Handicraft exporters lose out as builders flout green norms

Handicraft exporters lose out as builders flout green norms

Arpit Parashar

Delhi Newsline, India

NOIDA, September 03: HUNDREDS of small and medium exporters of cottage products stand to lose international customers as builders of a Noida mart have “failed” to comply with environment law.

The Union Ministry of Environment & Forests has ordered a halt to construction of the second phase of the Indian Expo Centre & Mart Ltd (IEML) as stipulated arrangements have not been made for multi-level parking, sewage treatment, waste disposal, saving energy, and tapping solar power. The ministry issued orders to halt work on May 26. However, IEML managing director Rakesh Kumar told Newsline that it was stopped only “a few weeks back.” Those in the know say that obtaining clearance and completing construction could take at least six months.

An expo is scheduled for October, so businesses hoping to use the 900 showrooms and a few exhibition halls being built under the second phase are unlikely to be able to take part in it.

Putting the environment ministry’s requirements in place could cost some Rs 90 crore, and those who have invested in the mart say IEML and the builders had jeopardised their prospects by trying to cut corners to save money.

IEML was set up by a group of handicrafts exporters as a special purpose vehicle. The foundation stone was laid in 2003, and in the Rs 300 crore first phase, 900 showrooms and four exhibition halls together occupying 17 lakh square feet were put in place.

When the Rs 500 crore second phase was planned, the Greater Noida Industrial Development Authority demanded environment clearance from the Central ministry. IEML applied in December 2006 and the ministry set 15 conditions.

IEML chairman Navratan Samdadiya confirmed work had been halted and said, “We are awaiting the ministry’s clearance.”

But investors feel they have been misled. “We paid the amount before construction started. We have been making losses due to the delay in handing over possession. Our suppliers have also been suffering due to this,” said an investor. “Some of us could go bankrupt if the delay is prolonged.”