The 21-day lockdown to curb the spread of COVID-19 now extended by another 19 days till May 3 and the uncertainty over the future has put the construction sector in a quandary.
Though there are speculations that the government may ease restrictions for the construction sector given the employment generated by it, stakeholders say it is a long haul ahead before it can attain normality.
“The revival of the sector is dependent on the return of the migrant workers and resumption in the supply chain process which will take a long time,” said Ravindra Bhat of Builders’ Association of India and founder of the city-based construction firm Foundations Ltd.
He said leading players in the mega housing schemes and multi-storeyed apartment projects often tend to hire workers from Bihar, Uttar Pradesh, and Rajasthan as the locally available local force is inadequate. While there are no numbers to ascertain how many migrant workers are in the construction sector, estimates vary from 40% to 60% of the total workforce employed in the sector.
Most of them have left for their homes or may be stranded elsewhere. And till the migrant workers return, the existing projects cannot resume, said Mr. Bhat, pointing to inevitable delay in the completion of the work on hand and project delivery.
Even in project sites where many migrant workers are stranded and continue to be looked after by the firms employing them, work cannot resume not only because of the lockdown restrictions but also due to non-availability of material.
Housing and building activity hinges heavily on the timely availability of material like cement, iron, steel, m-sand, tiles, and electrical fittings. These are transported over long distances from across the country, and in many cases, imported from China, according to the stakeholders, who pointed out that a delay in supply of one component can disrupt the entire supply chain mechanism.
“We are unable to even prepare for any contingency as there is no clarity on when the lockdown will end. So we are content adopting a wait-and-watch policy,” said Mr. Bhat.
N. Subramanya, former vice-chairman of BAI, Mysuru, said there was a growing consensus that lockdown shock and disruption could last atleast another six months before full recovery.
But he reposed confidence that there would be a rush to complete the pending projects and anticipated a surge in building activity post-lockdown.
However, Mahesh, civil engineer and founder of Sneha Builders, said though the pending projects may be completed once the lockdown was lifted, the negative sentiment in the market driven by job loss or salary cuts in the private sector will subdue the demand for new houses, reduce investment, and delay the construction sector from attaining full steam.
