20
10-Oct-2019
10-Oct-2019 10-Oct-2019
CREDAI Bengal Daily News Update | 10.10.19
SBI reduces MCLR by 10 basis points
This is the sixth time that the country's largest lender has cut its MCLR or minimum
lending rate in the current financial year. The rate reduction is not applicable to the repo-
linked loans.
State Bank of India (SBI) on Wednesday announced reduction in its marginal cost of fund based
lending (MCLR) rate by 10 basis points across all tenors, effective October 10.
This is the sixth time that the country's largest lender has cut its MCLR or minimum lending
rate in the current financial year. The rate reduction is not applicable to the repo-linked loans.
"In view of the festival season and extending the benefits to customers across all segments, we
have reduced our MCLR by 10 bps across all tenors," the bank said in a statement.
With this reduction, the one year MCLR, to which all the lending rates are linked to, is set at
8.05 per cent as against 8.15 per cent earlier.
The cut in MCLR follows a 25 bps reduction in repo rate by the RBI last week.
_______________________________________________________________
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-reduces-mclr-by-10-basis-points/71500390
We have a plan-B: Gagan Banga, MD, Indiabulls Housing
In a recent interview, BK Manjunath, chairman of LVB had also mentioned that they
have a plan-B if the proposed merger falls apart.
Gagan Banga, vice chairman and managing director of Indiabulls Housing Finance (IBH) in
conversation with ETRealty on yesterday morning had said that they have a plan-B in case their
merger with Lakshmi Vilas Bank (LVB) is not approved.
LBV in the late evening yesterday informed the BSE that the Reserve Bank of India (RBI) has
rejected the voluntary amalgamation of IBH and its 100 per cent subsidiary lndiabulls
Commercial Credit (ICCL) with them.
Banga however declined to give further details on the plan-B.
Both the companies had proposed amalgamation of IBH and ICCL with LVB under Sections
230 to 232 and other applicable provisions of the Companies Act, 2013, as amended,
Companies (Compromises, arrangements and Amalgamations) Rules, 2016.
Interestingly, in a recent interview, BK Manjunath, chairman of LVB had also mentioned that
they have a plan-B if the proposed merger falls apart. According to their plan-B, the bank plans
to raise capital via allotment of shares.
Previously in an interview, Banga had said that they will not renegotiate the share swap ratio for
their proposed merger since the terms of the merger have been locked up for 18 months.
According to the swap ratio, LVB shareholders were to receive 14 shares of Indiabulls Housing
for 100 shares in LVB.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date October 10, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/rbi-rejects-indiabulls-housing-and-lakshmi-vilas-bank-merger/71508195
Housing ministry to hire private security to protect its properties
from encroachment
The security agency will have to get their guards verified from the Delhi Police before
their deployment at the vacant government bungalows, land and flats, they said.
The Union Housing and Urban Affairs ministry will hire a private security agency to protect
vacant government land, bungalows and flats from encroachment, sources said. The Central
Public Works Department (CPWD), the prime construction agency of the central government,
has been given the task of deploying private security guards, preferably ex-serviceman in Delhi,
sources in the ministry said.
The security agency will have to get their guards verified from the Delhi Police before their
deployment at the vacant government bungalows, land and flats, they said.
The agency, which will be hired for a year, will deploy two guards on a vacant property round
the clock.
In Delhi, there are thousands of such vacant properties which are often prone to encroachment
in the absence of authorised occupants.
"The decision has been taken to protect such properties from being encroached.
"If there is encroachment despite deployment of guards, the agency will have to pay Rs 1,000
per day till the land, bungalows or flats remains under the unauthorised occupation," sources
told.
According to government estimation, Rs 93 lakh will be required to hire the security agency.
"The guards to be deployed at these properties should have an experience of at least three
years," sources said.
