Medium term focus areas to overcome COVID-19 impact
AVIATION & AIRPORTS

Medium term focus areas to overcome COVID-19 impact

COVID-19 crisis is a bolt from the blue. There is no precedent of this particular strain of the Coronavirus , and hence, any projections of its impact can at best be treated as intelligent guesses.

This is Part-4 of a series of an article written by Kunal Kumar, Joint Secretary & Mission Director (Smart Cities Mission), Ministry of Housing and Urban Affairs, Government of India, on the likely impacts of the Coronavirus on India; the best strategies going forward; and the key focus areas and actions for the short, medium and long terms.

Read more on his article onCoronavirus: What have you done to our economy and society? here 

Read more on his article on Best strategies to overcome the COVID-19 impact here 

Read more on his article onKey focus areas and actions – Short term here

Read more on his article onKey focus areas and actions – Long termhere 

Key focus areas and actions for the medium term
1. The focus has to be on rapid economic revival. The government has announced a crisis management package of 1.7 lakh crore recently, which may need to be scaled up to close to 5-6 per cent of GDP considering the magnitude of the crisis. Within that package, resources would have to be found to support sectors (automobile, aviation, travel and leisure, construction , retail , etc) most severely impacted by the crisis. These sectors would have to be supported through incentives, moratoriums and easy availability of credit. NPAs, debt/earnings ratios may be allowed to be breached for a considered short term period in order to support quick revival.

2. Investments into expansion of the healthcare system would need to be continued. A major emphasis may have to be given on the development/ sourcing of a vaccine to deal with the COVID-19 outbreak. Collaboration with international agencies and being nestled in global efforts in this direction would be immensely important. States are playing the most important role at the forefront of dealing with the crisis. They face constraints in using resources for the crisis as their hands are tied with laws like the Fiscal Responsibility and Budget Management Act, 2003. It is time that the restraints applicable by virtue of the Act are relaxed for the current financial year. A free hand would have to be given to the states to ramp up testing infrastructure, health facilities and buying vaccines as per their need.

3. A new paradigm of trust-based collaboration between local government and citizens may be explored. This new paradigm shall be citizen-centric and solution-focused rather than government-centric, and problem-focused. In this new paradigm, citizens may be invited to become suppliers of resources, data, solutions and actions at the local community level. In such a paradigm of demand-side-supply creation, the citizens (demand side), become solution providers (supply side), thereby igniting a virtuous cycle of complementary value that is amplified through mutual trust. Such platforms would be of great value in not only creating awareness in society regarding important messages but can stir local action in times of crisis rapidly and in great numbers.

4. Focused attention to informal and unorganised sector should be a top priority as they are mostly lost sight of from such economic interventions in absence of proper documentation and structured institutional arrangements. However, even though gradually moving them towards formalisation should be the long-term goal of policy, it should not be a priority in the short term. NREGA could act as a great source of relief for the labour force who cannot join back work immediately. PDS systems should be expanded and extra amount of grains may be provided to large sections of the population, without bothering too much about targeting any particular economic classes. Special focus on checking malnutrition among the poor, improved outreach to the poor through ASHA workers, Anganwadis and other similar infrastructure could be looked at.

