Published By : Admin | August 31, 2016 | 16:34 IST
Share
Cabinet chaired by PM Modi approves initiatives to revive the Construction Sector
Govt’s initiatives to revive construction sector to provide stimulus to the industry and boost employment
Govt’s decision to revive construction sector to allow recovery of loans, speed up execution of ongoing projects
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi today approved various measures to revive the construction sector which has been undergoing stress.
Under the proposal put forward by NITI Aayog and approved by the CCEA. Government agencies would pay 75% of the arbitral award amount to an escrow account against margin free bank guarantee, in those cases where the award is challenged.
The escrow account can be used to repay bank loans or to meet commitments in ongoing projects. This is a major step which will allow recovery of loans by banks and allow construction companies to speed up execution of ongoing projects. It will also increase the ability of construction companies to bid for new contracts and the resulting competition will be beneficial in containing the costs of public works. This measure will provide a stimulus to the construction industry and to employment.
Government Departments and PSUs have also been instructed to transfer cases under arbitration to the amended Arbitration Act which has an expedited procedure, with the consent of the contractors. In the long run, other measures are also under consideration, including changes to bid documents and model contracts, and increased use of conciliation. NITI will also examine the idea of creating "claim take out funds" financed by private sector investors, while the Department of Financial Services will examine a suitable scheme for addressing stressed bank loans in the construction sector.
Background
The move comes in the backdrop of the need to have a slew of short-term and long-term initiatives to address the issues ailing the construction sector. The construction sector is a major contributor to economic activity accounting for about 8% of GDP. It is the largest creator of direct and indirect employment, employing about 40 million people. It is a highly employment intensive sector with a strong multiplier effect, creating an estimated 2.7 new jobs indirectly for every Rs. 1 lakh invested. It has major forward linkages to sectors like real estate, infrastructure and manufacturing and backward linkages to steel, cement, etc. Thus, this sector is critical for stimulating employment and economic activity.
In recent years, the construction sector has been affected by the large number of projects which got stalled during the period of stagnation between 2011 and 2014. The banking sector also has a large exposure to construction, estimated at over Rs. 3 lakh crores. 45% of the bank loans in the sector are under stress.
Studies have shown that a key factor behind the difficulties facing the construction sector is the pendency of claims from Government bodies. An estimated Rs. 70,000 crores is tied up in arbitration. Over 85% of the claims raised against Government bodies are still pending of which 11% is pending with the Government agencies, 64% with arbitrators and 8.5% with courts. The average settlement time for claims is estimated at more than seven years. A majority of arbitration awards have gone against the Government agencies. In the case of the National Highways Authority, out of a total of 347 arbitral awards, 38 went in favour of the authority and 309 went in favour of the contractor/concessionaire. Out of the arbitral awards in NHAI cases, more than 90% were unanimous awards in which all arbitrators including the one appointed by NHAI had concurred in the decision. In many cases, arbitration awards are contested in the courts, even though a large majority of arbitration decisions are upheld by the courts.
However, of late, the construction sector has been several challenges leading to decline in the overall investments and growth. The issues ailing the sector was discussed with the representatives of construction companies, banks, NHAI, concerned Departments/ Ministries. Based on detailed discussions, larger economic importance and multi-sectoral nature of the issues, NITI Aayog put forward the proposal to suggest various initiatives required for addressing the issues ailing the construction industry.
Text of PM Modi's address to the Indian Community in Guyana
November 22, 2024
Share
The Indian diaspora in Guyana has made an impact across many sectors and contributed to Guyana’s development: PM
You can take an Indian out of India, but you cannot take India out of an Indian: PM
Three things, in particular, connect India and Guyana deeply,Culture, cuisine and cricket: PM
India's journey over the past decade has been one of scale, speed and sustainability: PM
India’s growth has not only been inspirational but also inclusive: PM
I always call our diaspora the Rashtradoots,They are Ambassadors of Indian culture and values: PM
Your Excellency President Irfan Ali, Prime Minister Mark Philips, Vice President Bharrat Jagdeo, Former President Donald Ramotar, Members of the Guyanese Cabinet, Members of the Indo-Guyanese Community,
Ladies and Gentlemen,
Namaskar!
