Published On: Fri, Jan 5th, 2018

Reforms in Construction Sector Critical to Building India: BAI

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Announces 28th All India Builders’ Convention in Bengaluru


Bengaluru: The Builders’ Association of India (BAI) today emphasised on the need for immediate reforms and regulatory mechanism for the construction sector to ensure a streamlined growth, resulting in enhanced contribution to the Indian economy in the long-term.

Revealing nine critical issues affecting the sector, the BAI, which is organising the 28th All India Builders’ Convention in Bengaluru from 19th – 21st January 2018, at the Clarks Exotica, urged the Union government to expedite its concerns at the earliest. The Convention will be flagged off by the Honourable Vice President of India M Venkaiah Naidu in the presence of the His Excellency Governor of Karnataka Vajubhai Rudabhai Vala and Karnataka’s Chief Minister Siddaramaiah.


Shri. Nirav Parmar, National Treasurer, BAI; Shri. K. S. Someshwara Reddy, Secretary, Organizing Committee, BAI; Shri. B. Seenaiah, Chief Patron, BAI; Shri. H.N. Vijaya Raghava Reddy, National President, BAI; Shri. Bhishma R. Radhakrishnan, Convention Chairman, BAI; Shri S. Narasimha Reddy, Vice President, BAI; Shri. K. Subramani, Chairman, Organizing Committee, BAI; Shri. C. G. Decochake, Hon. Gen. Secretary, BAI; unveiling the convention poster of the XXVIII All India Builders’ Convention to be held in Bengaluru from 19 – 21 Jan 2018.

H N Vijaya Raghava Reddy, National President, BAI, said “BAI has identified nine core issues affecting the sector and will drive for regulations with the state and central governments. When addressed, they will help better organize the sector, which is a major contributor to India’s GDP employing more than 35 million workers. In addition, attracting FDI to the sector and fast-tracking India’s infrastructure development will be easier.


Elaborating on the proposed reforms and regulations, B Seenaiah Chief Patron, BAI, said “The Union Government has declared an INR 65 Lakh Crore investment plan for development of 100 Smart Cities, new township formats like CIDCO, DDA, MHADA, Industrial Corridor, Power Projects, Dams, Bridges, Airports and Seaports, but several issues still need to be resolved. At present, the land acquisition process has highly complex implications. We request the Government to take full responsibility of land acquisition and handover the same to contractors before awarding the contracts. The contractors should not be allowed to deal directly with the landowners, as it would result in unnecessary delays.

The subcontractors in the construction sector are still levied GST of 18% which has to be reduced further. Also, out of the Real Estate Industry GST of 18%, 6% is regarded as land value. Land valuation deduction under construction of complexes, should be based on actual cost of the land or should be based on value mentioned in the Ready Reckoner. “Blanket deduction will result in exaggeration of the land value,” Seenaiah pointed out.


He appealed to the Government set up a “Cement Regulatory Authority” to control the pricing and prevent cartelization by cement manufacturers and unfair practices. “In fact, if a regulatory mechanism is in place, the cost of house construction can be reduced to a competitive Rs 50 per sq.ft. making housing affordable for all,” he said.


Listing out the details of the convention, Bhishma R Radhakrishnan, Convention Chairman, BAI, said, “Deliberations, workshops, focused group sessions and exhibition of latest equipment, materials, and construction technology will be the focus. This is a platform for Builders, Contractors and other stakeholders to foster networking and forge domestic and international collaboration.


The Convention will evolve specific recommendations to overcome the problems faced by the Builders and Contractors. The same will be presented to the Government Departments, Agencies at State and Central Levels; Institutions engaged in Training, Formulation of Standards, Codes, Research and Development.

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