Tamil Nadu's Construction Industry Says Excavation Curbs Stalled Projects

Hundreds of construction projects across Tamil Nadu have come to a near standstill over the last eight weeks as authorities have allegedly stopped granting permissions to transport excavated earth from approved construction sites, triggering a major crisis in the real estate and infrastructure sector.

NDTV has accessed a representation sent by CREDAI Chennai President Mehul H Doshi to Chief Secretary M Sai Kumar, urging the government to immediately restore a transparent and time-bound approval mechanism for transporting excavated earth.

Thanking the Tamil Nadu government for its efforts to eliminate corruption and improve transparency, the letter says the "suspension and non-grant of permissions for transportation of excavated earth generated from approved construction project sites" has created serious operational difficulties, particularly in and around Chennai.

"As part of the construction process... timely permission for transportation and disposal of such excavated earth becomes essential for the uninterrupted continuation of construction activities," the letter states.

According to CREDAI, the disruption has delayed project execution and completion timelines, exposing developers to possible violations of commitments made to the Tamil Nadu Real Estate Regulatory Authority (TNRERA). It also warns of potential litigation from homebuyers over delayed possession, escalating project costs due to rising input prices, mounting financial stress on developers, and a cascading impact on employment and allied industries.

Calling for urgent intervention, CREDAI has requested the government to establish "an efficient mechanism for the expeditious processing and grant of permissions" and a "streamlined, transparent and time-bound approval mechanism" that would allow legitimate projects to proceed while maintaining regulatory oversight.

A leading builder, who did not wish to be identified, told NDTV, "No new excavation has begun at approved sites as collectors don't give permission."

"We used to pay Rs 5 lakh as a bribe earlier for this permit. Now that the government has made approvals hassle-free, the Chief Minister has to ensure this is sorted immediately. There should be a transparent, time-bound system in place for permission to transport excavated earth," he added.

The builder claimed the uncertainty has left heavy machinery idle, increased financing costs and delayed several residential and commercial projects.

Despite several attempts, NDTV could not reach the concerned minister and the secretary for comment.