The Indian government is contemplating the introduction of a pan-India card for construction workers and a comprehensive restructuring of the Building and Other Construction Workers (BOCW) Scheme. The aim is to expand its coverage and utilize its funds to provide broader social security, including a pension scheme, according to a senior official.

The official informed ET, “The substantial corpus available under the BOCW fund can be utilized to finance the social security of millions of unorganized workers. However, the current scheme lacks portability between workers and benefits.”

To address these limitations, an internal committee has been established within the Ministry of Labor and Employment. Its primary objective is to examine the restructuring of the BOCW scheme, expand its coverage, and enable the portability of benefits, particularly for migrant workers.

As part of the proposed revamp, the ministry is considering eliminating the mandatory requirement of working for 90 days to avail of the scheme’s benefits. Additionally, it plans to simplify the registration, renewal, and other enrollment processes under the scheme to ensure the inclusion of all construction workers, the official stated.

The Building and Other Construction Workers Act, of 1996, mandates state governments, through their state welfare boards, to formulate and implement schemes for the safety, health, and welfare of construction workers.

Presently, different states have varying eligibility criteria for accessing benefits under the BOCW scheme. This inconsistency poses a significant challenge for migrant workers in the construction sector who seek to enroll in the scheme.

The BOCW fund is financed by a 1% cess on the construction cost of infrastructure projects, whether undertaken by the government or the private sector. This cess is collected by states and deposited into the welfare fund.

Currently, states have accumulated unutilized funds exceeding ₹40,000 Crore under the scheme. Collectively, the state governments have collected over ₹78,000 Crore through the BOCW cess scheme, with nearly ₹38,000 Crore already allocated for expenditure.

The proposed pan-India card and pension scheme for construction workers aim to enhance social security measures and address the existing challenges faced by workers in the sector. The government’s efforts seek to provide better support and welfare benefits to this vital workforce.

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Howard Lutnick, CEO of Cantor Fitzgerald and BGC Partners, has expressed concerns about the commercial real estate market due to a combination of higher borrowing costs and stricter lending practices. This could potentially hinder the Federal Reserve’s ability to raise interest rates further. Lutnick warned of a challenging period ahead for the commercial property sector, which may also impact US stocks.

Speaking to CNBC, Lutnick highlighted the difficulty in refinancing commercial real estate loans, with many borrowers struggling to roll over their debt in the current credit market conditions. This tightening of credit could weigh on equity markets and potentially lead to a downturn. Lutnick predicted that approximately $500 billion out of $1.5 trillion in commercial real estate loans coming due over the next three years may result in borrowers surrendering their properties, placing lenders in a challenging position.

Lutnick emphasized that the math simply doesn’t work for borrowers if interest rates reach 8% or 9% while rental incomes fail to keep pace. This predicament could lead to borrowers handing back the keys to their properties. He further stated that these developments would have significant implications and keep the Federal Reserve from raising interest rates.

The commercial property market has been a cause for concern among experts and market observers, with the recent banking crisis leading to higher borrowing costs and lenders becoming more cautious. Lutnick also expressed apprehension about regional banks, noting that they are in significant trouble and likely to undergo consolidation. He suggested that larger banks should be allowed to acquire struggling regional banks, implying that the Federal Reserve must consider such measures.

Lutnick’s warning sheds light on the challenges faced by the commercial real estate sector, indicating potential implications for the broader financial landscape.

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Anand Jain, renowned as the brain behind Reliance Industries’ real estate investments, has emerged as a key figure in the conglomerate’s success. Not only is he a close friend of India’s business magnate, Mukesh Ambani, but he is also considered a quasi-son to the late Dhirubhai Ambani, the revered tycoon.

Having risen to prominence during the mid-1980s, Anand Jain gained recognition within RIL by effectively countering the bear cartel led by Manu Manek, solidifying his position as a shrewd businessman. Born in 1975, Jain currently serves as the Chairman of Jai Corp Limited, boasting an impressive track record of over three decades across various sectors, including real estate, finance, and capital markets.

Once ranked 11th on Forbes India’s 40 Richest list in 2007, Anand Jain enjoyed immense success, accumulating substantial wealth. Additionally, his son, Harsh Jain, co-founded Dream11, an Indian fantasy sports company.

Anand Jain’s association with Mukesh Ambani spans over 25 years, with the former serving as a trusted confidante. He held influential positions such as the vice-chairman of Reliance Capital and directorships in Reliance group companies like Indian Petro Chemicals Ltd. (IPCL). Presently, Jain serves as a Director at Reliance Industries Limited, further cementing his role as an essential advisor to the billionaire tycoon.

