Environmental law relaxation causes Indian construction stock surge
India&rsquo;s environmental ministry has overruled a previous judgement which forbade any construction within a 10 km radius of Noida&rsquo;s Okhla bird sanctuary, it has been reported. As a result, construction companies will be able to apply obtain the paperwork needed to develop infrastructure in the surrounding area, including DLF&rsquo;s Mall of Noida; stocks in the firm have increased by 1% and similar construction companies such as Jaiprakash Associates have seen more dramatic stock surges of up to 15%.
Shares of Jaypee Infratech and DLF today rose up to 8 per cent following the government’s move to reduce the area of the eco-sensitive zone around the Okhla Bird Sanctuary in New Delhi, bringing a huge potential relief to home buyers in and around the area.

Jaypee Infratech surged 8 per cent to Rs 15.90, and DLF gained 3 per cent to Rs 131.90 on the BSE.

As many as 55,000 home buyers will benefit immediately from the government’s move to reduce the area of the eco-sensitive zone (ESZ) around the Okhla Bird Sanctuary, leading real estate developers had said yesterday.

The Union Environment Ministry’s notification last year, which was cleared yesterday, said that the ESZ will cover an area up to 100 metres from the eastern, western and southern boundary and up to 1.27 kilometres from the northern boundary of the Okhla Bird Sanctuary.

The ministry will come out with a final notification within a week, thus bringing in a huge potential relief to home buyers in and around the area.

Once the notification is issued, the government will allow home buyers outside the ESZ to get occupancy certificates of their flats, which had been pending for quite sometime as the NGT had passed an order barring development of any infrastructure within 10-km radius from the sanctuary’s boundary.

Housing projects of various developers, including Jaypee Green, DLF, ATS, 3C Developers and Supertech, were affected due to the National Green Tribunal (NGT) order, which restrained the authorities from issuing completion certificate to the projects which are located within 10 km radius of the Okhla Bird Sanctuary or within the eco-sensitive zone

SHARE Copy link

Email

Facebook

Twitter

Telegram

LinkedIn

WhatsApp

Reddit