Karnataka is working on India's first-ever circular economy policy: Priyank Kharge

Bengaluru: Karnataka is working on India’s first-ever circular economic policy, which will mandate that 20 percent of all construction materials be sustainable, State Minister Priyank Kharge said on Wednesday.

Circular economy aims to circumvent waste through processes like maintenance, reuse, refurbish, re-manufacture, recycle and composting. This is being increasingly adopted by governments around the world to tackle specifically climate change related challenges.

As part of this policy, 20 per cent of all construction materials will be required to be sustainable, he added. Kharge was speaking at Propagate 2024, the annual flagship event of Brigade REAP, a real estate accelerator program, in Bengaluru.

The summit, which focused on proptech, featured industry experts discussing the latest tech trends, innovations, and the key factors required to scale the next unicorn in proptech and urban tech.

According to Kharge, thanks to various timely policies implemented by the Karnataka government, Bengaluru has transformed from being a pensioners' paradise to the most disruptive city in the world. He also emphasised that the government and the real estate sector must collaborate to create a sustainable India.

"Karnataka has tremendous real estate potential, and Bengaluru is poised to lead this growth, with proptech emerging as a catalyst. We are at the right time to create platforms where the industry, the real estate sector, and the government can come together to develop the right policies for the sector," minister for information technology & biotechnology and science and technology said.

He also mentioned that while slogans are being made elsewhere, the real work is being done in Karnataka. This, Kharge said, is why when the world looks at India, it is specifically focusing on Karnataka.

"We have a great policy, great talent, a great ecosystem, a strong incubation system, and a great beyond Bengaluru policy, but the need of the hour is grade-A commercial buildings. The government is committed to working more closely with the proptech sector to build a more sustainable India," added Kharge.

Delivering the inaugural address, Nirupa Shankar, Joint Managing Director of Brigade Group, said, "The PropTech landscape has undergone a dramatic transformation. Technology is intricately woven into every aspect of real estate development, from project planning and design to construction management and building operations. It's not just about speed and efficiency anymore; safety and sustainability are paramount." According to her, real estate development is inevitable, but it is up to the companies to ensure it happens in a way that safeguards the environment and builds smarter cities for the future.

Amit Kumar, Senior Executive Vice President of Kotak Bank, who delivered the keynote address, pointed out key pain areas in the real estate sector, such as the need for technology-driven agility, longer onboarding processes, complex cash flows across multiple stakeholders, and fragmented regulations at the state and local levels.

"From a banking perspective, we need to leverage India’s tech stack to simplify KYC and documentation through Aadhaar and Digi Locker integrations for faster validation of buyer credentials, seamless access to financial data for credit assessment, and e-sign enabled smart contracts for lease agreements and project tenders. Blockchain technology can play a vital role in ensuring transparent, tamper-proof property transactions, land registration, and the tokenisation of property ownership," he added.

He also suggested that AI could be used to leverage transaction data for better credit assessments of buyers and developers, as well as for virtual property tours and handling customer queries.

"Today, 62 per cent of value-based transactions in India flow through UPI. This shift, from P2P dominance to a B2B and B2C ecosystem, holds immense potential for real estate. Faster transactions, lower costs, and a secure environment created by the digital identity stack are game changers. The future of real estate is closely tied to advancements in the digital landscape," said Kumar.

Over 500 delegates from across industry and academia attended Propagate 2024.