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Bank guarantees aim to boost environmental compliance in Goa's construction industry

In a move aimed at addressing public concerns and ensuring environmental compliance in the construction industry, the Goa State Pollution Control Board (GSPCB) recently announced that it will now require builders constructing more than 25 units in housing complexes to provide bank guarantees ranging from Rs 5 lakh to Rs 40 lakh. The primary objective of these bank guarantees is to ensure the effective functioning of sewage treatment plants (STPs) within these housing complexes.

Mahesh Patil, Chairman of GSPCB, revealed that the decision to impose bank guarantees stemmed from numerous complaints received by the board from the public. These complaints highlighted the persistent issue of faulty STPs in housing complexes after builders handed them over to housing societies. 

Builders will be required to provide bank guarantees based on the project's cost, which can range from Rs 5 crore to over Rs 500 crore. Builders have to pay the bank guarantees when they apply for the consent to establish. At that stage, board officials will visit the complexes to check whether STPs are working properly.

Under the new framework, if an STP is found to be malfunctioning, the builder responsible will forfeit the bank guarantee, and the collected amount will be allocated towards repairing the STP. However, in cases where the STP adheres to the specified rules and functions correctly, the bank guarantee will be returned to the builder.

The bank guarantee amounts have been categorized based on industries, with minimum and maximum amounts applied for Red and Orange category industries. In the case of healthcare establishments, the bank guarantee levied may be Rs 2 lakh for a unit of 50-100 beds and Rs 10 lakh for a unit of 100 beds and more. For Green category industries, which are generally considered non-polluting, bank guarantees are not always necessary. Nevertheless, the maximum bank guarantee amount for Green category industries will not exceed the minimum amount set for Orange category industries. Decisions regarding these guarantees will be made on a case-by-case basis by the board's member secretary, senior environmental engineer, and the concerned taluka assistant environmental engineer.

With this innovative approach, the GSPCB aims to enhance environmental accountability in the construction sector while ensuring that sewage treatment plants in housing complexes across Goa operate efficiently, reducing environmental impacts and addressing long-standing public grievances.

 

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