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| Prosperity
through Construction Industry |
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Construction
Industry is a nodal Industry. So many industries,
at upper linkages (Industries which supply
materials as inputs list separately given),
and lower linkages (Materials which go into
system when construction is complete- list
separately added) depend on construction
activity, that one can feel pulse of National
economy by watching construction activity.
Construction activity also creates jobs
at all levels. Construction activity, which
is common denominator to all other activities,
could easily be considered as barometer
of progress for the other linked industries.
To help fight recession, to make industries
survive, to create more jobs, Govt will
have to provide pushing impetus to construction
sector so that construction activity increases,
as much as possible.
Providing
Infrastructure projects, Encouraging Affordable
housing, and creating rented housing should
be the key areas, where Govt, should concentrate
and provide proper thrust by providing subsidies
and adopting fitting policies. This will
not only help us come out of present recession,
it will also meet with huge shortage of
dwellings. Having house property gives stability
to the family and a sense of belonging.
It brings in hygienic living, better atmosphere
for children s education; helps reduce slums,
and bring better Law and Order. Fighting
with recession and providing jobs to masses,
should be our main concern.
How
to see that Construction industry grows?
Taking up water supply and sanitation schemes
earnestly, completing National highway projects
seriously, Expansion & Modernising of Ports
and Air ports, taking up nuclear power units,
Restarting shelved project of Linking -
rivers, could be major infrastructure projects,
which could help pick up construction sector,
and other industries, and give boost to
employment..
Second
area is to create stock of affordable and
rented accommodation. Affordable housing
should not be mixed with EWS and Slum clearance
schemes, which are to be taken up as social
responsibility, and therefore expect lots
of subsidy from the Govt. Affordable house
(for LIG and lower middle class), including
rental housing, does not need charity from
the Govt., but does need helping hand from
Govt. by way of right policy, and lower
tax structure. Affordable housing has basically
to be at comparatively cheaper cost, but
still with reasonably good amenities; the
house has to be easy on Maintenance, where
the outgoings, including taxes, are reasonable
and do not over-burden the owner. If we
want to reduce slums, and stay in clean,
peaceful and comfortable environment, we
must make houses affordable for masses.
Need is there to increase housing stock
in this segment.
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What the Govt can do?
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Make
contract documents simpler and fair
to both the parties. We are still
using age- old tender documents adopted
by British, which are heavily one
sided and unfair to the contractor.
Considering all taxes, under all laws,
be provided in the tender estimates.
Absence of providing Escalation clause
in tenders makes it more gambling
affair, than quoting on technical
competency. BAI and CIDC have prepared
some fair draft of tender-document.
This should be looked into and adopted,
with or without necessary modifications,
immediately. Fair conditions of contract
will reduce delay over runs and reduce
effective cost of the projects.
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Make
building bye-laws and rules simpler.
Too many restrictions invite corruption.
Corruption is the largest enemy and
evil of the Country. Due to corruption,
full funds do not reach the project.
Project costs increase, delays occur.
Strict rules are to be framed to curb
corruption.
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In
India, many industrial houses have
almost monopoly in production of certain
items. While they are definitely entitled
to reasonable profits, they should
not be allowed to bleed the user.
Cartels must be banned and made punishable.
Some sort of mechanism be put in place,
which keeps proper check on these
houses to charge reasonable prices.
Cement prices, for example, are quite
expensive, even compared to the imported
prices of neighbouring countries like
Pakistan. How it can be?
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Tax
holiday on infrastructure projects,
and affordable housing must continue,
in the form of section 80 I(A), and
80 I(B), as before. This gives impetus
to these sectors, and corelated industries.
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FSI
could be increased in the congested
and growing cities, so as to reduce
comparative cost of land.
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Construction
costs could be controlled by Developers,
by providing practical Specifications,
doing away with club houses, swimming
pools etc., which only add to unnecessary
costs. Specifications and Amenities
could be basic, and then expandable
by the owner at latter stage. Like,
One single tap could be provided in
Bath initially; Shower could be added
by the owner, at his cost, latter
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No
taxes on Industries which produce
Precast items for houses. Precast
items are to be extensively adopted,
as these could be produced in bulk,
and could be erected fast, thereby
reducing its cost. Precast items do
not need additional finishing like
cement plaster, and painting etc,
resulting in further saving. Balcony
railings, staircases, lintels, door
frames, kitchen platforms (with sink)
could all be all precast. RCC jallies
could replace windows in toilets.
