CREDAI pointed out that the real estate builders will be able to meet the rising demand only if the Ministry of Environment caters faster clearance.
CREDAI, the apex body of real estate developers demanded the government to speed up the eco clearance. The Confederation of Real Estate Developers Association of India requested the government to avoid “antiquated laws” in favor of urban development and housing.
CREDAI strongly supported a pragmatic and practical approach to meet the severe housing shortage. The apex body of the developers recommended all government departments and especially the Ministry of Environment.
Mr. Lalit Kumar Jain, National President CREDAI, blamed the Environmental Ministry for delaying the housing projects up to five years. Most of the housing projects are not yet received the Environment clearance. This delay in getting clearance has become a severe trouble for the real estate builders and developers.
Moreover Mr. Jain of CREDAI pointed to the surging demand for residential projects. He added that by creating a comprehensive checklist the government can clear out the issues related to the environment clearances faster. According to CREDAI this is the only possible way.
Apparently the developers remain unable to understand the role of intervention by Environment department in residential real estate projects. These real estate projects had been approved by the Development Authority. These residential projects are designed as per the norms of the approving authority.
Master plan of each real estate project is approved by the city officials. No project is implemented without the prior consent and approval of the Authority, Mr. Jain added.
He further asked why should Environment Department interfere in matters like sewer system, height of the building, location of fire stations, etc. These are entirely part of civic plans and not actually the concern of the Environment department.
Without compromising environment’s quality the department can prepare a check list which comprehends all aspects. Further the planning authority should be invested with power to comply with the norms of the department.
Preparation of such a comprehensive check list will thus save the time. The clearance will be faster and smoother. Mr. Jain said that it is high time for such reforms.
Real estate industry, particularly housing industry accelerates the economy. So if the real estate developers are not able to deliver the projects in time, then there will be a slowing down of the economy.
He called for all-round reforms in areas related to Land, Taxation, Administration and Banking. These will foster the real estate business as a whole. Affordable housing schemes should be offered fiscal benefits.
As per McKinsey report demand for affordable housing is expected to reach 38 million units by 2030. Notably the same demand was calculated 24.71 million units in 2007 which rose up to 26.53 million in 2011.
Nearly 700 million square meter residential space is demanded per year. At the same time the demand for commercial space is 900 million square meters. This rate of demand is calculated on the basis of Mumbai and other two equivalent towns.
CREDAI is of the opinion that only a faster clearance by the environment ministry alone can help the real estate builders meet the growing demand.