Realty gets boost as MOEF eases norms for construction nod

NOW, ONLY PROJECTS BEYOND 50,000 SQM WILL NEED MOEF NOD

MUMBAI: Nearly 70% to 80% construction projects in the city are likely to get faster permissions as the Union Ministry of Environment and Forest (MOEF) has now eased the approval norms for the real estate sector.

The MOEF has now mandated that any construction project will need the MOEF nod only if it exceeds beyond 50,000 square metres (sqm) in size. Till now, the nod was required for projects exceeding 20,000sqm. Any project less than 50,000sqm in size will be dealt with by the local civic body.

According to architect Vilas Nagalkar, this move will positively impact the real estate sector. “Majority of the projects in the city had to get the MOEF nod which meant time-consuming procedures. However, now, this has been removed and the approval process will be expedited.”

Nagalkar however said envi- ronmental norms such as water conservation, rain water harvesting and waste management are still present and the local civic body will be dealing with it. Even builders have welcomed the step saying red tapism involved in the process would only delay it earlier. “We had to wait for a minimum of six months to get the nod from MOEF and this delayed the projects. Any delay has a direct impact on the prices. If approvals are eased, it will result in reduction of real estate prices,” said Bhavesh Sanghrajka, CEO, Shraddha Lifescapes.

The real estate sector has been ruing that red-tapism in permission processes takes a toll on them. The result of this is that projects suffer as costs go up considerably, affecting the homebuyer in the end.