Growth in the construction industry can spur the growth of the economy as it has forward and backward linkages with at least 250 industries, Chairman and Managing Director of RINL AP Choudhary said calling for a greater focus on the construction industry.
Construction industry had a multiplier effect and the income of associated industry could go up five times, he explained. However, the growth in this sector was being hampered by shortage of skilled manpower he said delivering the keynote address at the one-day Conference on Emerging Trends and Opportunities in Construction Sector, organised by Confederation of Indian Industry Visakhapatnam Zone here on Thursday.
Speaking on trends in the industry he said that customers preferred turnkey projects unlike in the past and urged the construction agencies to ensure quality by sourcing the best material. Two of the major challenges for the construction industry were the cost over-run and time over-run, and these should be addressed by construction companies, for them to retain their credibility, he added.
The shortage of liquidity and high cost of loans for housing was affecting the construction industry, chairman of the Visakhapatnam Zone of CII and Director (Operations) RINL TK Chand said. He urged the banks to promote construction industry by making housing loans cheaper as individual housing was major component of the industry. The shortage of sand another major issue hampering the growth of the industry, he added. Visakhapatnam had great scope for development as the centre of PCPIR, Minister for Infrastructure, Investment, Ports and Natural Gas Ganta Srinivasa Rao said. He promised to take all steps to create a conducive climate for investment in the State, particularly in the region.
The seminar had four sessions on Construction Financing, Taxation and Processes, Sustainable Development and Talent Requirement for next Generation Construction Industry. A number of academicians and entrepreneurs from construction industry participated.