Projects worth Rs 15000 crore stalled in Gujarat due to environment clearance

In Gujarat Rs 15000 crore worth real estate projects have been stalled following a directive from the central government. According to this directive real estate builders cannot launch building projects without getting an environment clearance certificate. It was 2009 that the central government had made it mandatory for realty developers to seek this certificate from either the Union Ministry of Environment and Forest (MOEF) or its equivalent state-level ministry. The directive states that it is mandatory for construction projects spread over a maximum built-up area of 20,000 sq mt to get environmental clearance from the state-level body and larger projects will have to get the clearance from MOEF.

The directive also states that a builder after getting this clearance has to get the building plan approved by the state’s urban department. According to government sources till now real estate projects in almost all states were being approved provided the builder gave an undertaking that the environment clearance certificate would be sourced at the earliest. In the meantime MOEF issued a directive three months back to urban departments stating therein that the department must seek the clearance certificate from builders before approving the building construction project plan. The president of CREDAI Gujarat chapter, Mr. Jaxay Shah said that CREDAI is opposing this government decision because a lot of projects are getting delayed because of this.