The real estate industry and construction industry should try to ensure that the money collected as construction cess by the states should be used for skilling purposes, the Labour Secretary Shankar Aggarwal said.
“The real estate and construction industry should nudge the states concerned, where their projects are operational, and make use of construction cess for the skilling of the labour force for optimum realisation of their hard work,” he said during his address at the 13th National Convention of the National Real Estate Development Council.
About Rs.26,000 crore collected from various real estate and construction builders as cess over the last two decades is lying idle, Mr. Aggarwal said.
Private sector
However, the secretary also said that skilling cannot be the sole responsibility of the government and that the private sector must get involved as well.
“Skilling cannot alone be the government responsibility and developers and builders should come forward and begin to skill the labour that they engage to fulfil their construction needs,” he said.
Going deeper into the issue, Mr Aggarwal touched upon the differing roles of the private sector and the government when it came to skilling.
“Skilling should be the responsibility of the private sector also whereas the job of providing certification to endorse skills should be performed by the government. It is going to happen based on which of those acquired skills is made employable in any industry including real estate and construction.”
Land acquisition
The labour secretary said the current land acquisition act has made it almost impossible to acquire land, and has also led to delays in obtaining approvals, which delay housing projects.
“Therefore, the solution should be worked out by a process of dialogue between the farmers and those that intend to acquire their land.”
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