Smear campaigns distort truth about Lavasa project: Lavasa spokesperson

Time and again, malicious allegations have been leveled against the Lavasa project and a recent article published in DNA headlined, ‘Don’t blame environmental rules for Lavasa’s failure’ (July 16, 2018), is no different. In the article, the authors insinuate that the Lavasa project is illegitimate. This is just partisan rhetoric that runs contrary to the facts. Not only do the authors fail to look at the painstaking efforts to put up such an incredibly ambitious project against considerable odds, but they also turn a blind eye to the lacunae in government policies, the conduct of certain so-called environmental groups, and irresponsible flip-flops by a section of the political class who are all responsible for delaying the project. These factors, followed by deadlocks in the banking system, have prolonged a solution.

The authors also seem to hint at the legality of Lavasa in their article. The fact of the matter is that Lavasa was initiated per the Government of Maharashtra’s policy for new hill stations. In June 2001, the Maharashtra government declared 18 villages with land area of 7,722 ha as a hill station. Within this area, anyone having 400 ha was entitled to approach the Government for development in accordance with the Special Regulations for Hill Station 1996. The sanction for Lavasa runs in accordance with these rules and is not exclusive. 

While the article questions the granting of Special Planning Authority (SPA) status to the project, it also does not mention that Lavasa was not the first company to be appointed as SPA under Section 40 (1-B) of the MRTP Act, 1966. Lavasa was given SPA status as there was no other town planning authority in the region during its initial phase of development. It is also necessary to state here that Lavasa’s SPA did not have unfettered powers to operate and was regulated by the Government. For instance, the SPA did not have powers to acquire land under Section 116 of the MRTP Act and it did not have any powers to grant relaxations in Development Control Regulations. Any violations in this regard would have attracted legal action by the Pune Collector. As a result, Lavasa was required to follow provisions of Section 115 of the MRTP Act including obligations to prepare and publish its Planning Proposals and obtaining approval of the Government.

Coming to the issue of proper permissions, the article claim that the Lavasa project was being conducted without them. Nothing could be further from the truth. Our company has secured over 100 clearances from government authorities, including an Environmental Clearance from the State Government. Under the 1994 EIA notification, a tourism project located at an elevation of fewer than 1,000 meters from mean sea level was exempted from obtaining Environmental Clearance from the Central Government’s MoEF. As far as protection of the environment is concerned, it was Lavasa, which had proactively conducted the Environment Impact Assessment study with the assistance of NEERI and its findings were shared with the Government.

Over the course of its development, Lavasa has pioneered many environmental initiatives where it has planted over 6,00,000 trees, improved the green cover, and raised the water table. The city is planned for a 3,00,000 population with a 60 per cent of the green cover area. The project has also been vetted and approved by SEBI for IPO. All these clearances and approvals were taken over a period of 10 years with both sides of the political spectrum constantly monitoring and regulating the project.

The misguided stoppage and subsequent clearance by the MoEF happened under the same Central Government, resulting in the current state of the project. It was at the behest of environmental groups with vested interests, political interference, and a misinterpretation of the law by government agencies that a legitimate and ambitious project has been stalled. Coming to the question of figures, the article estimated that investment to the tune of $210 billion was stuck. Factually, $882 million (Rs 6,000 crore) is the total investment so far.

It has to be understood that the need of the hour is to adopt a holistic approach to address issues for large and complex projects in India. Building the country’s infrastructure by way of modern urbanisation is a pressing requirement for the country. Instead of casting aspersions on entrepreneurs or creating doubts in minds of stakeholders, we need to overcome major challenges. This includes proper policy frameworks for mega projects, better financing structures, removing hurdles in project implementation, as well as necessary monitoring and evaluation throughout project cycles. 

While building India’s first smart city, Lavasa has always been open to constructive criticism. But groups with vested interests have only focused on tarnishing a project that will be of benefit to everyone. As a result, myths about the project have been circulated among the public at large, myths that we are confident will be dissipated when a discerning public examines the facts. 

The author is the spokesperson for the Lavasa Corporation Limited. Views are personal