The worsening pollution in Delhi-NCR has once again brought construction activities to a standstill under Stage 4 of the Graded Response Action Plan (GRAP). As the air quality index (AQI) breaches the "severe plus" category (>450 AQI), stringent measures have been put in place, including a ban on all construction and demolition (C&D) activities. However, real estate developers argue that projects complying with RERA’s strict environmental standards should be exempt from such bans. This blog will explore this pressing issue, considering expert opinions, the impact on the real estate market, and potential solutions.
Why Is There a Construction Ban in Delhi-NCR?
The decision to implement a blanket ban on construction under GRAP Stage 4 is aimed at curbing further degradation of air quality. Construction activities are known to release significant amounts of particulate matter (PM10 and PM2.5), contributing to the already hazardous levels of pollution in the region.
What Is GRAP and Its Stages?
The Graded Response Action Plan categorizes air quality levels into four stages:
Stage I – Poor (AQI 201-300)
Stage II – Very Poor (AQI 301-400)
Stage III – Severe (AQI 401-450)
Stage IV – Severe Plus (AQI >450)
Under Stage 4, stringent measures are taken, including the halting of construction work to limit dust emissions.
The Developers’ Argument for Exempting RERA-Compliant Projects:
Developers and real estate bodies, such as NAREDCO and CREDAI, argue that RERA-compliant projects should be exempt from the construction ban for several reasons:
1. Adherence to Environmental Standards:
Stringent Norms: Projects under RERA already meet rigorous pollution control standards, minimizing their environmental impact.
Dust Mitigation Measures: Use of water sprinklers, anti-smog guns, and covering construction materials help to reduce particulate emissions.
2. Economic and Financial Impact:
Project Delays: Halts disrupt timelines, impacting financial plans and obligations to both buyers and financial institutions.
Cost Implications: Delays can increase project costs due to penalties for late delivery as per RERA mandates.
3. Employment and Livelihood:
The real estate sector employs a significant number of unskilled and semi-skilled laborers. A blanket ban can severely affect their livelihood.
Experts’ Views on the Issue:
G Hari Babu, National President of NAREDCO:
“RERA-approved projects, which adhere to stringent pollution-control measures, should not be grouped under this blanket ban. Halting such regulated construction activities disrupts project timelines, impacts financial obligations, and causes ripple effects across the entire ecosystem of suppliers, contractors, and laborers.”
Manoj Gaur, President, CREDAI-NCR:
“Pollution control is essential, and CREDAI extends its support to the CAQM mandate. However, it should also be understood that real estate projects already adhere to stringent pollution control standards as required by RERA. Activities that do not increase dust levels could be considered for exemption.
Counterpoint: The Environmental Perspective
Environmental experts argue that air pollution and public health must take precedence over economic considerations. Akash Vashishtha, an environment lawyer, emphasizes, “Any activity that has the potential of causing pollution or is a direct source of PM10 levels should be governed by pollution control regimes. The right to a clean environment is fundamental and cannot be compromised.”
Balancing Public Health and Economic Stability
To strike a balance between environmental safety and economic stability, policymakers could consider:
Selective Exemptions: Allowing construction activities for RERA-compliant projects that demonstrate minimal emissions through real-time monitoring.
Improved Monitoring: Using IoT and AI-driven solutions to monitor dust levels on-site to ensure compliance.
Temporary Allowances for Near-Completion Projects: Allow projects nearing completion to continue work to meet timelines, thereby reducing financial strains.
Impact on the Real Estate Market:
Current Market Trends:
The NCR real estate market has witnessed a surge in housing prices, driven by strong demand and infrastructure growth. However, pollution concerns and construction bans could dampen buyer sentiment.
Noida has seen the highest rise in prices at 152% since 2019, but supply constraints due to bans can impact future growth.
Property Prices and Environmental Concerns:
According to Prashant Thakur, Director and Head – Research, ANAROCK Group, “Real estate prices in most Indian cities are not as influenced by environmental factors as they are by affordability and job opportunities. However, consistent pollution and construction halts could eventually impact long-term investment.”
Conclusion: The Path Forward
While the need for pollution control is non-negotiable, real estate stakeholders believe there can be a middle ground that safeguards public health without disrupting the economic engine of the Delhi-NCR Pollution Real Estate Construction Project. Exempting RERA-compliant projects from construction bans, under stringent monitoring, could be one such solution.
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