Goyal Asks Realtors To Ensure Guaranteed ESIC, PF Registrations For 7 Crore People Working In Sector

Union Commerce and Industry Minister Piyush Goyal on Tuesday asked the real estate industry to provide guaranteed ESIC and provident fund registrations for 7 crore people working in this sector, besides adopting new form of construction process for fast project execution with less pollution.

Addressing an event organised by realtors' apex body CREDAI here, he also asked India Inc, including realty firms, to set up manufacturing facilities for construction equipment to make India self-reliant.

"I urge you to kindly think about this in very serious terms... can we ensure a guaranteed ESIC and provident fund registration of all these 70 million workmen and women (working in this sector)," Goyal told real estate players.

He asked the CREDAI to come out with a resolution on November 25, when the association will celebrate its 25 years, after extensive stakeholder discussions with its 14,000 members.

Goyal said there are many positive impacts if industry ensures guaranteed ESIC and PF registrations.

Elaborating on possible benefits, he said, "it will give credit and credibility to your industry. People will start appreciating that you are providing jobs to 70 million, and that number will grow in the years to come."

Industry will truly get credit for the good work it is doing, he said.

"Very often that credit is found wanting because many policy makers, possibly bankers and possibly regulators, still look upon the industry with the prism of the past, and I think it's time we change that."

"With 70 million people registered under ESIC and PF, you will truly be able to showcase your contribution to the national economy and to the well being of India," Goyal said.

The Union Minister further said the guaranteed ESIC and PF registrations would ensure 100 per cent health coverage and pension for their social security post retirement.

Goyal said this step would also boost productivity and efficiency of people working in this sector, leading to improvement in quality.

He also asked Quality Council of India (QCI) Chairperson Jaxay Shah, who was present at the event, to work with the Bureau of Indian Standards (BIS) to come up with new standards for the construction sector.

Goyal also stressed on the need to inculcate "quality of culture" in the industry and said this will not cost much.

On CREDAI President Boman Irani's demand to reduce import duties on construction equipment, the minister suggested that the industry should rather focus on manufacturing those items in India only and make the country self-reliant.

He said there would be huge demand for construction equipment because of high growth potential in the real estate sector.

"Why should all of these (construction equipment) not be made in India? And I am not saying assembly, Made in India. And I would urge you to come up with a list of products and potential market size. I will become your ambassador and talk to industry leaders in CII and FICCI, to all of them, to start promoting the manufacture of these products in India," Goyal said.

He said there is no harm in taking collaborations and technologies from abroad.

"But instead of the duties, I think let's focus on making high quality equipment in India," he said.

The minister, however, said the government could consider a proposal of reducing import duties for 3-4 years of the transition period with a clear roadmap that by then the Indian companies would set up manufacturing facilities of construction equipment.

Goyal also expressed concern over pollution levels in big cities with construction activities being one of the major factors.

He asked realtors to adopt new forms of construction technologies that are environment-friendly.

"If we were to move to steel structures and use precast equipment, just like we see in Europe, America, Dubai, Singapore and possibly even in Australia, the cost of construction may not go up very significantly, but the speed of construction will certainly go up."

Goyal said the industry players will be able to complete real estate projects much faster and also reduce their interest cost.

"And with the money rotation being faster, you can do much more business for every dollar rupee that you are investing in your business, you can probably expand much more in terms of output."

He asked builders to begin with adoption in at least 8-10 big cities in India.

"And I would ideally like it to be a suo-motto industry adoption, rather than a government forced adoption," he said.

Confederation of Real Estate Developers' Associations of India (CREDAI), which has 14,000 real estate developers as members, is organising its flagship event 'CREDAI NATCON' here during September 23-26. More than 1,100 builders are attending the event.