Government Clears Steps to Revive Construction & Real-Estate | Infra Bazaar

The Cabinet Ministry on Wednesday, has announced a package of measures to revive the Construction Industry & Real-Estate Industry. From the past couple years Real-Estate Industry was facing steady downfall because of funds and the decrement in Loan approvals from the Construction Industry & Real-Estate Industry. The Union Cabinet Ministry also released the post facto approval to the June 20^th foreign direct investments reforms that opened for the food sector with 100% foreign investment and raised the limit of civil aviation and defense up to 100% among the other Industries.

Shares of IVRCL, Hindustan Construction Company and Gammon India stood to gain percentage varying from 10 to 20 after the announcement. These companies have the great reputation and have significant exposure to government sector projects. The new regime, proposed by the NITI Aayog, will ensure that projects were not stalled by the developer and its other projects don’t suffer because of funds scarcity while the dispute is resolved. Over 70,000 crore is tied up by the arbitrator. To resolve the same it would usually take more than seven years on an average.

“On Wednesday, i.e 14/09/2016, one of the key issues is that there are a substantial number of recompenses where installments have not been made. Therefore the contractual workers have not possessed the capacity to pay the bank and it has antagonistically affected the monetary records of the organizations in addition to the banks. Furthermore, the activities have stopped,” Said by Finance Minister Arun Jaitley at a press briefing after the Cabinet Conference.

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