Seetaram !
I am delighted to be with all of you today.First of all, I want to thank President Irfan Ali for joining us.I am deeply touched by the love and affection given to me since my arrival.I thank President Ali for opening the doors of his home to me.
I thank his family for their warmth and kindness. The spirit of hospitality is at the heart of our culture. I could feel that, over the last two days. With President Ali and his grandmother, we also planted a tree. It is part of our initiative, "Ek Ped Maa Ke Naam", that is, "a tree for mother”. It was an emotional moment that I will always remember.
Friends,
I was deeply honoured to receive the ‘Order of Excellence’, the highest national award of Guyana. I thank the people of Guyana for this gesture. This is an honour of 1.4 billion Indians. It is the recognition of the 3 lakh strong Indo-Guyanese community and their contributions to the development of Guyana.
Friends,
I have great memories of visiting your wonderful country over two decades ago. At that time, I held no official position. I came to Guyana as a traveller, full of curiosity. Now, I have returned to this land of many rivers as the Prime Minister of India. A lot of things have changed between then and now. But the love and affection of my Guyanese brothers and sisters remains the same! My experience has reaffirmed - you can take an Indian out of India, but you cannot take India out of an Indian.
Friends,
Today, I visited the India Arrival Monument. It brings to life, the long and difficult journey of your ancestors nearly two centuries ago. They came from different parts of India. They brought with them different cultures, languages and traditions. Over time, they made this new land their home. Today, these languages, stories and traditions are part of the rich culture of Guyana.
I salute the spirit of the Indo-Guyanese community. You fought for freedom and democracy. You have worked to make Guyana one of the fastest growing economies. From humble beginnings you have risen to the top. Shri Cheddi Jagan used to say: "It matters not what a person is born, but who they choose to be.”He also lived these words. The son of a family of labourers, he went on to become a leader of global stature.
President Irfan Ali, Vice President Bharrat Jagdeo, former President Donald Ramotar, they are all Ambassadors of the Indo Guyanese community. Joseph Ruhomon, one of the earliest Indo-Guyanese intellectuals, Ramcharitar Lalla, one of the first Indo-Guyanese poets, Shana Yardan, the renowned woman poet, Many such Indo-Guyanese made an impact on academics and arts, music and medicine.
Friends,
Our commonalities provide a strong foundation to our friendship. Three things, in particular, connect India and Guyana deeply. Culture, cuisine and cricket! Just a couple of weeks ago, I am sure you all celebrated Diwali. And in a few months, when India celebrates Holi, Guyana will celebrate Phagwa.
This year, the Diwali was special as Ram Lalla returned to Ayodhya after 500 years. People in India remember that the holy water and shilas from Guyana were also sent to build the Ram Mandir in Ayodhya. Despite being oceans apart, your cultural connection with Mother India is strong.
I could feel this when I visited the Arya Samaj Monument and Saraswati Vidya Niketan School earlier today. Both India and Guyana are proud of our rich and diverse culture. We see diversity as something to be celebrated, not just accommodated. Our countries are showing how cultural diversity is our strength.
Friends,
Wherever people of India go, they take one important thing along with them. The food! The Indo-Guyanese community also has a unique food tradition which has both Indian and Guyanese elements. I am aware that Dhal Puri is popular here! The seven-curry meal that I had at President Ali’s home was delicious. It will remain a fond memory for me.
Friends,
The love for cricket also binds our nations strongly. It is not just a sport. It is a way of life, deeply embedded in our national identity. The Providence National Cricket Stadium in Guyana stands as a symbol of our friendship.
Kanhai, Kalicharan, Chanderpaul are all well-known names in India. Clive Lloyd and his team have been a favourite of many generations. Young players from this region also have a huge fan base in India. Some of these great cricketers are here with us today. Many of our cricket fans enjoyed the T-20 World Cup that you hosted this year.
Your cheers for the ‘Team in Blue’ at their match in Guyana could be heard even back home in India!
