Greedy builders will get flushed out

There is a lot of propaganda that the Hyderabad’s realty sector is badly hit, stopping property sales. CREDAI Telangana Secretary General K Indrasena Reddy opined that if the market prices are corrected, there will be no loss. Instead, it would benefit to the construction sector. Speaking exclusively to Real Estate Guru (REG) on the situation prevailing in the city’s real estate sector, he said that the developers who have turned greedy and trying to make money in short span, will get washed away under the latest market conditions. The city’s professional builders have the ability to withstand a market correction. He felt that the real estate sector will flourish, if the fraudsters who entered the market, are thrown out. Surprisingly, the professional builders are unable to find proper land under the current circumstances. Excerpts from his interview…

It is a known fact that most of the construction workers in Telangana are migrants from other States, while those belonging to the State are migrating to the Gulf countries for livelihood. Discussing the same recently, Municipal Administrations Minister KT Rama Rao suggested the construction associations to set up a training centres to train Telangana youth to meet the local industry requirements. All the Telangana construction associations are brainstorming on this currently.

However, there are a few things we should all note here. Rice production in Punjab has dropped by 60 per cent since Nitish Kumar became Bihar Chief Minister as he could reduce migration from Bihar to a large extent. Further, it was discovered that a large percentage of the locals there had lost focus on agriculture. In the coming days, States like Odisha, Chhattisgarh, Jharkhand, Uttar Pradesh and Rajasthan are also making efforts to reduce migration of their workforce by creating livelihood opportunities locally. As this could have an adverse impact on the Telangana’s construction sector, we must all be prepared towards the skill development among our youth in the State.

On-site training

Youth who get trained on the project site for a month, will gain more practical knowledge than students studying in the polytechnic colleges for two years. Therefore, we need to teach various skills to our youth without insisting on formal education. For example, L&T employs youngsters after training them for six months at their facility in Jadcherla. Similarly, training should conducted for the youth at various sites in each CREDAI chapter. Such an initiative will alleviate the shortage of construction workers in the State and a large percentage of people will find employment. This will also prevent youth from migrating to the Gulf countries in future.

Infrastructure growth is great

In the 1990s, countries like India and China had almost the same level of exports and GDP. But China has increased its exports and until 2018, it has been producing 25 percent of the world’s goods. Around 60 percent of the ACs sold worldwide today are made in China. About 64 percent of shoes, 70 percent of solar, 70 percent of mobiles, 90 percent of American flags, and many other goods are manufactured in China to a large extent. Believe it or not, China has consumed more cement in three years than that was used by USA in 100 years. Nearly 50 percent of the world’s apples are exported from China. Their immediate competitor – the United States, accounts for only six percent of the exports which indicates the huge gap in their production.

The main reason for China’s development is that the local government has been focusing on infrastructure development since the 1990s, where they developed an outer ring road and other arterial roads in every city. At the same time, they also focused on agriculture, hydel power and transport network. China has developed the infrastructure to facilitate the rapid transportation of any commodity from the country to abroad, and the Telangana government is moving in the same direction with focus on infrastructure development. We witnessed significant growth in agriculture sector and giving priority to the manufacturing sector as well. Lands prices which were Rs 2-5 lakh per acre till recently, are now costing Rs 25-50 lakh. So, I can confidently say that there will be no hurdles to Telangana’s development in the coming days.

Must strengthen the companies

Nearly 60 countries in the world, are at risk of facing financial crisis like Sri Lanka, say global economists. The US economy is reported to have fallen to $ 7.2 trillion in the last quarter. If a similar outcome occurs in the second quarter, there is a risk of a recession. But if there is a 2008-like recession in India, there is no harm to India. At the same time, we must focus on a number of things. We should strengthen the construction companies and also the builders associations. We should not act against the construction regulations and build only the homes as per the buyers’ requirements. This will ensure the growth of the realty sector.