Categories: Business

Relief package: additional time to complete the infra project

Relief for contractors
Image Source: PTI

new Delhi. Finance Minister Nirmala Sitharaman on Wednesday announced an extension of up to six months in the deadline to fulfill their obligations to contractors of roads, railway projects and other works. In the case of real estate projects, the time limit for their registration to completion of work has been extended to six months. In this regard, the Union Urban Development Ministry will send necessary suggestions and advice to the regulatory authorities of the states. This move of the government will provide relief to the contractors of various projects affected by the corona virus epidemic. To prevent the spread of corona virus, lockdowns (restrictions) are in place throughout the country from 25 March 2020. Because of which all kinds of activities were stopped. The third phase of the lockdown ends on May 17.

Giving details of the government's Rs 20 lakh crore economic package, Finance Minister Sitharaman said that all central agencies such as Railways, Ministry of Transport and Highways, Central Public Works Department and all agencies including contractors to complete the works without any compensation. Will give a time extension of up to six months. He said that this extension includes construction work and contractual works of goods and services as well as the obligation to complete the work, the haul to be achieved earlier and the extension of concession period in terms of public and private participation. The Finance Minister said that government agencies can issue their partial bank guarantee to remove cash crunch at the level of contractors. The bank guarantee can be freed according to the work done by the contractors.

Sitharaman said that Kovid-19 also has an impact on real estate projects. In the case of housing development projects, the Ministry of Urban Development will suggest the regulatory authorities (RERA) of the states to make necessary provisions in this regard. Extension of up to six months will also be given in the registration of new projects in the real estate sector and the date of completion of old projects. He said the lockdown had come into force in the country since 25 March. The date of registration or completion of the work which was around it should be automatically extended to six without any application. For this, there is no need to take any kind of application from the developer developing the project.

This post was published on May 13, 2020 10:15 pm

Content Team

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