Kochi: Construction sector comes to standstill

KOCHI: The construction industry in the city has come to a standstill with middle and low income families and constructors fully stopping works while there is minimal activity in the large segment involving big builders. “We are unable to withdraw sufficient amount from banks for purchase of various construction materials. For the past one week since the imposition of the demonetization, traders gave us various articles on credit but they now say that they are no longer in position to afford that.

“So in the coming days unless the government ensures liquidity the whole construction industry will be paralysed,” said a contractor in Kochi who makes houses who refused to be named. He also said that payment to labourers is another problem being faces. “The daily withdrawal limit of Rs 4,500 and weekly limit of  Rs 24,000 do not allow a contractor to pay his workers. Most of us make weekend payments on Saturdays but it is now stuck,” he added.

Deputy Mayor of Kochi Corporation Mr T.J. Vinod said that the revenue collection under the Corporation has swung back into normalcy with it touching Rs 70 lakh since extending the deadline for old notes to November 24. “It used to be Rs 25 lakh per day and since the demonetization a week ago, it had gone down to Rs 2 lakh,” he said.