They said once the agency is hired, it will have to give details of daily deployment of its
security guards. The agency will also be held responsible for behaviour and conduct of security
guards, they added.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/housing-ministry-to-hire-private-security-to-protect-its-properties-from-encroachment/71501833
Decide to link Aadhar card with property transactions: Punjab &
Haryana HC
The order by a division bench led by Justice Rajiv Sharma and Harinder Singh Sidhu
came on a public interest litigation (PIL) that demands identification of properties made
in another person's name.
The Punjab and Haryana High Court has directed the Union Government and the two state
governments to take a decision on linking the Aadhar card with all property transactions by
October 31.
The order by a division bench led by Justice Rajiv Sharma and Harinder Singh Sidhu came on a
public interest litigation (PIL) that demands identification of properties made in another
person's name.
While disposing off the petition, the bench said that the petitioner has already made four
representations in this regard to the Chief Ministers of Punjab and Haryana as well as the
Administrator of Chandigarh and the Union of India on July 22.
"Consequently, the Chief Secretary of Punjab and Haryana and the Advisor to the Chandigarh
Administration as well as Secretary of the Ministry of Home Affairs are directed to decide the
representations by passing a speaking or detailed order within one month," said the judges on
October 1.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/decide-to-link-aadhar-card-with-property-transactions-punjab-haryana-hc/71503486
Dehradun civic body to bring over 100 slum settlements under
house tax network
Incidentally, the decision to impose house tax on the slum settlements was also raised in
one of the board meetings of DMC.
Dehradun Municipal Corporation (DMC) is planning to bring 110 slum settlements across the
capital city under the existing house tax system.
The decision was taken by mayor Sunil Uniyal Gama on the eve of Dusshera. The mayor said
the decision will be implemented after Diwali this year.
“Municipal Corporation is going to organise various camps in the slum settlements to
implement the decision”, Gama said.
It is worth mentioning here that the city’s civic body has been thinking about imposing house
tax on illegal slum settlements, mainly situated on the banks of local rivers, for a long time.
Incidentally, the decision to impose house tax on the slum settlements was also raised in one of
the board meetings of DMC. However, the implementation was delayed due to the Lok Sabha
polls.
As per an estimate, there are around 40,000 houses in these 110 settlements and the people
living in these shanties have also been demanding that house tax should be charged from them
too.
“Taking cognisance of their demand, we have finally taken a decision to include the identified
slum settlements in the house tax bracket. The move will help in increasing the revenue of
municipal corporation”, said Gama.
The mayor further added that the DMC is already giving many facilities to all slum dwellers. So
the civic body has "full right to claim house tax from the residents of these slums."
However, slums which are located right on the banks of the rivers will still not be covered under
the house tax, the mayor said.
TOI had earlier reported that the DMC had been able to collect only about 10% of its total
house tax revenue target in the first five months of the ongoing fiscal year. For this fiscal, the
DMC has set an ambitious target of collecting Rs 75 crore as house tax, which is three times
more than the last fiscal’s target.
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/dehradun-civic-body-to-bring-over-100-slum-settlements-under-house-tax-network/71503723
________________________________________________________________
Vadodara civic body to construct 190 houses under PMAY
The civic body will be constructing the houses under the Pradhan Mantri Awas Yojana
(PMAY) for which the Central Sanctioning cum Monitoring Committee (CSMC) has
already given approvals.
The Vadodara Municipal Corporation (VMC) is set to construct 190 more houses for the
economic weaker sections (EWS) of the society. The houses will come up as part of two
different housing schemes in the Subhanpura along with 74 shops.
The civic body will be constructing the houses under the Pradhan Mantri Awas Yojana
(PMAY) for which the Central Sanctioning cum Monitoring Committee (CSMC) has already
given approvals. The houses and shops will be part of two different schemes.
A proposal has been prepared for 102 houses and 40 shops at one location in the area and 88
houses and 34 shops at a different location in Subhanpura. The houses will have two rooms and
a kitchen. Each dwelling unit will have an area of 35 square foot.
