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Homebuyers fear more delays following ban on construction in NCR

The Commission for Air Quality Management invokes Stage III of the Graded Response Action Plan, including a ban on non-essential construction and demolition in the National Capital Region

December 30, 2022 / 19:57 IST
(Image: Reuters)

Software engineer Deepima Dwivedi has been waiting for possession of her flat in Greater Noida West, which was to be delivered more than a year ago. She is paying rent on the flat where she lives presently.

The delivery of her flat has been delayed because of an intermittent ban on construction and demolition activity owing to rising pollution levels in the National Capital Region centered on Delhi.

“I had booked the flat around four years back and it was scheduled to be delivered at Diwali last year. I am compelled to live on rent as I have not received possession of my flat on time. The developer has cited the COVID-19 pandemic and construction ban due to pollution as the main factors behind the delay. The new deadline is now Januarym but seeing the current scenario, it seems unlikely,” Dwivedi, who lives in Noida sector 77, told Moneycontrol.

The Commission for Air Quality Management on December 30 invoked Stage III of the Graded Response Action Plan (GRAP), which seeks ban on non-essential construction activities and may lead to more delays in construction projects.

GRAP is an emergency response system that will be put into action when air pollution levels reach a certain point. When the AQI is in the "poor" category (201 to 300), Stage 1 of GRAP is activated. The second, third and fourth stages are to be put in place three days ahead of the AQI reaching the ‘very poor’ category (301 to 400), ‘severe’ category (401 to 450) and ‘severe +’ category (above 450).

GRAP Stage-III

This is the third time that GRAP stage-III was invoked this winter. It was first implemented on October 29, but was revoked on November 14. It was again implemented on December 4 but was lifted on December 7 as the air quality improved. It was further invoked on December 30.

The order issued by the CAQM said that the sub-committee observed that the air quality witnessed further deterioration over the last 24 hours.

“The AQI in Delhi has slipped into ‘Severe’ category owing to calm wind and stable atmospheric conditions. Therefore, in an effort to prevent further deterioration of air quality, the sub-committee decided that all actions as envisaged under Stage III of the GRAP – ‘severe’ air quality (DELHI AQI ranging between 401-450), be implemented in right earnest by all the agencies concerned, with immediate effect in the NCR, in addition to all action under Stage I and Stage II of the GRAP,” the order said on December 30.

Under GRAP Stage III, all construction and demolition activities are prohibited, except those necessary for ensuring national security, defence, healthcare and development of railways, airports, metro rail, interstate bus terminals, roads, flyovers and other public works.

Delhi's 24-hour average AQI stood at 399 at 4 pm on December 30.

Homebuyers bear the brunt

Avnish Mishra, who has also invested in a property in a high-rise in Greater Noida Extension, is also facing a similar challenge as Dwivedi. He is yet to receive possession of his home even after a year’s delay.

“The delivery of my flat was due in November last year but it was not delivered. So instead of moving into my flat I continue to pay Rs 17,000 per month as rent. Whether it is the pandemic or the construction ban due to pollution, it is the homebuyer who is always at the receiving end,” Mishra said.

According to research by the real estate company ANAROCK, over 400,000 homes are at different stages of construction in the Delhi-NCR region.

A ban on construction, whether it is small of big, can delay a residential project for three-four months. Real estate experts estimate that there are around 800 major construction projects of over 500 square metres in Delhi.

According to the Decision Support System for Air Quality Management in Delhi, construction in the national capital accounts for 0.26 to 2.5 percent of total pollution.

The Decision Support System tracks the contribution of various factors to pollution and also forecasts likely contributions on the coming days.

It showed that the energy sector accounted for 0.5-1.5 percent and road dust for another 0.5-1.5 percent of pollution between December 5 and 10.

On December 29, the contribution of pollution through construction was 1.05 percent at 10 am in Delhi and 0.65 percent at the same time on December 30, the data showed.

Model code urged

Haryana State Pollution Control Board (HSPCB) Chairman P Raghavendra Rao had last month urged the National Real Estate Development Council (NAREDCO) to come up with a model code of pollution control so that feasible construction is not banned by the government during winters, when pollution levels shoot up to alarming levels because of stubble burning in northern India.

Health is a very important issue and cannot be neglected, Rao said, adding that developers should come up with solutions supported by research/ data, which when adopted will not cause higher pollution.

“We are open to all practical solutions. If NAREDCO can come up with such a model which ensures that construction and demolition activities will not lead to higher levels of pollution, (and which is) vetted by research and enough data, then it can be thought upon,” he said.

Rao suggested that developers adopt dual fuel sets, such as gas sets and generator sets to spur construction, with gas-based sets accounting for not less than 60 percent, and generator sets 40 percent.

Risk of cost inflation

Parveen Jain, chairman of NAREDCO, said non-polluting construction activity such as plumbing, electrical work, steel binding and shuttering that are dust- and pollution-free should be permitted.

“Establishing a restriction on construction sites will delay project deliverables and be placing developers at risk of cost inflation. Project timeframes are essential for project feasibility and customer experience at this time of heightened home buying emotion,” Jain said.

Rajat Agarwal of Amanta Homes, a south Delhi- based builder, said the construction ban will result in delay of at least two months in the delivery of flats.

“The delay not only causes trouble to the homebuyers, but also put us under pressure to somehow meet the deadline. Such bans also increase the input cost as it takes time and money to resume a halted construction at any site. Apart from this, the builder also has to face challenges in retaining labour at the site as they tend to go home whenever the work stops,” Agarwal, who has ongoing projects in the CR Park and Anand Niketan areas, said.

Also Read: Construction ban every year citing fall in air quality delays real estate projects by at least 3-4 months

He added that a construction ban also creates a problem of survival for construction workers as they lose for the duration of the halt.

Precautionary measure

Agarwal suggested that the government study and analyse how much construction contributes to pollution and clamp restrictions based on its findings.

Environmentalists say the ban on construction is a precautionary measure.

“Construction activities do pollute the environment. However, their share may be less than other contributing factors. Health of the people is paramount and there is no harm in banning construction activities for a brief period as a precautionary measure,” environmentalist and lawyer Akash Vashistha said.

Ashish Mishra
first published: Dec 30, 2022 07:57 pm

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