Notwithstanding the easing of curbs, the retention of migrant workers and the availability of construction materials will pose a challenge to the resumption of activities in the realty sector, industry representatives have said.
“The migrant labourers want to go back to their home States. They were being taken care of at the respective construction sites. However, following the announcement that arrangements will be made for them to go back [home], they have become restless and anxious over the last four days. Family pressure is also a factor,” Padam Dugar, president, Confederation of Real Estate Developers’ Associations of India (CREDAI) - Chennai Chapter, said.
According to industry estimates, there are around one lakh migrant workers in the construction sector in the State.
Mr. Dugar, also the vice-chairman and managing director of Dugar Housing Limited, said another challenge was the availability of construction materials like cement and steel, among others.
“Unless these materials are freely available, it won’t be possible to kick-start activities in a full-fledged manner. The government has been trying its best, and it has been a learning curve for everyone,” he added.
Ajit Kumar Chordia, managing director, Olympia Group, said migrant workers wanted to go back home, and there was uncertainty over whether they would return. This would delay projects by at least three months, he added.
“If we can get the [travel] passes quickly and start work, and if they (the workers) are paid wages and offered incentives, there is a chance of retaining 50%-60% of the workers,” he said.
Another industry executive, who did not wish to be named, pointed out that the daily wage of a migrant construction worker was around ₹600-₹700, while a local worker would be paid ₹300-₹400 more.
“Building contractors have a fixed-rate deal with real-estate clients for construction work, and cost escalations are not entertained. The non-availability of workers will delay projects, and the cost will go up as there is going to be a shortage of materials,” he added.
Nallathambi Kalyanaraman, chief operating officer at Navin’s, said most migrant workers had indicated that they wished to go back home.
Moving engineers and materials to the construction sites would pose a challenge in Chennai, since a lot of restrictions were in place, he said.
“The key to retaining migrant workers will be quickly restarting activities and ensuring that they start earning again,” W.S. Habib, managing director of RWD, said.
