NEW DELHI: In a major relief to individual consumers and developing agencies, the Delhi Jal Board (DJB) has approved a policy reform to ease the burden of infrastructure charges (IFC), which had long been a hurdle in construction and redevelopment across the city.
The DJB has introduced a pragmatic interim solution that will immediately benefit lakhs of people whose projects were stalled due to high upfront IFC payments. 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 amount will be adjusted later based on the final applicable rates at the time of water connection sanction.
In recent years, changes in the 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 by five to even 10 times, creating a heavy financial burden and halting construction and redevelopment activity across Delhi. As a result, many property owners were unable to secure NOCs, delaying building approvals and redevelopment projects.
Delhi Water Minister Parvesh Sahib Singh said, “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. So, we decided to fix it with a practical and humane approach. We are reshaping the system to suit people, not forcing people to struggle with the system. With just 25% payment, construction can begin. The remaining amount will be fairly adjusted later.”
“This reform is meant to promote ease of doing business and reducing unnecessary compliance burdens. Our effort is to simplify the process, remove bottlenecks and empower citizens & developers to move forward without delays. Delhi must become a model of efficient, citizen-friendly governance,” he added.
The move will ensure immediate clearance for stalled projects, faster approvals, significant reduction in upfront financial burden, improved transparency and flexibility in the system, etc.
Additionally, properties up to 200 square metres remain exempt from the IFC, while larger plots will benefit from the revised, rationalised framework. Estimates suggest that overall IFC liability could reduce by 50% to 70% in many cases, dramatically easing costs for citizens.