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Demonetisation slows down construction work in Ggn

Demonetisation slows down construction work in Ggn
Under-construction projects in Gurugram, most of them already running behind schedule, have been further been hit due to demonetisation of Rs 500 and 1,000 notes.

With a huge number of labourers not reporting to work, activities at the construction sites has again slowed down.

Most of the buildings that include commercial as well as residential projects is dependent on huge sets of labourers. Many of these labourers are paid through cash on a daily basis. Post demonetisation, most of the labourers have stopped coming for work as there is no cash to pay them. 

Not only is the non-payment to labourers affecting the construction work but a notable delay in getting the required materials for building activities is also slowing down the construction activities. 

Earlier too, construction activities in the city were severely affected due to the authorities’ strict measures following the deadly pollution levels which prevailed in the city post Diwali. 

Most of the builders and contractors in the city  have expressed concerns that the present crisis will cause further losses to their business.

In highlighting that why most of the labourers are paid through cash, a contractor involved in the commercial project said:  “Getting labourers has always been one of the biggest challenge in construction projects. There are a lot of unskilled people who are required in construction activities. Most of them come from outside to earn some money. These people are only paid through cash as they do not have bank accounts.”

The contractor further added: “Most of the developers today are under losses and therefore, have to outsource their work to contractors who in turn are dependent on their labourers. Now, with the contractors and the labourers both reeling under the shortage of cash, the developers as well as consumers will bear further losses.”

Even after two weeks after the announcement of demonetisation, the city is reeling under the crunch. Most of the banks and ATMs on Wednesday again fell short of cash. 
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