Mumbai, October 8 (Daily Kiran) : The Construction Federation of India (CFI) recently celebrated its 25th anniversary in Mumbai, with President M.V. Satish reflecting on the organization’s journey, its collaboration with the government, and ongoing challenges in the construction sector. During this milestone event, he praised the decisions made during the 57th GST Council meeting, calling them beneficial for the industry. He also described the Reserve Bank of India’s (RBI) recent 25 basis point interest rate hike as a necessary step.
Satish noted that the CFI has successfully adopted a cooperative approach with the government to address various industry issues. He highlighted that the government has been receptive to the federation’s concerns, resulting in solutions for several pressing matters, particularly those related to GST. He emphasized the prompt governmental response to issues affecting the industry during wartime, showcasing effective collaboration.
Among the technical issues raised with the government, Satish mentioned the push for enhanced provisions related to precast construction. This has led to the incorporation of relevant clauses in tender conditions, potentially increasing activity in this area. He stated that the government is also considering the genuine demands of contractors, which he views as a vital aspect of the CFI’s journey.
Commenting on the GST Council’s recent outcomes, Satish welcomed the decisions, particularly the increase in the prosecution liability limit from one crore to five crores. He believes this change is positive for the industry and could provide relief to stakeholders. However, he noted that further examination of provisions concerning input tax credit and input tax services is necessary before forming a comprehensive opinion on their impacts.
Regarding the RBI’s policy rate increase, Satish indicated that this move was anticipated. He mentioned that industry professionals had already expected a 25 basis point rise. Given current geopolitical conditions, he warned that access to easy capital may diminish in the future, making the RBI’s decision an expected adjustment.
When asked about the future of residential property prices, he refrained from making specific predictions but acknowledged that the monetary environment would not return to previous levels of ease. He reiterated that the industry must adapt to these changes.
Leave a Comment