Balancing Growth with Responsibility: How Environmental Compliance is Shaping the Future of Sustainable Real Estate in India
Real estate is a major force in shaping modern India, contributing over 7% to the GDP and projected to become a USD 1 trillion industry by 2030. From growing metro cities to smart townships, the sector is key to urban transformation and job creation. But with rapid development comes a crucial responsibility: to ensure that progress doesn’t harm the environment. That’s where environmental compliance steps in.
In simple terms, environmental compliance in real estate means following the rules and guidelines that protect our environment during the planning, construction, and operation of a project. These guidelines help reduce pollution, manage waste, save energy and water, protect natural ecosystems and ensure hazard free construction practices.
In India, these regulations are managed by national and state-level bodies like the Ministry of Environment, Forest and Climate Change (MoEFCC), State Pollution Control Boards (SPCBs), and various municipal authorities. Key among these is the Environmental Impact Assessment (EIA) Notification 2006, which mandates Environmental Clearance (EC) for construction projects above a certain size, typically those exceeding 20,000 square meters of built-up area. Obtaining this clearance requires a thorough assessment of the project’s potential impact on air, water, ground water, soil, noise, ecology & biodiversity, and surrounding communities, often supported by public hearings.
Before starting construction, developers also need approval under air and water pollution laws. These permissions, called Consent to Establish (CTE) and later, Consent to Operate (CTO), make sure the project meets the environmental standards and won’t negatively affect air or water quality in the area.
Another important area of compliance is waste management. Construction activities create a lot of debris, and developers must have a plan to sort, store, and reuse and channelize the recyclables and safely dispose the non-recyclable waste to authorized facilities. After the project is completed and people start living or working in the space, systems must be in place to manage everyday waste as well.
Saving water and energy is also part of environmental compliance. Many cities now require buildings to include features like rainwater harvesting, wastewater treatment plants, and energy-efficient systems. These are often part of the building approval process and are encouraged through building bye-laws and urban development policies.
To promote cleaner cities and reduce emissions, states are also encouraging the use of solar rooftops, natural ventilation, and eco-friendly materials in construction. While not always mandatory, getting a green building certification (like IGBC, GRIHA, or LEED) can give projects a strong reputation for sustainability and sometimes even offer benefits like faster approvals or tax incentives.
During construction, it’s important that the work itself doesn’t cause environmental harm. Measures need to be taken to mitigate dust, control noise, and use machinery that doesn’t pollute excessively, adequate personal protective gears and sanitation facility is provided for construction labours. These practices are often part of what’s known as a Construction Environmental Management Plan (CEMP), a kind of checklist to ensure developers are building responsibly, which is further reviewed during compliance inspections.
Some projects may also need special permissions if they are located near forests, wetlands, or other environmentally sensitive zones. In these cases, developers must work closely with forest and environmental authorities to ensure no damage is done to protected areas.
It might sound like a lot of paperwork, but environmental compliance isn’t just about meeting legal requirements. It’s about taking responsibility. Projects that follow these standards from the very beginning tend to move more smoothly, earn community trust, and save money in the long run by avoiding delays or penalties. More importantly, they reflect a growing awareness among developers and buyers alike that our cities must grow in a way that respects and protects the environment.
AUTHOR
Ms. Minal Srinivasan Managing Director of Kesari Infrabuild Private Limited