The projects will come up at a cost of Rs 15.09 crore. Proposals for both the schemes have been
put up before the standing committee that is likely to take a decision regarding them later this
week.
_______________________________________________________________
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/vadodara-civic-body-to-construct-190-houses-under-pmay/71497135
NHB exposure in DHFL at Rs 2,435 crore
National Housing Bank's gross NPA ratio was flat at 0.01 per cent in FY19 as compared to
the previous fiscal.
National Housing Bank (NHB), the principal agency that promotes housing finance institutions
in India, has an exposure of Rs 24.35 billion in crisis-hit DHFL as on March 2019, a rating
agency said.
"NHB's exposure in Dewan Housing Finance Ltd (DHFL) and Punjab & Maharashtra
Cooperative Bank (PMC) stood at Rs 24.35 billion and Rs 1.75 billion, respectively, at end-
March 2019... both of which were standard accounts as on end-June," India Ratings said in a
note on Wednesday.
The bank's asset quality was significantly robust despite the concentration of HFCs and
commercial banks in its loan portfolio, it said.
NHB made 15-per cent provisoning in the 2018-19 fiscal as a prudent measure, though DHFL
was a standard account as on June, the note said.
There was a further recovery of Rs 4.2 million during FY19 and no fresh slippages, the rating
agency said.
National Housing Bank's gross NPA ratio was flat at 0.01 per cent in FY19 as compared to the
previous fiscal.
It also increased provisioning on standard assets to Rs 4,044 million in the last fiscal (FY18 was
Rs 269 million), which lowered the return on average total assets to 1.06 per cent.
________________________________________________________________
Newspaper/Online ET Realty (online)
Date October 10, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/nhb-exposure-in-dhfl-at-rs-2435-crore/71513263
Coimbatore: Work on houses under Indira Awaas Yojana yet to be
completed
A Chitra, a resident, said she was overjoyed at the very thought of shifting to a concrete
house from her dilapidated hut and that the excitement had faded over the years.
The residents of Badrakaliamman Colony in Anaimalai taluk were an excited lot when they
were allotted concrete houses under the Indira Awaas Yojana in two phases in 2015 and 2016.
Years later, they still live in their huts, as construction of their new houses are yet to be
completed.
A Chitra, a resident, said she was overjoyed at the very thought of shifting to a concrete house
from her dilapidated hut and that the excitement had faded over the years.
Sanctioned in 2015, the contract to construct the house was given to a contractor, who was
recommended by Thatthur panchayat. Almost four years have lapsed, but the contractor has
constructed only a single-storeyed structure without any compartment and toilet.
“It took them four years to construct a single structure and fix doors and a window. We have
been asking them to construct at least a wall across the house to separate kitchen from the living
room. We don’t know how long it would take them to do that,” Chitra said.
She said she had quit her job, which earned her nearly Rs 300 a day, to work along with the
contractor to build the house. “Wage for working at the construction site is credited under the
Mahatma Gandhi National Rural Employment Guarantee Act and the mason takes it directly,”
Chitra said.
To speed up the work, she said, they had hired one or two labourers at Rs 500 each a day. “The
mason won’t turn up for work every day. So, the work is delayed.”
The hut she and her family live in is in a dilapidated condition. During the rain, water leaks
through the roof. Rainwater also enters the hut through entrance, as there is no place for it to
drain. The story isn’t different for other residents in the area. The residents continue to defecate
in open, as they don’t have toilets.
A source said a total of 40 houses were sanctioned in the village under the Indira Awaas
Yojana. “While 17 houses were sanctioned in 2015, the remaining were allotted in 2016.”
Like Chitra, others are also waiting for the new houses, the construction of which is progressing
at a snail’s pace.
