Key Insights from President CREDAI at Conclave 2015

Key Insights from President CREDAI at Conclave 2015

Table of Contents:

1. Introduction
2. Importance of CSR and Skilling
3. Initiatives by Real Estate Developers
4. Skilling Programs and Training Institutes
5. Number of People Skilled
6. Target for the Year
7. Government Grants vs Self-Funding
8. Challenges Faced in Real Estate Industry
9. Ease of Doing Business
10. Labour Cess and ESI
11. Issue of Provident Fund
12. Conclusion

Introduction

Real estate developers in India have been actively involved in corporate social responsibility (CSR) initiatives and skilling programs. These efforts aim to Create positive change in society and contribute to the overall development of the nation. In this article, we will explore the importance of CSR and skilling, the initiatives taken by developers, the number of people skilled, and the challenges faced in the real estate industry. We will also discuss the issue of government grants versus self-funding, the impact of labour cess and ESI, and the problems related to provident fund deposits. Through this article, we hope to shed light on the efforts being made by the real estate sector and the need for support and collaboration from various stakeholders.

Importance of CSR and Skilling

Corporate social responsibility (CSR) and skilling have become integral components of the real estate sector's commitment towards sustainable development. Developers recognize the importance of giving back to society and addressing societal issues, such as unemployment and skill gaps. By investing in skilling programs, developers not only contribute to the nation's workforce but also empower individuals with the skills required to secure sustainable livelihoods. CSR initiatives go beyond just earning brownie points; they are a genuine effort made by developers to make a positive impact on the communities they operate in.

Initiatives by Real Estate Developers

Real estate developers across the country have taken up the responsibility of skilling people as part of their CSR efforts. They are initiating on-site training programs in collaboration with various institutes and organizations specialized in training and skilling. The focus is on various trades, such as masonry, electrical work, plumbing, and more. By providing training and upskilling opportunities to individuals, developers are not only addressing the skill gap but also creating employment opportunities within the sector.

Skilling Programs and Training Institutes

Real estate developers have partnered with recognized training institutes to ensure that the skilling programs are of high quality and meet industry standards. The training institutes play a crucial role in designing and delivering the skilling programs, ensuring that the participants receive the necessary knowledge and practical experience required for their respective trades. The programs are structured to equip individuals with the skills and expertise needed to excel in their chosen fields.

Number of People Skilled

The impact of these skilling programs can be gauged by the number of people who have already been skilled. More than 20,000 individuals have received training so far, and the target for the year is to skill 1 lakh people. This significant number reflects the commitment of real estate developers towards skilling and creating sustainable livelihood opportunities for individuals. Pros: -Increased employment opportunities -Development of a skilled workforce. Cons: -Challenges in managing and monitoring a large number of participants.

Target for the Year

Real estate developers are setting ambitious targets for skilling programs each year. The aim is to skill a significant number of individuals within a specific timeframe. By setting targets, developers ensure a systematic approach towards skilling and maintain a Sense of accountability for achieving the desired outcomes. These targets promote a focused and result-oriented approach towards skilling initiatives.

Government Grants vs Self-Funding

Real estate developers often face the question of why they do not take grants from the government for skilling programs. The response lies in the fact that developers believe in utilizing their own resources to fund skilling initiatives. They want to ensure that they understand the process and have the necessary expertise before seeking external funding. Self-funding showcases the commitment of developers towards skilling and sets a strong foundation for future expansion and collaboration.

Challenges Faced in Real Estate Industry

Real estate developers face several challenges, which hinder their primary focus on construction and project completion. Issues like distress calls, fire incidents, and other emergencies divert their Attention, impacting the overall progress and quality of projects. These challenges affect the ease of doing business and ultimately hinder the growth of the real estate sector. Pros: -Identification of challenges faced by developers. Cons: -Impacted project timelines and quality.

Ease of Doing Business

The concept of ease of doing business is crucial for the growth and development of any sector. The real estate industry needs a business-friendly environment that streamlines processes, reduces bureaucracy, and encourages Timely completion of projects. The government's focus on ease of doing business is commendable, but it will take time for the changes to reach the grass-root level. Developers urge authorities to expedite the implementation of ease of doing business initiatives for a smoother functioning of the sector.

Labour Cess and ESI

Developers have been contributing towards the welfare of construction labor through a 1% labor cess on their entire contract value. The funds collected through this cess are utilized for the welfare of laborers. However, the recent addition of Employee State Insurance (ESI) levy on construction labor poses challenges. The duplication of efforts and misutilization of funds have led the Builders Association of India to Seek legal intervention. Developers request authorities to review and rectify the situation for the betterment of the sector and the workforce.

Issue of Provident Fund

The issue of Provident Fund (PF) arises when contractors fail to deposit PF contributions. In such cases, the principal employer, i.e., the real estate developer, is held responsible. This puts undue pressure and administrative burden on developers who may be working with multiple contractors. Developers suggest that the responsibility should lie with the contractors, not the principal employers, to ensure fair and hassle-free operations. Rectifying this issue will save time, reduce stress, and improve overall efficiency.

Conclusion

The real estate sector's commitment to corporate social responsibility and skilling initiatives is commendable. Developers have taken proactive steps to address societal challenges and create a positive impact on the communities they serve. However, they face various challenges ranging from bureaucratic hurdles to issues related to labor welfare. By collaborating with government authorities and streamlining processes, the real estate sector can contribute significantly to the overall growth and development of the nation. It is vital that the concerns raised by developers are addressed, ensuring a favorable business environment and sustainable progress. The ongoing skilling programs and CSR initiatives by real estate developers demonstrate their dedication towards creating a brighter future for individuals and society as a whole.

Highlights:

• Real estate developers in India are actively involved in CSR and skilling initiatives.
• Skilling programs aim to bridge the skill gap and create employment opportunities.
• More than 20,000 individuals have been skilled so far, with a target of 1 lakh for the year.
• Developers self-fund skilling initiatives to ensure proper implementation and expertise.
• Challenges in real estate include distress calls, fire incidents, and bureaucratic hurdles.
• Ease of doing business is vital for the growth of the real estate sector.
• Labour cess and ESI pose challenges due to duplication and misutilization of funds.
• The issue of Provident Fund deposit lies with contractors, not the principal employers.
• Collaboration between developers and government authorities is essential for progress.

FAQs:

Q: How many people have been skilled through the initiatives? A: Over 20,000 individuals have already received training, with a target of skilling 1 lakh people for the year.

Q: Why don't real estate developers take grants from the government for skilling programs? A: Developers believe in utilizing their own resources and expertise before seeking external funding.

Q: What challenges do real estate developers face in the industry? A: Developers face challenges such as distress calls, fire incidents, and bureaucratic hurdles, which impact project timelines and quality.

Q: What is the issue with Provident Fund deposits? A: The issue arises when contractors fail to deposit PF contributions. The principal employers are currently held responsible, causing administrative burden and stress.

Q: How can the real estate sector contribute to the nation's growth? A: By collaborating with government authorities and streamlining processes, the sector can create employment opportunities and contribute to the overall development of the nation.