Home Latest News Losses of Rs 3,000 crore for mall owners in 8 weeks: SCAI

Losses of Rs 3,000 crore for mall owners in 8 weeks: SCAI

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Mall owners have incurred losses of approximately Rs 3,000 crore during the ongoing second wave of the COVID-19 pandemic over the past eight weeks due to lockdowns and restrictions imposed by various states across the country, according to Shopping Centres Association of India (SCAI) Chairman Mukesh Kumar.

“In terms of numbers, I can say that Rs 3,000 crore loss is for malls and around Rs 25,000 crore for retail, all categories put together,” Kumar stated in a virtual media roundtable.

He further said that typically, around 12 to 15 per cent of total sales revenue for malls “comes in from the retail side”.

Mall owners have urged state governments to allow start operation with immediate effect and let the customers experience a controlled and safe shopping experience.

“Last year, when the lockdown was imposed, RBI had announced a moratorium. This time, two months have gone without operations and there could be some amount of NPAs if a moratorium is not announced in the coming months,” SCAI Director Abhishek Bansal said.

SCAI has also sought other relief measures, including payment deferment to power companies and an extension on the renewal of existing permits and licences.

SCAI Director Pushpa Bector pointed out that shopping centres that are under development, could see a delay of four to six months on account of various factors such as short supply of labour workforce and supply constraints of raw materials.

“There will be a further phase of consolidation, wherein we see the biggest retail real estate companies consolidating their assets. I believe that the industry would be mature and there could be some new announcements of new malls in the third or fourth quarter of the financial year,” she added.