Only few takers for fast-track realty projects in Maha

Maharashtra government officials say that there has been a poor response to the State government’s offer to fast-track construction projects by 18 months if real estate developers opt for a green building certification process.

Developers have applied for certification for only 15 out of 300 projects, according to a government official. Union Ministry of Environment and Forests (MoEF) guidelines stipulate that every project that involves construction of 20,000 sq.mt. and investment of Rs.5 crore or more needs green clearance from the State government’s Environment Ministry.

Towards this end, the Maharashtra government has formed two State-level expert appraisal committees (SEACs)—one for the Mumbai Metropolitan Region (MMR) and the other for rest of the state. SEAC approval can take up to 18 months, which means almost every real estate project in the MMR region and cities such as Pune are delayed to this extent.

To address the issue, the State government announced in August 2011 that projects with a green building certification would be given priority, incentivising builders to reduce the SEAC waiting time. Green buildings use less water, conserve energy and generate less waste.

Hardly any developers are interested in getting a green building tag for their building and jumping the queue, said Maharashtra principal secretary, environment, Valsa Nair Singh. Developers of only 5 per cent projects out of 300 projects pending before the SEAC, have opted for a green certification to jump the queue. The rise in land prices and other input costs have deterred residential developers from opting for green buildings, said experts.