Notably, Anand Jain refuses to accept any salary from Reliance Industries, instead focusing on providing astute guidance regarding Mukesh Ambani’s real estate ventures. Jain’s expertise and strategic vision have been pivotal in shaping the conglomerate’s investment decisions in this domain.

The close bond between Mukesh Ambani and Anand Jain can be traced back to their days at Hill Grange High School in Mumbai. When Ambani returned from Stanford University in 1918, Jain willingly relinquished his own business interests in Delhi to join Reliance Industries. Furthermore, Jain shares a rich history of collaboration with Mukesh Ambani’s late father, Dhirubhai Ambani.

As Reliance Industries continues to thrive, Anand Jain’s contributions, coupled with his unyielding support, continue to play a significant role in the company’s strategic growth and expansion. His expertise and close association with the Ambani family have undoubtedly left an indelible mark on Reliance’s journey.

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On World Environment Day, residents’ welfare associations (RWAs) across Delhi, Mumbai, and Bengaluru are taking proactive steps to champion sustainable initiatives within their housing societies. With the real estate sector accounting for approximately 39% of global emissions, according to a McKinsey report, these efforts are crucial for climate change mitigation.

Delhi’s Defence Colony RWA, led by former president Ranjit Singh, has witnessed a shift in homebuyers’ attitudes towards green initiatives. With over 6,000 apartments, the colony has successfully installed solar panels, resulting in reduced electricity costs. Inspired by these energy conservation benefits, individual homebuyers are now adopting solar panels and water harvesting systems.

In Bengaluru, several RWAs are driving the green transformation within their apartment complexes, aiming to counter unplanned development and its adverse effects. Century Saras RWA, comprising 128 apartments, has saved an impressive 10.8 crore liters of water annually through sustainable measures. The installation of 50 kW solar rooftop panels has enabled the complex to become self-sufficient in electricity, leading to substantial maintenance cost savings.

Mumbai, known for its ecologically sensitive zones, is witnessing a revival thanks to the collective efforts of RWAs. Facing encroachments and illegal construction, a group of 25-30 RWAs joined forces to restore the vanishing mangrove wetlands. The Supreme Court ruled in their favor after a three-year battle, resulting in the rejuvenation of the wetlands and a resurgence of biodiversity. This victory has also positively impacted the local economy, particularly the lives of fishermen in the area.

On this World Environment Day, these inspiring stories of RWAs driving sustainable initiatives highlight the importance of grassroots efforts in transforming India’s real estate sector towards a greener future.

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Singapore has taken the lead as the most expensive city in the Asia-Pacific region for private homes, surpassing Hong Kong, according to a new report by the Urban Land Institute (ULI). The median price of Singapore’s private homes in 2022 was $1.2 million, while Hong Kong stood at $1.16 million.

The report also highlighted Mumbai as the Indian city with the highest median home price per square meter, reaching $3,383, while Delhi NCR lagged behind at $1,358.

The ULI’s 2023 Asia Pacific Home Attainability Index examined 45 cities across nine countries, covering a combined population of 3.5 billion people. It aimed to assess the affordability of housing in relation to median household incomes. Singapore not only had the highest home prices but also topped the region in terms of rental costs, with monthly rents for private homes averaging $2,600. This figure far exceeded other cities like Sydney, Melbourne, and Hong Kong.

Several factors contributed to the significant increase in home prices and rents in Singapore. These included a substantial influx of immigrants, a growing trend of young professionals seeking larger and more independent living spaces, and new government measures that imposed a 15-month wait-out period for homeowners after selling their private properties before being eligible to purchase non-subsidized Housing Development Board (HDB) resale flats. Limited availability of rental properties and disruptions in the housing supply chain due to the COVID-19 pandemic also played a role.

The report emphasized that homeownership rates in Singapore remain notably high, reaching nearly 90%. This is in contrast to other gateway cities such as Hong Kong, Shanghai, Tokyo, and Seoul, where homeownership rates are relatively low due to soaring home prices and a more transient population.

The housing market in Singapore continues to reflect the complex interplay between government policies and population dynamics, shaping the affordability and accessibility of homes in the city-state.

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In what may bring relief to lakhs of homebuyers, the government is planning to bring in a proposal to allow the registration of flats in real estate projects that are completed but undergoing insolvency proceedings. The proposed amendments to the Insolvency and Bankruptcy Code (IBC) aim to address the concerns of homebuyers affected by the moratorium period during insolvency proceedings.

Under the current system, homebuyers are treated as financial creditors and form part of the Committee of Creditors (CoC), similar to banks. The proposed amendment suggests that if full payment for a completed housing unit has been received, registration of the flat should be permitted in favor of the homebuyers. This would require the consent of the CoC and would provide much-needed relief to homebuyers while ensuring cash flows to the insolvent real estate firms.

