Real estate developers should be working with the municipal authorities to build the necessary infrastructure for commercial and residential projects, said D Thara, Secretary, Department of Capital Development, MoHUA, while speaking at a CII real estate conference in New Delhi. They should not only focus on the impact of their projects, but also the additional requirements that such projects would bring in such as water, sewage, power and civic infrastructure, she added. She also made a note on having greater attention towards water harvesting, water recycling and sewage treatment as more cities continue to expand.
Developers and civic bodies need to work more closely
Thara said real estate development has a direct interaction with the wider urban environment and that this impact needs to be considered while projects are planned and approved.
According to her, there is currently limited dialogue between municipal officials responsible for providing civic services and real estate developers. She called for a new approach to bring public and private sectors together in shaping infrastructure of growing urban areas.
The emphasis is particularly useful in large residential and commercial developments where the infrastructure needed to support a project can go beyond its site. Similar concerns have emerged in Bengaluru, where the expansion of development capacity has also raised questions around infrastructure capacity and urban strain. Roads, drainage, water supply and sewage networks are examples of items that may need to accommodate additional demand as new developments come up.
Thara said developers should therefore work with municipalities to understand these requirements rather than see infrastructure as an issue limited to the project site.
Projects need to account for water, sewage and power needs
The ministry official also urged developers to consider the resources consumed by projects and the pressure they can place on existing city systems.
Among the areas highlighted were rainwater harvesting, water recycling and sewage treatment. New construction can change how water is absorbed and drained from a site while additional homes and commercial spaces can put up demand for municipal water and sewage services.
Thara said the impact of development should be assessed in broader terms, including the water displaced by construction, sewage generated, energy consumed and infrastructure required to support the project.
She also argued that the sector should consider a broader definition of value, beyond the price or built-up area of a property. Infrastructure requirements, resource consumption and environmental impact should also form part of how development is evaluated.
Developers seek faster project approvals
While the ministry called for greater responsibility and coordination from developers, industry representatives also raised the need for more efficient approval systems.
Harshvardhan Bansal, Chairman of CII Delhi State and Co-founder of Unity Group, said approvals for development projects need to become faster and more integrated. He called for a genuine single-window system under which applications can move simultaneously across different authorities instead of developers approaching departments separately.
For developers, such coordination is particularly important as projects often require clearances and approvals from multiple agencies. A more integrated process could help reduce the fragmentation involved in taking projects from planning to execution.
Real estate planning moves beyond the project site
As cities expand and projects become larger, the need for coordination between developers and civic bodies is likely to become more important.
Sriram Khattar, Co-Chairman of CII's National Committee on Real Estate and Housing and Vice Chairman and MD of DLF Rental Business, said real estate is moving beyond the construction of buildings towards creating communities and environments where people live, work and access services.
For developers, closer coordination with civic authorities could therefore become increasingly important as projects become larger and urban infrastructure comes under greater pressure. The remarks point to a model where project infrastructure, municipal capacity and the impact on surrounding areas are considered together.
