CREDAI Advocates for Expedited Environmental Clearances to Meet Escalating Demand
According to CREDAI, real estate developers can only satisfy the increasing demand if the Ministry of Environment accelerates its clearance processes.
CREDAI, which is the premier organization representing real estate developers, has called on the government to expedite environmental clearances. The Confederation of Real Estate Developers Association of India implored the government to move away from "antiquated laws" to promote urban development and housing.
CREDAI voiced strong support for implementing pragmatic strategies capable of alleviating the severe housing shortage. This apex body representing developers specifically targeted recommendations towards all governmental departments, especially the Ministry of Environment.
Mr. Lalit Kumar Jain, the National President of CREDAI, criticized the Environmental Ministry, asserting that this organization delays housing projects by up to five years. He mentioned that a significant number of housing projects have not yet received the vital Environment clearance which has become problematic for real estate builders and developers.
Furthermore, Mr. Jain from CREDAI emphasized the rising demand for residential projects and suggested that the government establish a comprehensive checklist to accelerate the resolution of environmental clearance issues. CREDAI considers this strategy as the only viable solution.
Apparently, developers seem to misunderstand the Environment department's role in residential real estate projects, particularly those approved by the Development Authority which conform to the Authority’s regulations.
Mr. Jain also stated that the city officials approve the master plan for each real estate project. No project proceeds without obtaining prior consent and approval from the Authority.
Specifically, he questioned the necessity for the Environment Department to involve itself in areas such as sewer systems, building heights, and the locations of fire stations, which are integral to civic plans rather than being direct environmental concerns.
Instead of compromising environmental quality, he proposed that the department creates a check list that covers all key areas to save time and make approvals faster. Further, that the planning authority should have the powers to implement the department's rules.
Mr. Jain advocated for reforms that will save time by making clearance processes faster and smoother. He emphasized the urgency of implementing these reforms to improve operations.
The real estate industry, especially the housing sector, stimulates economic growth. Therefore, the economy could be negatively affected if real estate developers cannot deliver projects on schedule.
Moreover, Mr. Jain called for comprehensive reforms in land, taxation, administration, and banking to encourage real estate business growth and to provide financial benefits to affordable housing projects.
According to a McKinsey report, the demand for affordable housing is predicted to reach 38 million homes by 2030, up from 24.71 million in 2007 and 26.53 million in 2011.
The annual demand includes approximately 700 million square meters for residential and 900 million square meters for retail. These figures are based on evaluations in Mumbai and two similar cities.
CREDAI maintains that only the environment ministry expediting clearances can enable real estate builders to meet the growing demand.