HomeNewsOpinionTax breaks can incentivise reprocessing of construction waste

Tax breaks can incentivise reprocessing of construction waste

Indian cities reprocess a mere one percent of construction waste. Planned tax incentives can push this into an investment opportunity. As natural calamities escalate, these measures need to be taken sooner than later

August 03, 2023 / 11:18 IST
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construction waste
The buildings and construction sector currently account for over 40 percent of global carbon emissions, according to McKinsey, World Green Building Council and World Bank sources.

Over 400 mm of rain fell in the Raigad district in Maharashtra between July 17 and 19, leading to the collapse of a section of the hills which buried the Irshalgarh village and caused 16 deaths. A few days later the Matheran hill station developed a crack about 100 metres long and six feet wide. Climate change-induced intense rainfall is here to stay in the world and in many places in India. But intense mining of these hills to meet the ever-increasing demand from the construction industry that is poised to touch $1.4 trillion by 2025 (Economic Survey estimates) is creating many more problems in the several ranges of the western ghats, as predicted several decades ago by ecologist and environmentalist Madhav Gadgil.

Managing Construction Waste

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On the other hand, cities are struggling to manage construction debris from rapid redevelopment across India to house the additional 15 percent of the population that will take urbanisation in the country from 35 percent to 50 percent in a few years. Currently, India is believed to be producing about 150 MT of construction waste, accounting for 35-40 per cent annually of global construction and demolition (C&D) waste. It accounts for 20 percent of municipal waste according to estimates by Central Public Health and Environmental Engineering Organisation (CPHEEO). In 2020, the Centre for Science & Environment estimated that India processes just one percent of its C&D waste.

Balancing that demand and supply mismatch is a simple enough solution that policymakers could very easily incorporate into building norms. Today technology allows reprocessing of construction debris to extract aggregates and material that reduces the need for fresh mining and extraction of material. This circularity of materials gives the construction industry many benefits. The buildings and construction sector currently account for over 40 percent of global carbon emissions, according to McKinsey, World Green Building Council and World Bank sources. So, for Godrej Construction which set up a recycling plant in Vikhroli in Mumbai, corporate responsibility was the driver. By focussing on using recycled building materials for reducing embodied carbon emission, addressing the operational carbon emission and adopting a net zero design approach by choosing lifecycle operations for greener construction, explains Anup Matthew, the group went for green as a concept. It pulverises concrete debris into fine recycled aggregates, that are used for manufacturing various types of solid, hollow, insulating concrete blocks and other customised prefabricated products.