The rising level of air pollution in the country’s financial capital, Mumbai, has become a cause for concern, leading the Union government to write to the Maharashtra government on the issue. Moneycontrol takes a look at whether, as many believe, a rise in the number of real estate and infrastructure projects underway is the primary reason for the jump in air pollution levels in the city.
Also, has construction activity more than doubled on account of the 50 percent premium (fees for approval) waiver announced by the state government in 2021?
The Maharashtra government had, on January 6, 2021, approved a proposal to slash premium charges on real estate projects by half until December 31, 2021. However, the condition was that developers availing of the scheme would have to pay full stamp duty and registration charges on behalf of the homebuyers.
What is a premium?
In Mumbai, there are 32 types of premiums that a developer ends up paying to the authorities. Around 20 to 30 percent of the project cost goes towards these premiums, according to real estate developers. Premiums include payments made to approve construction limits or additional construction for a particular project.
Has construction of real estate projects increased?
In Mumbai’s real estate market, 1.33 crore square feet (sq ft) of construction was ongoing in the financial year 2020-21 (FY21), which went up to 1.93 crore sq ft in FY22 and more than doubled to 3.24 crore sq ft in FY23.
In the larger Mumbai Metropolitan Region (MMR), 3.67 crore sq ft of construction was ongoing in FY21, 5.34 crore sq ft in FY22, and 7.28 crore sq ft in FY23, according to data from Liases Foras, a real estate research firm.
"The growth in supply and construction is driven by the discounts in the premiums offered by the state government to the developers, the increase in the FSI (floor space index, the ratio of the building to the area of land it is situated on), and the growth in the housing market of MMR. The supply-side incentives have boosted the housing production and economy of the state. However, it has also increased pollution," said Pankaj Kapoor, Managing Director at Liases Foras.
Also read: Maharashtra cabinet clears proposal to cut govt levies on real estate by 50% until Dec 31, 2021
How much pollution do real estate projects cause in Mumbai?
According to a letter from the Ministry of Environment and Forests to the Maharashtra Pollution Control Board, there are multiple reasons for the pollution, apart from real estate projects.
In the letter written on October 26, the Union government suggested daily cleaning of roads with recycled water, monitoring garbage burning (mentioning that it was widespread), and monitoring whether rules for real estate projects and mega infrastructure projects are being followed in the true spirit or not.
“The authorities are to focus on enhancing green cover like parks and open spaces. Over the last four years, a substantial number of trees have been cut down to make way for infrastructure projects such as the Mumbai Metro and Bullet Train Project. Trees play a vital role in mitigating air pollution by capturing suspended particulate matter,” the letter said.
Further, the central government said that emergency measures and 'stay-at-home' advisories could be put in place. With better data gathering, monitoring will improve, and such practices can be controlled, the letter added. The Union government has also suggested wind pattern analysis to identify the sources of pollution.
Also read: Mumbai air pollution: BMC issues pollution control guidelines to 6,000 construction sites
What do developers have to say?
Maharashtra Chamber of Housing Industry, Mumbai’s real estate developers’ body, has said that it had issued guidelines to all members much before the Brihanmumbai Municipal Corporation issued its directions to contain air pollution.
“The installation of air quality monitoring equipment, sprinkler systems, and other measures are not just recommendations but essential steps to combat air pollution effectively," said Keval Valambhia, Chief Operating Officer (COO) of the Maharashtra Chamber of Housing Industry.
He said that air pollution was not just due to real estate projects; other factors too had contributed to it. It is clear from the letter of the Central government to the Maharashtra government.
“At the same time, we are not washing our hands off our responsibility towards sustainability and the environment," Valambhia added.
Construction activity and air pollution
Particles with a diameter of 10 micrometres or less (technically known as PM 10) are responsible for 26 percent of construction-related pollution in Mumbai, while PM 2.5 accounts for 15 percent of the pollution, said Dr Gufran Beig, Chair Professor, National Institute of Advanced Studies at the Indian Institute of Science, Bengaluru, and Founder Project Director, System of Air Quality and Weather Forecasting and Research (SAFAR) India.
“However, construction activity is among several other factors that contribute to air pollution in Mumbai. The fact that the AQI (air quality index) is going up in Mumbai with PM 10 as lead particles resulting in poor visibility and poor air quality has to be from bigger particle sources,” said Beig.
He added, “Since construction dust is a prime source of coarser particles, the spike in AQI may be attributed to big-ticket infrastructure projects. The air quality in Mumbai for the next two months is expected to remain concerning due to the onset of winter when an inversion layer comes down and the temperature cools. From January on, the winter season impact fades out in Mumbai," Beig added.
Also read: 5 real estate micro markets homebuyers should watch out
The overall AQI in Mumbai was moderate at 139 at 3.10 pm on October 30, compared to over 250 between October 20 and 22, a level considered poor and concerning for those suffering from respiratory issues.
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