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/coimbatore-work-on-houses-under-indira-awaas-yojana-yet-to-be-completed/71497095
After witnessing the plight of Chitra and her neighbours, a couple of residents had hired their
own masons. “The masons, who are recommended by the panchayat, are not regular at work. In
most cases, they leave before completing the entire work. So, we hired our own mason and
designed the house. We commenced the work a year ago and have already constructed two
rooms,” said M Sumathi, 42, another resident.
Thatthur panchayat officials were, however, not available for a comment.
The Indira Awaas Yojana, now renamed as Pradhan Mantri Gramin Awaas Yojana, is a social
welfare flagship programme to provide financial assistance to construct houses to below
poverty line people in rural parts of the country. Under the programme, the beneficiaries are
given a sum of Rs 1.70 lakh each in several instalments.
________________________________________________________________
Cement factories to increase use of waste plastic as fuel
Currently, only 46 cement plants out of 238 factories across the country use waste plastic
as fuel.
The urban affairs ministry is likely to propose increasing the limit for using plastic waste as
a fuel in cement factories from the current 10% to 25%. Waste plastic, particularly polythenes,
has been one of the main reasons choking urban areas.
Currently, only 46 cement plants out of 238 factories across the country use waste plastic as
fuel. According to official estimate, about 26,000 tonnes of plastic waste is generated across the
country daily and only 60% of it is recyclable.
“The association of cement manufacturers has assured us that they will take necessary steps to
ensure that all the cement plants use waste plastic as fuel. That will help us in a big way to get
rid of the garbage that can’t be processed. Single-use plastics can be disposed in cement kilns
and there will be no environmental issues as it uses high temperature where hazardous gases get
absorbed,” said urban affairs secretary Durga Shankar Mishra.
Mishra was speaking to media persons barely hours before a symbolic demonstration of a
Ravana made of waste plastic getting dismantled mechanically rather than being burnt at
Ramlila Maidan in the capital on Tuesday evening. Such demonstrations were held in other
cities, including Noida, Raipur and Ahmedabad.
“This is just a demonstration of how everyone is working hard to get rid of single use plastic.
Waste plastic is being used in a big way for building roads,” Mishra said.
The Cement Manufactures’ Association said, “This initiative also highlights the role that the
Cement Industry can play in, helping overcome this menace in its plants in an environment-
friendly manner.”
______________________________________________________________
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/cement-factories-to-increase-use-of-waste-plastic-as-fuel/71500191
Virtuous Retail buys nearly 20-acre Raymond land parcel in Thane
for over Rs 710 crore
The company is planning to build a 3.7 million sq ft mixed-use city center project
anchored by a 2.4 million sq ft VR retail flagship development.
In one of the rare land deals transacted on outright basis so far this year, private equity
major Xander Group’s retail arm Virtuous Retail South Asia (VRSA) has acquired a prime
nearly 20-acre land parcel in Thane near Mumbai from textile major Raymond for $100 million
or over Rs 710 crore.
Virtuous Retail South Asia is looking to invest additional $240 million or over Rs 1,700 crore to
develop the site, taking its total investment to over Rs 2,400 crore. The company is planning to
build a 3.7 million sq ft mixed-use city center project anchored by a 2.4 million sq ft VR retail
flagship development.
The deal assumes significance as most of the land deals, over the last few years, have been
structured as joint development agreements or joint ventures as against an outright sale.
In November 2018, ET was first to report that Singapore-based Xander Group was among the
global institutional investors and property developers keen on the tract of land that is part of the
bigger, 125-acre contiguous land parcel at Thane’s Cadbury Junction.
“Prime land parcels of this size seldomly trade, especially in major metropolitan markets like
Mumbai. We have been waiting patiently for the ideal opportunity to expand our award-
winning portfolio into the Mumbai region,” said Sid Yog, Founder and Chairman of the Board,
VRSA.
In line with VRSA’s India expansion strategy through both ground-up development and
inorganic acquisitions, this investment bolsters the company’s development pipeline. This
includes retail centers currently under construction in South Bengaluru and Delhi NCR, opening
in May 2020 and August 2022 respectively.
