Retail Trade Lost Rs9 Lakh Cr of Business in 60 Days: CAIT
India's retail trade lost business of around Rs9 lakh crore during the past 60 days of the nation-wide lock-down, the Confederation of All India Traders (CAIT) said.
 
In a statement, the traders' body also said that in the past week since the restrictions were eased on Monday, only about 5% of the business could take place and 8% of the workforce were able to resume.
 
It further said that the loss of business also resulted in a revenue loss of about Rs1.5 lakh crore to both Central and state governments on account of GST.
 
"The traders across the country are facing acute financial crunch and in absence of any policy support from the government are most worried about future of their business," it said.
 
About 5 lakh outstation traders used to come Delhi to procure goods from wholesale markets of Delhi but due to non-availability of transport, the wholesale markets in Delhi remained deserted in last one week, said the statement.
 
The shortage of labour, non-availability of transport and negligible footfall of customers is leading to acute financial crunch for traders and may also kill the retail trade of the country involving nearly 70 million traders providing employment to 400 million people and generating an annual turnover of about Rs50 lakh crore.
 
"The crisis has further deepened because of utter neglect of traders both by Central and state governments in matter of hand-holding," it said.
 
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    IL&FS to Sell its Entire 26% stake in OTPC; Invites EoI
    Crisis-hit Infrastructure Leasing and Financial Services (IL&FS) has decided to sell its entire 26% stake in ONGC Tripura Power Company (OTPC), its joint venture with state-run ONGC. IL&FS has expressions of interest (EoI) to divest the 26% stake, it holds through IL&FS Financial Services (IFIN) and IL&FS Energy Development Co Ltd (IEDCL). 
     
    OTPC operates a fully operational natural gas based 726.6 MW power plant located in Palatana (Tripura), supplying power to the energy deficit region of north east India. This plant is one of India's largest gas-based power project.
     
    The EoI document issued by IL&FS states, "...in order to monetise the investments made by the IL&FS Group in OTPC, expressions of interest are invited for acquisition of 26% stake held by the IL&FS Group in OTPC..."
     
    IFIN and IEDCL, both subsidiaries of IL&FS hold a 13.97% and 12.03% stake in OTPC. The other shareholders of OTPC are state-run ONGC, with 50% stake, India Infrastructure Fund-II with 23.5%, managed by Global Infrastructure Partners and the government of Tripura holding 0.5% stake.
     
     
    OTPC operates its fully operational natural gas based 726.6 MW power plant located in Palatana.  In addition to the benefit of availability of local gas wells for drawing sufficient gas, OTPC also has a load-centre advantage, with access to the energy deficit north-eastern region of India as well as Bangladesh.
     
    "Consummation of any transaction pursuant to the process initiated by this EOI will be subject to necessary approvals, including, the approval of the board and requisite corporate approvals of other relevant group companies, if applicable. Further, approvals required under applicable law or from statutory authorities under the overall supervision of Justice DK Jain (retd.), and approval of the NCLT would also be required," the EoI document states. 
     
    For bidding the IL&FS stake in OTPC, corporate bodies are required to have a minimum net worth of Rs150 crore as per the audited balance sheet as of 31 March 2019 or later.
     
    Investment funds, including private equity funds should have minimum assets under management in India of Rs600 crore as of 31 March 2019 or later, or committed funds available for investment or deployment in companies incorporated in India of at least Rs600 crores only.
     
    The EoIs have to be submitted by 5pm on 8 June 2020. 
     
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    Can Reverse Migration Spur Housing Demand in Tier-2 & Tier-3 Cities Post-COVID-19?
    Indian real estate is bracing itself for a very new post-coronavirus (COVID-19) world. One significant trend may be reverse migration spurring housing demand in Tier-2 and Tier-3 cities, says a research report. 
     
    According to a report 'India Real Estate: A Different World Post COVID-19' by Anarock Property Consultants, cities like Lucknow, Indore, Chandigarh, Kochi, Coimbatore, Jaipur and Ahmedabad would be the main beneficiaries of the reverse migration of professionals who have lost their jobs in the metros, or are likely to. These returnees will benefit from the cost of living and superior infrastructure that many Tier-2 and Tier-3 provide.
     
