Delhi allows NOC at 25% IFC payment, relief for builders

The Delhi Jal Board (DJB) has approved a reform allowing applicants to obtain a No Objection Certificate (NOC) by paying just 25 per cent of the applicable Infrastructure Charges (IFC) at the building plan approval stage.

The decision, under Water Minister Parvesh Sahib Singh, is expected to benefit lakhs of people whose construction and redevelopment projects were stalled due to high upfront IFC payments.

Under the new system, a provisional NOC can be secured with 25 per cent payment, while the remaining amount will be adjusted later based on final rates at the time of water connection sanction. The reform aims to reduce financial burden and speed up approvals.

The move follows concerns over a revised IFC calculation method, which shifted from occupancy-based to floor-area-based charges, significantly increasing costs — often by five to ten times — and delaying projects across Delhi.

Speaking on the decision, 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. We decided to fix it with a practical and humane approach.”

He added, “With just 25 per cent payment, construction can begin. The remaining amount will be fairly adjusted later.” Highlighting the broader vision, he said, “This reform aligns with Prime Minister Narendra Modi’s vision to promote ease of doing business and reduce unnecessary compliance burdens. Our effort is to simplify processes, remove bottlenecks and empower citizens and developers.”

Properties up to 200 square metres would remain exempt from IFC, while larger plots may see overall charges reduced by 50-70 per cent. The move is expected to boost construction activity, generate employment and improve compliance.

Reaffirming the intent, Parvesh Sahib Singh said, “Our goal is not to maximise revenue, but to create a fair and balanced system. When people can pay easily, the system becomes stronger. We are committed to making home construction in Delhi simpler, faster and more transparent.”