AHMEDABAD: Real estate project approvals in Gujarat have encountered delays following the non-functionality of the State-level Expert Appraisal Committee (SEAC) after its tenure concluded in June, according to industry representatives and government sources. Although a standing committee has been instituted via government notification, the industry is advocating for a regular committee.
Sources indicated that environmental assessments for various real estate and industrial projects are stalled.
The Confederation of Real Estate Developers’ Associations of India (CREDAI), Gujarat, has raised this concern with the state government.
Tejas Joshi, president of CREDAI, Gujarat, emphasized, “The SEAC plays a crucial role in the state’s environmental approval process for projects classified under Category 8(a).” These projects encompass buildings and constructions over 20,000 square meters and area developments extending beyond 50 hectares.
“Without the committee’s review, these proposals cannot advance to the next clearance stages, further complicating project timelines,” Joshi noted. “While a standing committee has been mentioned, a regular committee is essential as numerous project approvals remain unaddressed.”
Industry insiders report a substantial backlog in real estate applications due to the absence of a reviewing committee.
Ashesh Shah, head of the environmental committee at CREDAI, Gujarat, mentioned, “A recent notification from the Centre indicated the establishment of a standing committee to prevent a backlog of cases before the central government.” Shah further stated, “New cases are currently not being accepted into the portal.”
According to industry representatives, in light of the non-functional state mechanism, developers are compelled to seek some permissions through the central government, which could prolong approval timelines.
The tenure of the previous SEAC, consisting of seven members, lapsed on June 12. A CREDAI, Gujarat, office-bearer commented, “Construction cannot commence for projects exceeding 20,000 square meters of built-up area without the appraisal.”
Furthermore, the office-bearer added, “Townships and large estates are also facing setbacks. We intend to address this issue with the state government very soon.”
Sources from the Gujarat government have stated that the Union Ministry of Environment and Forests significantly influences the formation of SEAC.
“There have been recent amendments regarding SEAC,” a government source elaborated. “In the past, when committees were nearing the end of their tenure, a rush of applications would typically redirect to the central government.”
The source continued, “Currently, amendments allow states to maintain a standby SEAC and EIA Authority, ensuring functionality when the regular committee’s term ends.”
Under the existing guidelines, the evaluation, scoping, and appraisal for qualified real estate projects can extend up to 90 days, according to sources. However, industry representatives noted that Gujarat’s SEAC historically expedited the approval process, often within 45 days, making the current delay noticeably impactful.
Chemical industry representatives expressed that even smaller projects, typically receiving state-level appraisal, are now stalled.
Government sources mentioned that the formation of a new SEAC is nearing completion, with an announcement anticipated soon.
