ARTICLE
6 February 2024

Construction Sector: What Does Environment Law Say?

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IndusLaw

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INDUSLAW is a multi-speciality Indian law firm, advising a wide range of international and domestic clients from Fortune 500 companies to start-ups, and government and regulatory bodies.
The construction sector in India stands as a foundation of the nation's development, fostering economic growth and infrastructural advancement.
India Real Estate and Construction

The construction sector in India stands as a foundation of the nation's development, fostering economic growth and infrastructural advancement. However, this growth in the sector should go hand in hand with environmental protection to tackle the impact of the sector on the environment. The environmental laws governing the construction sector inter alia comprises of the following framework:

  • Water (Prevention and Control of Pollution) Act, 1974 (“Water Act”) & Air (Prevention and Control of Pollution) Act, 1981 (“Air Act”):

The Water Act and the Air Act were enacted with the aim of prevention and control of water and air pollution. Given the nature of construction being carried out in the sector, permissions are required to be obtained from Central Pollution Control Board/State Pollution Control Board for obtaining consent for water use and obtaining necessary permissions for emission standards, consent to establish/consent to operate etc.

  • Forest (Conservation) Act, 1980 (“Forest Act”):

The Forest Act restricts de-reservation of forest and use of forest land for non-forest purposes. The Forest Act was amended in the month of August 2023 vide the Forest (Conservation) Amendment Act, 2023 whereby certain lands are exempted from the purview of the Forest Act. Further, the list of activities to be carried out on such lands has been expanded.

  • Environment (Protection) Act, 1986 (“Environment Act”):

projects as specified therein will require prior environmental clearance from the concerned regulatory authority before any construction work is undertaken.

  • Coastal Regulation Zone Notification, 2011 (“CRZ Notification”):

The Central Government issued the CRZ Notification with an objective to regulate and restrict construction in proximity to coastlines. The CRZ Notification lists down the construction activities permissible in the four classified zones and procedure for obtaining clearance for carrying such activities.

  • Construction & Demolition Waste Management Rules, 2016:

The aforesaid Rules were issued under the Environment Act and applies to all waste resulting from construction, repair and demolition of any structure of individual or organisation such as building material, debris etc.

  • National Green Tribunal Act, 2010 (“NGT Act”) and role of judicial forums

The National Green Tribunal (“NGT”) was established in the year 2010 in accordance with the NGT Act which is a special body for dealing with environmental disputes. We have seen an increase in judicial activism wherein NGT has imposed penalties on builders for flouting green norms. In the past, the Bombay High Court stayed all new construction proposals in Mumbai city because the State government and the local municipal authorities failed to comply with the solid waste management rules. Such actions lead to delays in completion of real estate/infrastructure projects and put an increased financial burden on the developer and subsequently impacts home buyers.

Proposed Legislative Reforms:

The Ministry of Environment, Forest and Climate Change issued the draft Building Construction Environment Management Regulations, 2022 (“Draft Regulation”) on 25 February 2022 with an aim to regulate environment management in the construction of buildings. The Draft Regulation shall be applicable for projects involving construction of buildings, having built up area of more than 5000 sq. mtrs. and shall apply to new building projects and expansion/renovation/repair of old /existing buildings. Some of the key points of the Draft Regulation are as follows:

  • The project authority (entity responsible for construction and management of the project) has to ensure compliance with the regulations namely (i) Topography and natural drainage, (ii) Adoption of water conservation methods, (iii) Management of sewage/waste water, (iv) Solid waste management, (v) Green cover, (v) Air and Noise pollution, (vi) Power supply and (vii) Issuance of occupancy or possession certificate.
  • The project authority is required to set up a Project Environment Management Cell with defined functions to ensure compliance with the aforesaid regulations.
  • Project proponent has to submit a self declaration undertaking compliance of environmental regulations along with project details and environment management plan on the designated website of Central Government

Conclusion:

The need of the hour is to get ahead of the curve and prevent the adverse impact of rapid construction and development on the environment. Environmental compliance will have to be made part of mandatory compliances to be followed by all stakeholders. The construction industry needs to adopt more sustainable construction materials and green construction technologies. In this behalf, the Government should prescribe a list of eco-friendly construction materials and green construction technologies and their use should be made compulsory. The Government should come up with more incentives for developers who are constructing green buildings and adopting eco- friendly practices. As the country progresses with urbanization and infrastructure development, the requirement of strong environmental law framework for the construction sector is essential. At the same time, such legal framework should be conducive for the construction sector.

Originally published by REALITY PLUS

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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