Green signal

Vinod Behl

The notification of the Ministry of Environment, Forest and  Climate Change for easing environmental approvals by exempting  residential projects up to built up area of 1.5 lakh sqm from  environmental clearance, is a step forward towards single-window clearance system and may well help speed up building constructions, but the challenges on ground remain. Earlier this year,the Environment Ministry had  extended the relaxed  environment norms from 20,000 sq m to 50,000 sq m.  And prior to that in 2016, the relaxation was extended to projects measuring 5,000 sq m to 2,0000 sq m. The recent notification of exempting  projects of up to 1.5 lakh sqm built up area, however, makes it  mandatory for townships, educational and health projects to seek environment assessment report.

Empowering urban local bodies

What is significant about the fresh notification is the fact that Urban Local Bodies (ULBs) and municipalities have been empowered to grant building permission to projects, provided they fulfill environmental conditions by way of self-declaration and self-certification. These environmental conditions are to be integrated in  the building bylaws of all the states and Union Territories. In order  to be eligible for fulfilling these conditions, the projects need to  take to rain water harvesting, water-efficient appliances,waste  management and energy-efficient systems, renewable power, air pollution and noise control measures. The purpose of empowering local bodies to substitute environmental clearance approval with self-declaration, according to D S Mishra, Secretary, Ministry of Housing,  is to enhance ease of doing business with a view to  boost affordable housing to fulfill the government’s mission of 'Housing for All by 2022'.

Industry’s thumbs up

Industry experts have also given a thumbs up to this move as easing of environmental norms will give a big push to  the housing sector and would help developers and home buyers get the benefits of reduction in timelines for fulfilling environmental norms for housing. According to Niranjan Hiranandani, President, NAREDCO, “Liberalising norms by delegating   powers to local bodies is a welcome move. It makes lot of sense as local perspective is available on environmental clearances, resulting in faster  resolution of permissions and clearances. Going forward as local bodies gain more expertise in evaluating and granting environmental clearances, one  can expect the government to further enhance the area limit of housing projects for the purpose of exempting them from environmental clearance”.

Jaxay Shah, President, Credai National, is equally positive about this policy initiative, “The exceptionally long time taken in project approvals has been putting pressure on finance and other costs, making project costlier. And in order to offset that additional cost, developers had been passing it on to consumers. But this latest policy move to liberalise environment clearance will reduce home costs and boost housing sector".

Challenges that can’t be ignored

But then all is not hunky dory. There are challenges on the ground as Ramesh Nair, CEO & Country Head, JLL India puts it, “Most of the ULBs do not have  the required competence to integrate the building norms with the environmental provisions. And for that purpose, ULBs need to gain technical expertise and knowledge about different environmental laws”. Then there is the challenge of  environmentally sustainable development as echoed by environmentalist and many industry experts. Shubham Jain, VP, ICRA puts it, “As the ULBs are to integrate environmental norms in the necessary bylaws and issue certification, both the developers  and the local agencies  will have to be more  responsible and vigilant in order to ensure that development is environmentally sustainable in the long run”.

Industry players are of the opinion that the liberalisation of environmental norms is a step forward towards single- window mechanism which they say, should be put in place,especially as government agencies responsible for delaying permissions do not come under the purview of RERA. Even the Competition Commission of India (CCI) had recommended the setting up of an apex agency serving as a single window to coordinate with different agencies to fast track  housing project  approvals. Before a single-window mechanism comes into play, both NAREDCO and Affordable Housing Council of ASSOCHAM  call for introducing pre-approved  building plans for affordable housing projects to cut approval timelines and control  costs for this price-sensitive segment which is a key to boost housing and realise Housing for All.. dream. 

Price point

According to CREDAI with this measure, the time taken for approvals of housing projects is expected to come down by at least a year thereby making housing cheaper for homebuyers.  

— The writer is founder, Ground Real(i)ty Media