The construction industry in Goa is reeling under a double whammy-an economic slowdown-infused buyer's market and a debilitating shortage of construction material, especially sand.
While the state government has banned the extraction of sand in Goa, the Karnataka government has banned its transportation to Goa.
These developments have led to a severe scarcity of this fundamental construction material and an over 100% escalation in its price. There's also a paucity of other construction materials such as stone aggregate, rubble and laterite stones.
"The acute shortage of sand and other construction materials has led to a slowdown of construction projects," Datta Damodar Naik, managing director of a reputed Margao-based real estate firm, and former president of CREDAI (Confederation of Real Estate Developers' Associations of India) told STOI.
He explained that the months preceding the monsoon constitute the peak season for construction activities in Goa and are used to the optimum by both the organized and unorganized sectors in the construction field. This summer, construction activity has taken a hit.
Sand transporters too are a worried lot. With the transportation ban by Karnataka in place, contractors are forced to transport the sand from Karwar, Ramnagar and Londa-considered superior to Goa's local produce-on the sly and are inevitably selling it at a premium.
"Sand from the Kali riverbed in Karwar is fine and free of silt and other organic impurities. Sand extracted in Goa, on the other hand, is coarse and needs to be screened, which besides adding to the cost of labour, renders a significant portion unusable for construction work," explained N Prashant, a sand transporter.
He pointed out that the locally available sand also has high levels of salinity and is therefore not advisable for concreting work.
Stating that the transport ban has left almost 250 persons engaged in the business jobless, Prashant demanded that the state government provide them with adequate financial compensation on the lines of that being given to the mining-affected.
The escalation in prices has obviously led to a rise in the cost of construction, but builders are not keen to transfer the burden to customers owing to the already slack real estate market.
The stakeholders in the construction industry are hopeful that the new government in Karnataka will lift the ban on sand transportation to Goa.
From P1
"The real estate sector is reeling under the effects of global recession. The ban on mining in Goa has also compounded the problem. While on one side, new sales are hard to come by, old buyers are facing problems in repayment of their house loans. It's a buyer's market. Besides, in this year's state budget, the real estate industry is among the heavily taxed sectors. We are sandwiched from all sides," lamented Naik.
Considering the paucity of fundamental raw materials, what alternatives is the industry adopting?
"RMC or ready-mix concrete in one option, as sand is substantially used for concreting purpose. It's expensive, but convenient," said Naik. "Another alternative is artificial sand and since a number of plants manufacturing this have come up in Goa and neighbouring areas they can cater to Goa's requirement." He added that these moves reduce the requirement of local sand to tasks like plastering, etc.
Sources said that as an alternative to laterite stones, many construction firms have resorted to using concrete blocks. tnn
While the state government has banned the extraction of sand in Goa, the Karnataka government has banned its transportation to Goa.
These developments have led to a severe scarcity of this fundamental construction material and an over 100% escalation in its price. There's also a paucity of other construction materials such as stone aggregate, rubble and laterite stones.
"The acute shortage of sand and other construction materials has led to a slowdown of construction projects," Datta Damodar Naik, managing director of a reputed Margao-based real estate firm, and former president of CREDAI (Confederation of Real Estate Developers' Associations of India) told STOI.
He explained that the months preceding the monsoon constitute the peak season for construction activities in Goa and are used to the optimum by both the organized and unorganized sectors in the construction field. This summer, construction activity has taken a hit.
Sand transporters too are a worried lot. With the transportation ban by Karnataka in place, contractors are forced to transport the sand from Karwar, Ramnagar and Londa-considered superior to Goa's local produce-on the sly and are inevitably selling it at a premium.
"Sand from the Kali riverbed in Karwar is fine and free of silt and other organic impurities. Sand extracted in Goa, on the other hand, is coarse and needs to be screened, which besides adding to the cost of labour, renders a significant portion unusable for construction work," explained N Prashant, a sand transporter.
He pointed out that the locally available sand also has high levels of salinity and is therefore not advisable for concreting work.
Stating that the transport ban has left almost 250 persons engaged in the business jobless, Prashant demanded that the state government provide them with adequate financial compensation on the lines of that being given to the mining-affected.
The escalation in prices has obviously led to a rise in the cost of construction, but builders are not keen to transfer the burden to customers owing to the already slack real estate market.
The stakeholders in the construction industry are hopeful that the new government in Karnataka will lift the ban on sand transportation to Goa.
From P1
"The real estate sector is reeling under the effects of global recession. The ban on mining in Goa has also compounded the problem. While on one side, new sales are hard to come by, old buyers are facing problems in repayment of their house loans. It's a buyer's market. Besides, in this year's state budget, the real estate industry is among the heavily taxed sectors. We are sandwiched from all sides," lamented Naik.
Considering the paucity of fundamental raw materials, what alternatives is the industry adopting?
"RMC or ready-mix concrete in one option, as sand is substantially used for concreting purpose. It's expensive, but convenient," said Naik. "Another alternative is artificial sand and since a number of plants manufacturing this have come up in Goa and neighbouring areas they can cater to Goa's requirement." He added that these moves reduce the requirement of local sand to tasks like plastering, etc.
Sources said that as an alternative to laterite stones, many construction firms have resorted to using concrete blocks. tnn
http://timesofindia.indiatimes.com/city/goa/Hurt-real-estate-sector-reeling-under-sand-bans/articleshow/20128007.cms
No comments:
Post a Comment