“We see strong demand for a world-class project that reflects changing consumer preferences,
new age lifestyles and communities. VRSA looks forward to working with our retail partners to
introduce a fresh experiential destination to the region, bringing in the latest trends in retail and
technology,” Rohit George, Executive Managing Director, VRSA.
Along with the existing VR flagship centers in Chennai, Punjab, Bengaluru and Surat, VRSA’s
pan-India portfolio will stand at around 11 million sq ft. The company looking to complete this
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/virtuous-retail-buys-nearly-20-acre-raymond-land-parcel-in-thane-for-over-rs-710-crore/71500560
project in around 5 years. With this entry into Mumbai market, VRSA has become the only
retail center developer-owner-operator to have a presence across the top four retail markets in
India.
Apart from the proposed 2.4 million sq ft retail mall, the company is open to developing either
commercial, residential or even combination of both as additional 1 million sq ft component on
this plot.
The proposed 2.4-million-sq-ft VR flagship retail mall will offer full spectrum of retail, dining,
lifestyle, and entertainment offerings. Upon completion, VRSA expects the center to attract
over 20 million customers visits annually, and generate over 4,000 permanent, direct new jobs,
in addition to over 7,000 construction jobs over the next four years during the development
phase.
The piece of land owned by JK Investo Trade India, an arm of Raymond, and was proposed to
be sold on an as-is-where-is basis and as-is-what-is-basis, meaning the new owner is
responsible for any permissions.
In October 2010, Raymond reached an out-of-court settlement with its labour union
representing nearly 2,000 employees at the Thane unit. The labour union received compensation
of Rs 313 crore in lieu of giving its consent for real estate development on the land that used to
house Raymond’s textile unit until then.
The settlement provided clearances from the government bodies to Raymond for a real estate
project on the land that housed its flagship textile factory since 1925.
In 2012, Raymond had initiated talks with a Thane developer to sell a 9.4-acre plot. This was
the first plot out of the large land parcel to go on the block. However, the deal fell through as
the buyer could not raise necessary funds.
________________________________________________________________
Mumbai: Pydhonie residents given eight months to vacate building
The Bombay High Court last Friday granted a stay on the building’s demolition for eight
months to allow residents time to vacate their houses and make alternative arrangements.
Over a hundred families facing the specter of being rendered homeless after their building
in Pydhonie was declared illegal and its demolition ordered have been given eight months to
vacate their houses.
The Bombay High Court last Friday granted a stay on the building’s demolition for eight
months to allow residents time to vacate their houses and make alternative arrangements.
A division bench of Chief Justice Pradeep Nandrajog and Bharati Dangre, however, said water
and electricity supply to the building will be restored only after the residents file affidavits
undertaking that they would vacate the premises peacefully within the stipulated period and also
not sell their properties in the meantime.
The BMC had begun phased demolition of the ten-storey structure on September 23, two days
after eviction notices were served to the residents. Soon after, a few of the residents approached
the High Court asking for the demolition to be deferred as moving out during monsoons
presented its own set of challenges.
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/mumbai-pydhonie-residents-given-eight-months-to-vacate-building/71501612
The illegal construction was first brought to the High Court’s attention in September 2017 when
a PIL was filed pointing out that a building was being raised on a plot in Pydhonie where a
single-storeyed warehouse stood.
While the court asked the BMC to file a reply, the civic body did not respond to the court order
till August, 2018, by which time the construction of the building had been completed and
people had moved in.
In a parallel development, the Brihanmumbai Municipal Corporation had issued eviction
notices, unconnected to the PIL in the high court, to the residents of Gulistan.
The residents challenged the notices in a lower court and secured a stay.
When the Brihanmumbai Municipal Corporation cited this stay order in the HC, the court asked
it to get the stay vacated. The stay was vacated in September this year and the demolition
began.’’
