Guwahati centre chairman of the BUILDERS ASSOCIATION of INDIA

Guwahati: The Builders Association of India is an 82-year-old entity founded in 1941 in Pune by an ex-government engineer Brigadier C.V.S Jackson. The Mumbai-headquartered association with 200 centres and 150,000-strong membership, is the apex body for builders in India. It is the single body representing the civil engineering construction sector in the country. 

In a free-wheeling interview to Business Northeast correspondent Priyanka Chakrabarty,  the Guwahati branch chairman Bijay Kumar Saraf tells us that things are looking up since the last five years. He talks about a range of issues including the demand for uniform taxation in the Northeast, a reduced rate of GST and better sops for the real estate sector. The association coordinates not only within the construction sector but also negotiates with central and state governments in Northeast for growth of the sector.

Q: Tell us about the role and operation of the Builders Association of India in Assam

A: We are looking at the development of the builder’s fraternity. We coordinate between the Guwahati centre and the other centres. Generally, it coordinates between the government and contractors if they are having an issue with payments, rates, taxation, laws, penalties, etc. For so many years we have been fighting against high cement prices.

In the northeast, the price is very high. In other states compared to the Northeast, the price is very low. We are coordinating with the Finance Ministry as well regarding this. Thus, in every aspect like Taxation, GST, VAT, Labour laws, Forest Penalty, Forest Royalty and all. Wherever the builders and all face any difficulty and all then we coordinate with the concerned department and department and all and we try to help our members.

Q: What is your role as the chairman?

A: Our national president is Nimesh Patel. Under them, we have a branch in Guwahati. Presently, I am the chairman. Recently, in a seminar here, we invited the joint director of town and country planning Deepak Bezbaruah, and the town planner Debraj Kalita from GMDA.

On that day, people presented on future developments. Our theme was Vision 2030 Urban Guwahati. In that seminar, we came to know about developments, and plans of government where the roads are coming, how the bridges are coming, how the airport is connected. The vision of the government and all. We keep on doing this kind of seminar by which our members can come to know what kind of investment the government is doing and understand where we can do our future projects. We can also find out where we can play a crucial role in the development of the city and like that.

Q: Please tell us about your association with the Build and Wood Expo.

A: This is the second expo in Guwahati. We support such exhibitions all over India. Not only this event we are supporting in getting permissions, getting stall bookings. We do this because our contractors benefit from this type of exhibition.

At this expo, there is a scope to know about the latest machinery, latest innovations, etc. We can find what kind of machinery we can do for exacerbation of soil, in lifting cranes and lifts. Many innovations are there and we are not bound to go to their factories and get the know-how over there. Here, we can easily see the demo of the machines and all. Many innovative projects and products are coming which are helpful for our construction industry as well. We can get them all in the same place.

We have 135 members now in Guwahati. All the members cannot go outside to find some products and services. We get everything here. Suppose the same type of machinery is dealt with by three companies. The market becomes competitive. We get good rates over there. We can place orders there.

Q: What are the issues that are being faced by the Builder’s Association of India particularly in Assam and other northeast India?

A: In the last five-six years, the difficulties have been decreasing.

Before that, transportation was a major bottleneck in Assam. But nowadays, roads are becoming good. Toll gates and check gates have been abolished after the implementation of GST. The logistics have been a little faster as well. Projects are implemented slowly because of the weather conditions.

In the northeast, a uniform policy of taxation should be there. The government is charging 28 percent on cement, and 18 percent on steel. The central body is fighting with the government. A memorandum has been submitted to Assam and the central government to decrease the GST and make a uniform percentage. The matter is under the Finance Ministry right now. Let’s see what happens. There should be tax relaxation for the real estate sector as well as for affordable housing can be promoting.

Q: Real estate usually suffers from liquidity issues. What are your issues with the banks?

A: Banks have kept the builders and real estate developers on the negative list. They do not provide loans easily to builders and contractors. This is because many developers are lacking in finance. Thus they fail to execute their projects fast.

If they finance also they take security money three times more. Moreover, housing loans can be promoted if the banks all decrease their interest rate. The housing loan interest rate is the same. Hardly a 1-1.5 percent difference is there. In normal interest rates and housing loan interest rates, banks are charging higher interest rates in all sectors. If they decrease any loans in the real estate sector the sales and all will boom in the real estate market.

Q: Please let us know about your upcoming engagements and plans for improving the condition of the construction industry in India.

A: We are in regular contact with GMC GMDA and the urban ministry. It is regarding bye-laws which they are changing for the fast development (of the urban landscape). We regularly conduct seminars also.