Indian Economy
Demand for a Relief Package
- 10 Apr 2020
- 2 min read
Why in News?
The National Real Estate Development Council (NAREDCO) and the Associated Chambers of Commerce and Industry of India (ASSOCHAM) have sought 200 billion dollars (about Rs 15 lakh crore) from the government as a relief package to minimise the economic impact of COVID-19.
- The relief package demanded for the industry is around 10% of the nation's Gross Domestic Product (GDP).
Key Points
- They have also called for a partial lifting of the lockdown on construction sites to reduce job losses.
- NAREDCO also called for suspending all cases under the National Company Law Tribunal (NCLT) for the next six months amid economic slowdown.
- NAREDCO has compiled standard operating procedures guidelines to ensure safety for people in and around construction sites.
- The real estate sector is already facing a severe credit squeeze after the collapse of IL & FS followed by NBFCs Crisis/ Shadow Banking Stress.
- The real estate sector accounts for 7% of the GDP and employs 11% of the country's population.
About NAREDCO
- National Real Estate Development Council (NAREDCO) was established as an autonomous self-regulatory body in 1998.
- It comes under the aegis of the Ministry of Housing and Urban Affairs, Govt. of India.
- NAREDCO is hailed as the apex national body for the real estate industry.
About ASSOCHAM
- The Associated Chambers of Commerce and Industry of India is one of the highest trade associations in India.
- It was established in 1920.
