Circular economy policy will be part of the next Karnataka budget

Bengaluru: The Karnataka Government's circular economy policy, which will be India's first, is going to be launched in the upcoming budget, government sources told DH.

Under the policy, 20 per cent of all construction material will be mandated to be sustainable, announced Karnataka's Information Technology and Biotechnology Minister Priyank Kharge on Wednesday at Brigade REAP's property technology (proptech) summit.

While this will be a benchmark for government constructions, tax breaks may be offered to incentivise it for the private players. For one, while benefits are already on offer for commercial realty with solar panels, incentives such as concessional power supply are being explored for residential properties, the source said.

Beyond realty, the focus will also be on constructions for infrastructure, and roads. With the Rural Development and Panchayat Raj Department (RDPR), the government has already begun using recycled materials and hard plastics for roads to determine whether it can be a viable replacement material. Likewise, the explorations will extend to roads and camera traps in the forest, working with the Forest Department.

Beyond construction, the government is engaging with its other departments such as fisheries, tourism and inland water transport to track the quantum of plastic being dumped in water bodies and find ways to remove them.

Other initiative include RDPR working to to provide refurbished laptops to rural libraries and directives to use only glass bottles in government events.

Realty boom

Speaking at the event, Kharge also observed, “India’s real estate sector contributes around 7.3 per cent of the GDP and it is set to grow to $1 trillion in revenue by 2030. The need of the hour is grade A commercial buildings. The government is committed to working more closely with the proptech sector.”

Amit Kumar, Senior Executive Vice President, Kotak Bank said, “From a banking perspective, we need to leverage India’s tech stack for simplification of know your customer (KYC) and documentation using Aadhar and Digi Locker integrations for faster validation of buyer credentials, seamless access to financial data for credit assessment and design enabled smart contract for lease agreements and project tenders.”

On the boom in sale of luxury residences, Jitu Virwani, Chairman and MD Embassy Group, pointed out that it is the Rs 1.5-3 crore segment that is doing well currently and not the Rs 5 crore plus segment.