In last Friday’s order, the HC bench observed that merely proving that people have begun
inhabiting an illegal building does not protect it from being demolished. It observed that in far
too many cases lower courts grant a stay on demolition without it being proved even prima facie
that the structure is legal.
________________________________________________________________
Five architecture firms submit bids for Central Vista
redevelopment
Sources said the five firms will now make a detailed presentation before a jury for short-
listing. “We will select the firm before Diwali so that it can start work,” Union housing
and urban affairs secretary Durga Shankar Mishra said.
Only five architecture and urban design firms — three from Delhi and one each
from Mumbai and Ahmedabad — have qualified to submit proposals for the ambitious Central
Vista redevelopment plan, which will include renovation of Parliament, construction of a new
central secretariat and revamping of Rajpath.
Sources said the five firms will now make a detailed presentation before a jury for short-listing.
“We will select the firm before Diwali so that it can start work,” Union housing and urban
affairs secretary Durga Shankar Mishra said.
The five firms that have qualified are Delhi-based CP Kukreja and Associates, Sikka Associates
Architects and Arcop Associates, Mumbai-based Hafiz Contractor and Ahmedabad-based HCP
Design, Planning and Management. Officials said only firms that have office in India could
participate in the bidding process and they could take the help of foreign firms which have
required expertise.
According to information available in the public domain, CP Kukreja has several important
projects under its belt, including designing of JNU campus, redevelopment of Pragati Maidan
and planning of Shiv Nadar University.
HCP Design, promoted by architect Bimal Patel, has designed several projects including Bhuj
Development Plan, Mumbai Port Complex and and Sabarmati River Front development where
Prime Minister Narendra Modi recently held a mammoth event to celebrate Mahatma Gandhi’s
150th birth anniversary.
Similarly, Hafiz Contractor has, to its credit, projects including designing of Patna World City,
redevelopment of Dharavi and Kamathipura in Mumbai. Arcop has also designed some of the
best planned development projects including Garden Estate in Gurgaon, Jaypee Greens and
Wish Town in Noida and T-3 at IGI airport.
“Considering the nature of the project, technical and financial weightage of the firms for the
project will be 80:20,” said a ministry official.
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/five-architecture-firms-submit-bids-for-central-vista-redevelopment/71497046
Builders in England report weakest demand since 2013
The Federation of Master Builders (FMB), a trade body, said its members considered
land, finance and skilled workers easier to find than a year ago, but that demand from
home buyers had slowed further to its lowest since 2013.
Demand for newly built houses in England has fallen to a six-year low as home buyers await
more certainty over Brexit before going ahead with a major purchase, according to an annual
survey of small construction companies.
The Federation of Master Builders (FMB), a trade body, said its members considered land,
finance and skilled workers easier to find than a year ago, but that demand from home buyers
had slowed further to its lowest since 2013.
"Small house builders are starting to see the effects of Brexit uncertainty taking its toll on
consumer confidence. Many prospective homeowners are clearly holding off buying until there
is more political and economic certainty," FMB chief executive Brian Berry said.
Britain is due to leave the European Union on Oct. 31 and Prime Minister Boris Johnson has
said he will do so without a transition deal if necessary, despite a parliamentary vote ordering
him to delay Brexit if he cannot reach an agreement.
Other business surveys have also shown a downturn in recent months. September's IHS Markit
construction purchasing managers' index (PMI), which focuses on larger construction
companies, fell to its second-lowest reading since the financial crisis.
Small construction companies, which typically build fewer than 10 homes a year, account for
about a quarter of house building in Britain, according to the FMB, with most construction
dominated by a handful of larger firms.
A shortage of small plots of land with development permission remained the biggest barrier
facing firms, followed by financing conditions.
The proportion of builders reporting constraints due to a lack of skilled workers fell especially
sharply, dropping to 26% from 44% - in contrast to widespread reports of skill shortages in the
sector - though firms expected worse shortages next year.
The survey was based on responses from 154 small construction companies, all operating in
England.
