Real estate developers across the country have approached the government, raising concerns over a recent National Green Tribunal ruling that requires them to secure environmental clearances for projects from central authorities as against state agencies, saying the shift will delay projects and drive up operational costs.
Until now, the State Environment Impact Assessment Authority (SEIAA) used to grant environmental clearances to real estate projects. This system allowed local authorities, familiar with the regional geography and specific regulations—since land is a state subject—to efficiently approve projects tailored to the area's needs.
But an NGT judgment in August unilaterally reversed this situation and directed the ministry of environment & forest (MOEF) to get all real estate projects appraised by the Sectoral Expert Appraisal Committee (SEAC) at the centre.
“This shift has introduced additional layers of complexity and delays, affecting project timelines and driving up operational costs, which could hinder development activities, particularly for smaller players in the industry,” said Hari Babu, national president of realty developers’ body, the National Real Estate Development Council (NAREDCO).
According to him, realty industry projects can be granted a special package and continue to be assessed at the state level by the respective SEIAA to boost housing infrastructure in view of the Pradhan Mantri Awas Yojna.
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