Karnataka Takes the Lead with India's First Circular Economy Policy: Minister Priyank Kharge
Karnataka is set to become the first state in India to implement a circular economy policy, according to Priyank Kharge, the Minister for Information Technology & Biotechnology and Science and Technology. The policy aims to reduce waste through sustainabl
Circular EconomySustainable ConstructionReal EstateProptechKarnatakaReal Estate NewsDec 04, 2024
The circular economy model focuses on maintenance, reuse, refurbishment, remanufacture, recycling, and composting. This approach is gaining traction worldwide as a means to combat climate change. As part of the new policy, 20% of all construction materials will be required to be sustainable, promoting a greener and more efficient construction sector.
Kharge highlighted that Karnataka has seen significant transformation, evolving from a city known for its retirement communities to a global hub of innovation and disruption. The government's timely policies have played a crucial role in this shift. “Karnataka has tremendous real estate potential, and Bengaluru is poised to lead this growth, with proptech emerging as a catalyst,” he said. He further emphasized the need for collaboration between the government and the real estate sector to build a sustainable India.
While other regions focus on slogans, Kharge pointed out that Karnataka is the place where the real work is being done. “When the world looks at India, it is specifically focusing on Karnataka. We have a great policy, great talent, a great ecosystem, a strong incubation system, and a beyond Bengaluru policy. However, the need of the hour is grade-A commercial buildings. The government is committed to working more closely with the proptech sector to build a more sustainable India,” he added.
Nirupa Shankar, Joint Managing Director of Brigade Group, delivered the inaugural address, stating, “The PropTech landscape has undergone a dramatic transformation. Technology is now intricately woven into every aspect of real estate development, from project planning and design to construction management and building operations. It’s not just about speed and efficiency; safety and sustainability are now paramount.” Shankar underscored the importance of sustainable development, emphasizing that while real estate development is inevitable, companies must ensure it is environmentally friendly and contributes to building smarter cities.
Amit Kumar, Senior Executive Vice President of Kotak Bank, highlighted key pain points in the real estate sector, including the need for technology-driven agility, longer onboarding processes, complex cash flows, and fragmented regulations. From a banking perspective, he emphasized the importance of leveraging India’s tech stack to simplify KYC and documentation processes, using Aadhaar and Digi Locker integrations for faster validation of buyer credentials, seamless access to financial data for credit assessments, and e-sign enabled smart contracts for lease agreements and project tenders.
Kumar also discussed the potential of blockchain technology in ensuring transparent and tamper-proof property transactions, land registration, and the tokenization of property ownership. AI could play a crucial role in leveraging transaction data for better credit assessments of buyers and developers, as well as for virtual property tours and handling customer queries. “Today, 62% of value-based transactions in India flow through UPI. This shift, from P2P dominance to a B2B and B2C ecosystem, holds immense potential for real estate. Faster transactions, lower costs, and a secure environment created by the digital identity stack are game changers. The future of real estate is closely tied to advancements in the digital landscape,” Kumar said.
Propagate 2024 brought together over 500 delegates from various industries and academia, providing a platform for in-depth discussions on the latest tech trends, innovations, and the key factors required to scale the next unicorn in proptech and urban tech.
Frequently Asked Questions
What is a circular economy?
A circular economy is an economic system aimed at eliminating waste and the continual use of resources. It involves processes like maintenance, reuse, refurbishment, remanufacture, recycling, and composting.
What is the key requirement of Karnataka’s circular economy policy for construction materials?
As part of the policy, 20% of all construction materials will be required to be sustainable.
What is the significance of Propagate 2024?
Propagate 2024 is the annual flagship event of Brigade REAP, a real estate accelerator program in Bengaluru. It focuses on proptech and features industry experts discussing the latest tech trends, innovations, and the key factors required to scale the next unicorn in proptech and urban tech.
How is technology transforming the real estate sector?
Technology is intricately woven into all aspects of real estate development, from project planning and design to construction management and building operations. It enhances speed, efficiency, safety, and sustainability.
What role does blockchain technology play in the real estate sector?
Blockchain technology can ensure transparent, tamper-proof property transactions, land registration, and the tokenization of property ownership, making the real estate sector more secure and efficient.
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