The stay on construction activities in Maharashtra, Madhya Pradesh, Uttarakhand and Chandigarh by the Supreme Court, may impact the delivery timelines of housing and infrastructure projects, according to a report. The real estate sector could be further hurt, due to delay in project deliveries and related RERA implications, in the form of penalties, the report by Care Ratings added.
The Supreme Court, last week, had imposed a stay on all construction activities in Maharashtra, Madhya Pradesh, Uttarakhand and Chandigarh, for not framing any policy on solid waste management. Maharashtra, Madhya Pradesh and Uttarakhand account for about 15 per cent of the gross value added (GVA) from construction. Further, constructions in these states and union territories have been stayed, until the policy is framed.
Care Ratings said there is a lack of clarity, on the type of construction under stay and the order is expected to impact construction activity of real estate projects and infrastructure development.
“The stay is likely to affect delivery timelines of real estate (housing) and infrastructure projects,” it added. The agency expects the stay to impact the operations of real estate and infrastructure developers.
See also: SC asks Delhi LG to set up committee, to oversee solid waste management
“This is significant, as the construction sector is to be one of the leading sectors in fostering growth this year, where housing and infrastructure have been priorities of the government,” it said.
The report said, loans in the retail segment, mortgages, have been the driving factor of overall credit at present and this can slow down, until there is clarity on the court order. Disruption in construction activity, in turn, would impact demand for steel and cement and therefore, overall growth of core sectors, till further orders of the apex court, it added.
Press Trust of India (PTI), headquartered in New Delhi, is India’s largest news agency. It was registered in 1947 and started operations in 1949. PTI has more than 400 journalists and 500 stringers, who generate more than 2,000 stories and 200 photographs every day. Subscribers to PTI’s feed include the mainstream media, research groups, specialised presses, companies, government organisations and NGOs.
Facebook: https://www.facebook.com/PressTrustofIndia
Twitter: https://twitter.com/PTI_News
Email: [email protected]
Related Posts
Housing Minister Venkaiah Naidu warns states against diluting real estate law.
Real Estate Act comes into force, only 13 states notify rules.
SC gives Bombay HC 2 months, to decide on pleas against RERA.
SC pulls up Maharashtra SRA for not registering construction workers.
SC asks Amrapali for comprehensive plan on completion of delayed projects.
SC slams LG for inaction in clearing ‘mountains of garbage’ in Delhi.
