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The Delhi government has allowed property owners and developers to obtain a provisional No Objection Certificate (NOC) by paying only 25% of infrastructure charges upfront. The move, implemented through the Delhi Jal Board, aims to reduce high initial costs that had slowed construction and redevelopment projects. The remaining amount will be paid later at the time of final approval. The decision follows concerns over steep increases in charges in recent years and is expected to improve project timelines, ease cash flow pressure, and support construction activity across the city.
The Delhi government has introduced a relief measure allowing property owners and developers to obtain a provisional No Objection Certificate (NOC) by paying only 25% of the applicable infrastructure charges. The decision has been implemented through the Delhi Jal Board to simplify the approval process and reduce the upfront financial burden on applicants. Advertisement
Under the revised system, applicants can secure a provisional NOC at the stage of building plan approval with partial payment. The remaining 75% of the infrastructure charges will be payable later and adjusted at the time of final approval, especially when water and sewer connections are granted. This change allows projects to begin without waiting for full payment, which was earlier a major hurdle.
The move comes after developers and property owners raised concerns about the sharp increase in infrastructure charges in recent years. A change in the calculation method from occupancy-based to floor-area-based had significantly increased costs, in some cases by five to ten times. This had led to delays in construction activity and impacted redevelopment projects across several parts of the city.
Officials indicated that the earlier requirement of full upfront payment often affected cash flow and slowed down approvals, particularly for small developers and individual property owners. By reducing the initial payment requirement, the government is aiming to make the process more practical and improve compliance.
Properties up to 200 square metres will continue to remain exempt from infrastructure charges. For larger plots, the revised structure is expected to reduce the overall financial burden, with estimates suggesting a reduction of around 50% to 70% in certain cases depending on the project size and usage.
The decision is also expected to unlock a number of stalled projects that were waiting for approvals due to high costs. It may particularly benefit redevelopment projects in older colonies where compliance with infrastructure norms is required before construction can proceed.
This step is part of broader efforts to improve ease of doing business in Delhi's real estate sector by simplifying procedures and reducing delays in approvals. By easing financial pressure at the initial stage, the government aims to encourage faster execution of housing and construction projects.
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