Friends,
This morning, I had the honour of addressing the Guyanese Parliament. Coming from the Mother of Democracy, I felt the spiritual connect with one of the most vibrant democracies in the Caribbean region. We have a shared history that binds us together. Common struggle against colonial rule, love for democratic values, And, respect for diversity.
We have a shared future that we want to create. Aspirations for growth and development, Commitment towards economy and ecology, And, belief in a just and inclusive world order.
Friends,
I know the people of Guyana are well-wishers of India. You would be closely watching the progress being made in India. India’s journey over the past decade has been one of scale, speed and sustainability.
In just 10 years, India has grown from the tenth largest economy to the fifth largest. And, soon, we will become the third-largest. Our youth have made us the third largest start-up ecosystem in the world. India is a global hub for e-commerce, AI, fintech, agriculture, technology and more.
We have reached Mars and the Moon. From highways to i-ways, airways to railways, we are building state of art infrastructure. We have a strong service sector. Now, we are also becoming stronger in manufacturing. India has become the second largest mobile manufacturer in the world.
Friends,
India’s growth has not only been inspirational but also inclusive. Our digital public infrastructure is empowering the poor. We opened over 500 million bank accounts for the people. We connected these bank accounts with digital identity and mobiles. Due to this, people receive assistance directly in their bank accounts. Ayushman Bharat is the world’s largest free health insurance scheme. It is benefiting over 500 million people.
We have built over 30 million homes for those in need. In just one decade, we have lifted 250 million people out of poverty. Even among the poor, our initiatives have benefited women the most. Millions of women are becoming grassroots entrepreneurs, generating jobs and opportunities.
Friends,
While all this massive growth was happening, we also focused on sustainability. In just a decade, our solar energy capacity grew 30-fold ! Can you imagine ?We have moved towards green mobility, with 20 percent ethanol blending in petrol.
At the international level too, we have played a central role in many initiatives to combat climate change. The International Solar Alliance, The Global Biofuels Alliance, The Coalition for Disaster Resilient Infrastructure, Many of these initiatives have a special focus on empowering the Global South.
We have also championed the International Big Cat Alliance. Guyana, with its majestic Jaguars, also stands to benefit from this.
Friends,
Last year, we had hosted President Irfaan Ali as the Chief Guest of the Pravasi Bhartiya Divas. We also received Prime Minister Mark Phillips and Vice President Bharrat Jagdeo in India. Together, we have worked to strengthen bilateral cooperation in many areas.
Today, we have agreed to widen the scope of our collaboration -from energy to enterprise,Ayurveda to agriculture, infrastructure to innovation, healthcare to human resources, anddata to development. Our partnership also holds significant value for the wider region. The second India-CARICOM summit held yesterday is testament to the same.
As members of the United Nations, we both believe in reformed multilateralism. As developing countries, we understand the power of the Global South. We seek strategic autonomy and support inclusive development. We prioritize sustainable development and climate justice. And, we continue to call for dialogue and diplomacy to address global crises.
Friends,
I always call our diaspora the Rashtradoots. An Ambassador is a Rajdoot, but for me you are all Rashtradoots. They are Ambassadors of Indian culture and values. It is said that no worldly pleasure can compare to the comfort of a mother’s lap.
You, the Indo-Guyanese community, are doubly blessed. You have Guyana as your motherland and Bharat Mata as your ancestral land. Today, when India is a land of opportunities, each one of you can play a bigger role in connecting our two countries.
Friends,
Bharat Ko Janiye Quiz has been launched. I call upon you to participate. Also encourage your friends from Guyana. It will be a good opportunity to understand India, its values, culture and diversity.
Friends,
Next year, from 13 January to 26 February, Maha Kumbh will be held at Prayagraj. I invite you to attend this gathering with families and friends. You can travel to Basti or Gonda, from where many of you came. You can also visit the Ram Temple at Ayodhya. There is another invite.
It is for the Pravasi Bharatiya Divas that will be held in Bhubaneshwar in January. If you come, you can also take the blessings of Mahaprabhu Jagannath in Puri. Now with so many events and invitations, I hope to see many of you in India soon. Once again, thank you all for the love and affection you have shown me.
Thank you. Thank you very much.
And special thanks to my friend Ali. Thanks a lot.