    At present, top seven cities account for almost 70% of India's residential market, with the remaining 30% accounted for in Tier-2 and Tier-3 cities. This ratio may well change in times to come.
     
      
    According to Anuj Puri, chairman of Anarock Property Consultants reverse migration is already very visible among migrant labourers, and this trend can further percolate to skilled professionals who have been or may be off-rostered. 
     
    He says, “Smaller towns and cities would consequently see a spurt in housing demand. Primary demand may skew towards rental housing – purchase demand would initially come from local investors keen to meet the rental demand.” 
     
    “Many non-resident Indians (NRIs) will also return to India amidst dwindling job prospects, particularly in the US and European nations, which account for nearly 70% global cases. For them, the top-7 cities would be the best options but many will consider smaller cities where they can be close to their families. Finding suitable employment for reverse-migrating Indians in smaller cities may prove to be challenging," Mr Puri added. 
     
    ANAROCK’s recent consumer survey taken during the lock-down period indicates that of the respondents who preferred to invest in Tier-2 and Tier-3 cities in 2020, 61% are end-users and almost 55% are aged under 35 years. 
     
    At least 47% of respondents are focused on affordable properties priced within Rs45 lakh, followed by 34% who are looking for mid-segment homes priced between Rs45 and Rs90 lakh.
     
    The residential segment will see a manifold increase in demand for townships projects, which offer a controlled environment. 
     
    In terms of supply, township projects have less than 5% overall share in the top-7 cities as on date.
     
    Further market consolidation is expected with the increased preference for branded developers. Financially strong organised players are likely to occupy 75%-80% market share in the coming years.
     
    According to the research note, in office real estate, social distancing norms may increase the per capita office space allocations even as a segment of employees will work from home. During the past decade, per capita office space allocation reduced from 100-125 sq. ft. to 75-100 sq. ft. in the pre-COVID-19 period of January 2020.
     
     
    “Safety and hygiene will become the top priority, even as contactless operations and automation will increase. Decentralization of operations to ensure business continuity will be a trend reversal from prominent consolidations over the past few years,” the report says.
     
    In retail, Anarock sees online businesses gaining momentum. It says, “eCommerce giants have already added over 5,000 people to their delivery fleet during the lock-down period. Their consumer base expanded to senior citizens who have embraced technology in the COVID-19 era.”
     
     
    Malls have been shut for over a month and sales have nose-dived. At the same time, local shops have gained customer confidence. “Reopening the malls remains a challenge. Mall revival will come with caveats. With hygiene and sanitation taking centre stage, malls which can offer these will benefit most in times to come,” Anarock added.
     
    According to the property consultancy firm, while every segment in realty has been affected due to COVID-19, warehousing, industrial and logistics as well as data centres would be the first to recover from the impact in one to two quarters. 
     
     
    The possible recovery time for residential and commercial officer market would be four to six quarters, while hospitality, alternatives like co-working, co-living and student housing and retail would take more than six quarters for recovery from the COVID-19 impact, the report says. 
     
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    COMMENTS

    homaielavia

    1 month ago

    With slum pockets residents in Mumbai moving away, it is a rare opportunity for Govt. of Maharashtra to take over these lands, redevelop the area and build vertical accommodation for the returnees. Divide the entire slum pocket into 3. One part for business/corporate establishments, one for all Govt. offices and one for housing the returning slum residents. Sale of one-third area at premium rates to business establishments can finance restructuring of the other two-thirds. Subsequently sale of redundant high profile South Mumbai locations occupied by Govt. can generate revenue which will see the coffers of Maharashtra Govt. positive enough to facilitate welfare schemes for the people of the State who are the country's highest tax payers. What is needed is the will and the courage to counter the ganglords and land mafia.

    tillan2k

    1 month ago

    another misinformation by builders to hike property prices... building activity may increase in rural areas

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