1. Demonetisation effect: Massive layoffs in construction sector in Tamil Nadu

Demonetisation effect: Massive layoffs in construction sector in Tamil Nadu

Nearly half-a-million migrant and unorganised workers in Tamil Nadu are facing layoffs in the construction sector, after the demonetisation drive announced by Prime Minister Narendra Modi on November 8.

By: | New Delhi | Updated: November 20, 2016 11:22 AM
Experts believe that the construction sector has virtually come to a standstill in the region. (Reuters) Experts believe that the construction sector has virtually come to a standstill in the region. (Reuters)

Nearly half-a-million migrant and unorganised workers in Tamil Nadu are facing layoffs in the construction sector, after the demonetisation drive announced by Prime Minister Narendra Modi on November 8. All notes of Rs 500 and Rs 1,000 were banned by the government after the decision.Experts believe that the construction sector has virtually come to a standstill in the region. Several reports from Chennai have warned of a disastrous like scenario on if the current situation is not resolved soon.

N Nandakumar of the Confederation Of Real Estates Developers’ Associations of India (CREDAI), Tamil Nadu has confirmed the report saying that builders who are members of the organisation have been asked to arrange rations for workers at their shelters, a ‘The Indian Express’ report has said.

He further said that on an average, there will be about 100 to 200 workers workers at a single project. In Chennai, CREDAI alone has 130 members and many builders of the association have decided to supply rations immediately as the situation isn’t good.

Even as a labour department official told the paper that more than 200 major construction projects in the Tamil nadu capital have been either affected in the last four days, CREDAI and other other associations said almost 1,000 major projects in Chennai and Kancheepuram districts have been affected.

The managing director of BSCPL, B Seenaiah, , said the impact on the construction sector may be between 30 to 40 percent due to demonetisation. He added that as the payments from buyers have stopped, the contractors are unable to pay money to their workers and if the crisis remains longer, whole economy is going to be affected.

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