Construction cess fund for workers to help revive housing construction

The transfer of underutilized construction fund by the states to building workers will help revive construction of stalled housing projects.

States have disbursed over Rs 4300 crore to construction workers out of the construction cess fund by beginning of June. This is one time support to 2.3 crore beneficiaries to help them get over the Covid-19 crisis. This follows the Centre’s advisory to adequately transfer money from the fund directly into the accounts of about 3.5 crore registered workers. As many as 21 states have transferred amounts of Rs 1000 – 5000 to the bank accounts of construction workers. By FY 20 end, an amount of Rs 31000 crore has been lying unused in the Construction Cess Fund . This leaves adequate scope for further financial support to distressed construction workers.

Says Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global & Chairman, Assocham, National Council of Real Estate, Housing & Urban Development, ” This financial help through cess fund comes as a relief to workers. Still, a large amount of cess fund is available for disbursement. Besides, developers have been paying air/train/bus fare to workers to return to construction sites. Proper arrangements for their stay and meals are also being made by real estate companies. This should help facilitate the return of workers and the revival of construction work.

Add a Comment

Your email address will not be published. Required fields are marked *