Union minister of state for home affairs G Kishan Reddy on Wednesday assured the developers' associations that the government will extend all necessary support to the real estate industry, which is one of the largest employment generating sector.
He said the government was aware of the issues faced by developers amid Covid-19 induced lockdown and is taking measures to protect the builders as well as construction workers.
"There are many sectors which are impacted due to this lockdown, which require special attention and holding. Real estate, which is one of the largest employment generating sectors and impacting nearly 150 allied industries, is one such sector which needs support," Reddy said during a webinar organised by real estate developers' body Naredco to discuss the issues faced by the sector.
A day after Prime Minister Narendra Modi announced the extension of the lockdown till May 3, the ministry of home affairs issued guidelines with a list of economic activities that will be permitted after April 20, 2020 in certain areas keeping in view the interests of farmers and daily wage earners.
The government has, however, permitted activity to resume in non-Covid-19 hotspots, provided they follow strict social distancing guidelines.
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"Today's economic situation is grim. The government is coming up with several advisories to ensure smooth implementation of guidelines and is also responding to the developing situations.
"But at the same time we need ideas and suggestions from experts and functionaries operating in the respective fields and conduct brainstorming sessions to churn out some good solutions," he said.
During the interaction, Naredco President Niranjan Hiranandani welcomed the government's move of providing relaxationto commence certain economic activities but pointed out that there was a need for one time roll over of credit limit, 50 per cent reduction in GST rates and release of tax refunds pending with the government.
"Today, liquidity is a major issue. Developers are taking care of the labourers at their project sites but for starting the construction activities we need liquidity. If government releases the tax refund along with the funds it recently announced under other initiatives, it will bring liquidity into the system and help revival of the sector going forward, " Hiranandani added.
Assuring government's support Reddy said there was a need to adopt innovation and out of the box thinking to revive every sector to scale new heights.
"Developers' community needs to find new ways and means in this scenario to increase production. At the same time, send me your suggestions on the financial measures that can be considered. I will send these suggestions to the Prime Minister and Finance Minister and we will come up with positive solutions," he added.
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