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Provide
liberal and cheaper finance to Construction
companies with proven track record.
Also advance money to flat purchaser
at affordably cheaper rate. Today s
rate of interest is just killing for
the service class people, which put
them off for purchasing their dwellings.
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Income
Tax laws will need revision to allow
higher rate of depreciation (say at
the rate of 50%) and concession in
income tax on the rented housing.
Govt should charge only nominal fee/
Stamp Duty and registration charges
on these houses.
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Local
authorities should also extend concessions
on property tax, water tax, and sanitation
tax etc. on affordable and rented
housing.
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Government
must govern. It should be pro-active.
Aim should be to collect taxes justly,
and spend on the development which
is going to be useful to all classes
of Society. Jithe Raja Vyapari, tithe
Praja Bikhari. Govt. must not act
as a Business-man. .
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UPPER LINKAGES
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Basic:
Steel- Structural / Torsteel / TMT
bars Cement, Pozzolona cement, white
cement, Lime Stone, Stone aggregate,
Sand (Natural), Sand Crushed Chemicals
& Plasticizers, Water proofing Chemicals
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Shuttering
& Scaffolding: Steel, timber, Jungle-wood,
Plywood, Bamboo, Coir string, Nails,
Binding wire,
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Flooring:
Tiles Mosaic and Ceramic, Glazed tiles,
Natural stones like Marble, Cuddappa,
rough Shahabad, Kota Stone, Granite,
Stone, Wood
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Walls:
Bricks, blocks, Siporex, Putty, POP,
ACP, Glass, Gypsum Board, Paint, Wall
Paper, Thermo- Cole sheets, soft boards,
Plywood, Laminated sheets
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Roofing:
Mangalore tiles, G I Sheets, pre-coated
sheets, plastic sheets, Grass, Bamboo,
AC sheets, Aluminium Sheets, Fabric,
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Sanitary
ware: Commodes, wash hand basins,
sinks, Mirrors, Steel / PVC Pipes,
GI Pipes, Pipe fittings, Floor traps,
Gully traps, man-holes
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Pipes:
Steel, PVC, Copper, CI, GI, Stainless
steel, Bath fittings like Mixers,
taps, Hume pipes, S W Pipes, Plumbing
Nails, Screws,
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Doors /Windows: Wooden, Steel, Aluminium,
PVC, Bamboo, Chatai, Ply wood. Laminates,
Glass, Hinges, Aldrops, Tower bolts,
Locks, Mosquito netting,
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Electrical:
Cables & Wires, Switches & Sockets,
Bulbs & Tubes, Electronic Safety &
Security devices, Geysers & Boilers,
MCBs, ECBs, Elec. Meters, CCTV,.
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LOWER LINKAGES
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Furniture:
Stainless Steel, Steel, Aluminium,
Wooden, Cane, Cupboards, Cots, Dinning
Table, Kitchen cabinets,
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Curtains,
Curtain Rods, Upholstery, Table covers,
Seat Covers, Mattresses, Bed Sheets,
Pillows & Pillow covers, Table Cloth,
Napkins, Towels
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Electrical
Gadgets, ACs, Coolers, Refrigerators,
Invertors, UPS, Kit-Stoves, Utensils,
, Ceiling Fans, Exhaust Fans, Bells,
Computer, Stationary, Cooking Gas,
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House
Cleaning items, Buckets, Mugs, Aqua
Guard, Pressure Cookers, Candles,
Soap, Scent, Perfumes, Telephone.
Serving Plates & Dishes, Glasses,
Storage Utensils,
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2
Wheeler, 4 Wheeler, Cycle, Children
Cycle, TV, Radio, Music Gadgets,
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-
By K P Baney |
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Published
in Indian Construction Magazine |
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