers, the industry requirement is far more than what these numbers can address, he added.
The industry has also suggested the government to expedite the clearances for stalled project, which is more than Rs 7 lakh crore infrastructure projects and to appoint a Cement Regulatory Authority "to prevail upon the cement manufacturers". It added that the construction contractors are subjected to innumerable taxes and addition of another 12.36% service tax will increase the capital cost resulting in higher inflation. It has also sought tax incentives for precast construction, to promote affordable housing targets of the central government.
