The real estate sector in Kolkata is facing acute labour shortfall. The crunch in skilled and unskilled labour that first became apparent a couple of years ago, has turned into a full-blown crisis with the shortage in now pegged up to 50%. The deficit situation has not only escalated wages, consequent project delays has led to cost over-run.
According to Mr. Sanjay Jhunjhunwala, Chief Executive, Mani Group, "Labour shortfall is one of the biggest problems currently facing the real estate sector. While there is crisis across the country, it is more acute in West Bengal as wages are lower than either south or west. With masons tough to come by, brickwork is a problem area"
There is also a similar shortage of skilled manpower like fitters and rod binders.
The supply manpower to real estate projects, the crisis precipitated after migrant labour from Bihar, Madhya Pradesh , Orissa & East Uttar Pradesh the mainstay of construction activity in the city began depleting about 2 years ago.
The MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act ), the job guarantee programme by central govermnet that provides 100 days of employment to a member of each family, has led to this situation. People now prefer to stay in their villages than travel elsewhere to earn more. The MGNREGA has substantially reduced the flow of labour supply to industries like construction industries like real estate and infrastructure sector.
Mr. Pradeep Chopra, Director, PS Group said, ''If 200 labourers are required in a day, we get only about 100. This is affecting the progress of projects. While some projects are getting stalled, most of them are delayed"
By assuring minimum wages, the Act has also raised the cost of unskilled and semi-skilled labour.
Mr. Pradeep Sureka, Director , Sureka group said,'' The labour costs have shot up by 60-65% in the last couple of years. The revised wage is Rs 160-165 for an unskilled labourer and Rs 250-275 for a mason. With labour comprising 30% of the overall construction cost, the wage hike has had a significant impact on home price.
According to Mr. Sanjay Jhunjhunwala, Chief Executive, Mani Group, "Labour shortfall is one of the biggest problems currently facing the real estate sector. While there is crisis across the country, it is more acute in West Bengal as wages are lower than either south or west. With masons tough to come by, brickwork is a problem area"
There is also a similar shortage of skilled manpower like fitters and rod binders.
The supply manpower to real estate projects, the crisis precipitated after migrant labour from Bihar, Madhya Pradesh , Orissa & East Uttar Pradesh the mainstay of construction activity in the city began depleting about 2 years ago.
The MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act ), the job guarantee programme by central govermnet that provides 100 days of employment to a member of each family, has led to this situation. People now prefer to stay in their villages than travel elsewhere to earn more. The MGNREGA has substantially reduced the flow of labour supply to industries like construction industries like real estate and infrastructure sector.
Mr. Pradeep Chopra, Director, PS Group said, ''If 200 labourers are required in a day, we get only about 100. This is affecting the progress of projects. While some projects are getting stalled, most of them are delayed"
By assuring minimum wages, the Act has also raised the cost of unskilled and semi-skilled labour.
Mr. Pradeep Sureka, Director , Sureka group said,'' The labour costs have shot up by 60-65% in the last couple of years. The revised wage is Rs 160-165 for an unskilled labourer and Rs 250-275 for a mason. With labour comprising 30% of the overall construction cost, the wage hike has had a significant impact on home price.
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