The consultation paper released by the corporate affairs ministry earlier this year highlighted the need to enable the transfer of ownership and possession of completed units to allottees during the moratorium phase. This proposed change would benefit homebuyers who have paid the entire amount for their units and are currently awaiting possession.

Legal experts support the proposed amendment, emphasizing that it would allow homebuyers to obtain ownership and possession of their properties without having to wait for the entire insolvency process to be completed. They argue that homebuyers often prioritize having a roof over their heads rather than getting their money back. Additionally, the proposed transfer of ownership would generate revenue through the collection of stamp duty for the authorities.

While the proposal is seen as a positive step, some experts anticipate challenges in obtaining the required consent from the CoC. Financial creditors such as banks and other institutions might hesitate to grant consent unless their dues are fully paid or the matter is resolved satisfactorily.

Despite the challenges, addressing the concerns of homebuyers in the real estate sector is crucial. Real estate cases currently comprise a significant portion of the total insolvency cases filed, and the success rate of resolution plans in the sector has been relatively low. The proposed amendments to the IBC aim to improve the efficiency and effectiveness of insolvency proceedings in the real estate industry.

The Insolvency and Bankruptcy Code, enacted in 2016, has evolved over the years to address the specific challenges faced in distressed cases, particularly in the real estate sector. The proposed amendment reflects the government’s commitment to resolving the issues faced by homebuyers and ensuring the smooth functioning of insolvency proceedings in the real estate industry.

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Swiss biotech major Roche’s India arm has recently acquired a sprawling office space spanning over 2 lakh square feet in Pune’s Baner locality, according to sources familiar with the matter. The office space was purchased from Brookfield Properties as part of its commercial project called 45Icon.

Roche Information Solutions India, the healthcare digital entity of the global pharmaceutical major, has agreed to a long-term lease of 9 years, with rental payments exceeding Rs 210 Crore.

An insider revealed, “The transaction has been finalized, and both parties have reached an agreement on the lease terms. The deal is expected to be officially registered in the coming days.” The 45Icon project is a collaboration between Brookfield Properties and Raviraj Abhinandan Developers, featuring a leasable area of approximately 4 lakh square feet on a plot spanning over 3.34 acres.

In addition to Roche, the commercial tower at 45Icon boasts prominent tenants, including Tarana Wireless, a US-based fixed wireless access solutions provider, and Infobeans Cloudtech, a leading cloud consulting and outsourcing company.

Last year, Roche Pharma announced the establishment of its second data analytics center in Hyderabad, marking its continued investment in India. Through Roche Information Solutions India, which was established in 2015, the company leverages data analytics and workflow integration to gain valuable insights that aid in enhancing patient care through efficient data management.

Brookfield Properties, one of the largest investors in Indian real estate, owns over 50 million square feet of properties across key cities in India. Despite concerns of a recession in Western markets and its potential impact on Indian commercial real estate, the office space segment has experienced a significant resurgence in demand over the past 3-4 quarters. This revival can be attributed to robust economic growth, increased hiring, and a gradual return of employees to physical office spaces.

At the time of publication, Roche had not responded to ET’s email queries, while Brookfield Properties declined to comment on the matter.

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In response to the growing popularity of electric vehicles (EVs), real estate developers in Jaipur are now offering charging units in their upcoming residential projects. Recognizing the future potential of EVs, developers are installing these charging points, considering them common spaces within the complex.

Dhirendra Madan, a real estate developer and president of CREDAI Rajasthan, stated that EVs are the future, and it is expected that residential complexes will soon have more electric vehicles than those powered by petrol, diesel, or CNG.

Residents who own electric vehicles will have the convenience of charging their vehicles at these units on a rotational basis, with the cost of electricity consumption being covered by the Resident Welfare Association (RWA) from the monthly maintenance fees paid by residents. This move aims to make EV charging easily accessible and affordable for residents.

Experts in the electric vehicle industry highlight the availability of two types of chargers: basic chargers provided by vehicle manufacturers along with the car, and advanced chargers that can be purchased separately or accessed from strategic charging points across the city. The provision of advanced chargers within residential complexes is seen as a positive step, as these chargers are faster and more efficient. They enable residents to charge their vehicles quickly, with minimal energy consumption.

Officials from the Jaipur Development Authority (JDA) mention that several building plans have been submitted recently, including provisions for vehicle charging units. While such provisions are mandatory for Green Buildings according to building by-laws, many builders are going beyond the requirements and incorporating EV charging facilities even in regular residential complexes. This trend reflects the increasing focus on sustainable and future-oriented infrastructure within the real estate sector in Jaipur.

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