In what can be pitched as a step forward to ensure ease of constructing homes in the Capital, the Delhi government has decided to rationalise infrastructure charges. The Delhi Jal Board (DJB) has approved a policy reform to ease the burden of Infrastructure Charges (IFC) — a longstanding hurdle in the construction and redevelopment across the city, said officials.
“We were receiving repeated complaints that high IFC was stopping people from building their homes. This was neither fair to citizens nor efficient for the system. We decided to fix it with a practical and humane approach,” Water Minister Parvesh Sahib Singh told reporters on Friday.
With the latest revision, consumers and developers will now be able to obtain a provisional No Objection Certificate (NOC) by depositing just 25% of the applicable IFC at the stage of building plan approval. The remaining 75% of the amount will be adjusted later based on the final applicable rates at the time of water connection sanction. Singh said, “We are reshaping the system to suit people, not forcing people to struggle with the system. With just 25% payment, construction of a house can begin. The remaining amount will be fairly adjusted later.”
The move, officials said, will help the DJB earn revenue and keep a record of consumers and prevent water theft. “In recent years, changes in IFC calculation methodology, shifting from occupancy-based assessment to floor-area-based charges led to a sharp increase in costs. In many cases, charges rose 5 to even 10 times, creating a heavy financial burden and halting construction and redevelopment activity across Delhi,” explained an official. As a result, many property owners were unable to secure NOCs, delaying building approvals and redevelopment projects.
Properties up to 200 square meters remain exempt from IFC while larger plots will benefit from the revised, rationalised framework. The overall IFC liability could be reduced by 50% to 70% in many cases, dramatically easing costs for citizens,said officials.
Officials also said that the policy will also have a larger Impact and is expected to boost construction and redevelopment activity, generate employment and economic momentum, improve compliance and trust in the public system and promote ease of doing construction in Delhi.
Highlighting the broader vision, the Water Minister said, “Our effort is to simplify processes, remove bottlenecks, and empower citizens and developers to move forward without delays. Delhi must become a model of efficient, citizen-friendly governance.”
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The Infrastructure Charges are paid by the buyers to the government during the registration of the property and documentation process for facilities provided by different authorities like water connection, pipeline, sewer line, roads, electricity poles, among others.
Currently, these charges vary based on the houses and properties that fall in the category A-H as set by the government. Upscale societies like Jor Bagh, Vasant Vihar, and Safdarjung Enclave come under category ‘A’, while the least developed places and unauthorised colonies, mostly located in Outer Delhi, fall in the category ‘H’.
Officials said that the move also helps the residents in seeking hassle free water, sewer and electricity connection while building a new house or building.
“Our goal is not to maximise revenue, but to create a fair and balanced system. When people can pay easily, the system becomes stronger,” the Minister said.