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/builders-in-england-report-weakest-demand-since-2013/71504607
Construction industry could cut emissions 44% by 2050: Report
The report, 'Building and Infrastructure Consumption Emissions', published by C40
Cities, Arup and University of Leeds urges action in six key areas to reduce the climate
impact of construction in cities.
A research on Tuesday said changes to the construction industry could cut the emissions
generated from buildings and infrastructure 44 per cent by 2050.
The report, 'Building and Infrastructure Consumption Emissions', published by C40 Cities,
Arup and University of Leeds urges action in six key areas to reduce the climate impact of
construction in cities.
They are implementing efficiency in material design, enhancing existing building utilization,
switching high-emission materials to sustainable timber where appropriate, using lower-carbon
cement, reusing building materials and components and using low, or zero-emission
construction machinery.
As well as reducing greenhouse gas emissions, the research reveals the additional economic,
social and health benefits that 'clean' construction could generate.
The interventions identified in the research would reduce air and noise pollution, providing
health benefits for citizens and the environment. They would also spark change within the
growing construction economy, providing opportunities for new jobs and skills.
Cities are starting to take action on construction to address the climate impact of their
consumption.
Copenhagen, Oslo and Stockholm will now reduce the greenhouse gas emissions and air
pollution from construction sites, in the effort to solve the climate crisis and improve public
health.
Frank Jensen, Lord Mayor of Copenhagen and Raymond Johansen, Governing Mayor of Oslo,
on Tuesday announced their ambition to reduce the use of fossil fuels in construction sites and
civil works.
The mayors pledged to enact regulations and/or planning policy to ensure they purchase
biofuels and emission-free machinery for the city's own use.
Demand fossil-and emission-free solutions in public procurement and city supported projects.
In Oslo, all city-owned machinery and municipally or owned construction sites will operate
Newspaper/Online ET Realty (online)
Date October 09, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/construction-industry-could-cut-emissions-44-by-2050-report/71503863
with zero emissions by 2025.
Copenhagen's CPH2025 Climate Plan, roadmap 2017-2020, includes a goal for the city to use
fossil-free fuels in its own non-road mobile machinery.
In the budget for 2020 Copenhagen have decided to promote a transformation from fossil fuels
to sustainable biofuels, and to fossil-free non-road mobile machinery in its own machines and
strengthen efforts that municipally commissioned construction sites and civil work will be
fossil-free.
"Copenhagen will work to purchase fossil-free fuel for its own machinery and heavy vehicles,
pilot projects with tender requirements for fossils-or emission-free construction machinery in
construction projects," said Frank Jensen, Lord Mayor of Copenhagen, and C40 Vice Chair.
"We will also collaborate with market players to make them use fossil-free fuels.
"In Oslo, construction sites generate as much as seven percent of total emissions, equivalent to
an additional 30,000 petrol cars on the road," said Raymond Johansen, Governing Mayor of
Oslo.
Both cities have also pledged to reduce the indirect emissions generated from building works,
through the prioritisation of retrofits and refurbishment of their existing stock, de-incentivizing
demolitions, and encouraging the use of low-carbon and reusable materials.
"The world's cities are growing fast, with an area the size of Milan being built every week. It
may be a boom time for builders but the construction industry is a major contributor to the
climate crisis," said Mark Watts, Executive Director of C40 Cities.
Mayors of more than 70 cities will meet in Copenhagen for the C40 World Mayors Summit
2019 from October 9-12 to develop solutions to the global climate crisis.
UN Secretary-General Antonio Guterres will take part in the summit to show his support for the
tremendous efforts undertaken by cities, more than 100 of which committed to net zero carbon
emissions by 2050.
He will join more than 70 mayors and city leaders from the largest and most influential around
the world, along with youth activists, leaders from business and civil society at the summit on
October 11, where they will commit to more ambitious climate action and showcase the
innovative solutions that are creating healthier, more livable and resilient communities.
________________________________________________________________