COVID-19 crisis is a bolt from the blue. There is no precedent of this particular strain of the Coronavirus , and hence, any projections of its impact can at best be treated as intelligent guesses. This is Part-4 of a series of an article written by Kunal Kumar, Joint Secretary & Mission Director (Smart Cities Mission), Ministry of Housing and Urban Affairs, Government of India, on the likely impacts of the Coronavirus on India; the best strategies going forward; and the key focus areas and actions for the short, medium and long terms. Read more on his article on ‘Coronavirus: What have you done to our economy and society?’ here Read more on his article on ‘Best strategies to overcome the COVID-19 impact’ here  Read more on his article on ‘Key focus areas and actions – Short term’ hereRead more on his article on ‘Key focus areas and actions – Long term’ here  Key focus areas and actions for the medium term 1. The focus has to be on rapid economic revival. The government has announced a crisis management package of 1.7 lakh crore recently, which may need to be scaled up to close to 5-6 per cent of GDP considering the magnitude of the crisis. Within that package, resources would have to be found to support sectors (automobile, aviation, travel and leisure, construction , retail , etc) most severely impacted by the crisis. These sectors would have to be supported through incentives, moratoriums and easy availability of credit. NPAs, debt/earnings ratios may be allowed to be breached for a considered short term period in order to support quick revival. 2. Investments into expansion of the healthcare system would need to be continued. A major emphasis may have to be given on the development/ sourcing of a vaccine to deal with the COVID-19 outbreak. Collaboration with international agencies and being nestled in global efforts in this direction would be immensely important. States are playing the most important role at the forefront of dealing with the crisis. They face constraints in using resources for the crisis as their hands are tied with laws like the Fiscal Responsibility and Budget Management Act, 2003. It is time that the restraints applicable by virtue of the Act are relaxed for the current financial year. A free hand would have to be given to the states to ramp up testing infrastructure, health facilities and buying vaccines as per their need. 3. A new paradigm of trust-based collaboration between local government and citizens may be explored. This new paradigm shall be citizen-centric and solution-focused rather than government-centric, and problem-focused. In this new paradigm, citizens may be invited to become suppliers of resources, data, solutions and actions at the local community level. In such a paradigm of demand-side-supply creation, the citizens (demand side), become solution providers (supply side), thereby igniting a virtuous cycle of complementary value that is amplified through mutual trust. Such platforms would be of great value in not only creating awareness in society regarding important messages but can stir local action in times of crisis rapidly and in great numbers. 4. Focused attention to informal and unorganised sector should be a top priority as they are mostly lost sight of from such economic interventions in absence of proper documentation and structured institutional arrangements. However, even though gradually moving them towards formalisation should be the long-term goal of policy, it should not be a priority in the short term. NREGA could act as a great source of relief for the labour force who cannot join back work immediately. PDS systems should be expanded and extra amount of grains may be provided to large sections of the population, without bothering too much about targeting any particular economic classes. Special focus on checking malnutrition among the poor, improved outreach to the poor through ASHA workers, Anganwadis and other similar infrastructure could be looked at.

Next Story
Infrastructure Urban

Larsen & Toubro Secures Contract from Defence Ministry

The Ministry of Defence, Government of India, has awarded a significant contract to Larsen & Toubro (L&T) for supplying K9 Vajra-T Artillery Platforms to the Indian Army. As per the company's project classification, the contract is valued between Rs 50 billion and Rs 100 billion. The K9 Vajra-T, a 155 mm, 52-calibre tracked self-propelled artillery platform, is an adaptation of the globally renowned South Korean K9 Thunder howitzer. It has been co-developed by L&T and Hanwha Aerospace to meet the Indian Army's specific operational needs across diverse terrains, including deserts, plains, and..

Next Story
Real Estate

Delhi-NCR Housing Market sees 25% Sales Growth

The Delhi-NCR property market has maintained its momentum during the December quarter, with housing sales and new supply estimated to grow by 25 per cent and 59 per cent, respectively, as reported by PropEquity. Data from the real estate analytics firm suggests that housing sales in Delhi-NCR are likely to rise to 12,915 units during the October-December period of this year, compared to 10,354 units in the corresponding period of the previous year. New supply in the region is expected to increase significantly, reaching 11,223 units, a 59 per cent rise from 7,072 units in the year-ago quarter..

Next Story
Infrastructure Urban

DDC Approves Five Key Projects Under Kasaragod Development Package

The District Development Committee (DDC) has approved a budget of Rs 100.08 million for five key projects under the Kasaragod Development Package. This funding is part of the Rs 700 million allocated in the State budget for the 2024-25 financial year, with administrative approval formally amended to incorporate these initiatives. The decision was made during a meeting chaired by District Collector K. Inbasekar on Saturday, December 21. The approved projects include Rs 40.99 million for constructing Udayapuram Thungal Road in Kottom Belur grama panchayat and Rs 20.56 million for setting up a ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000