Karnataka is working on India’s first circular economy policy, Karnataka Minister for Information Technology and Biotechnology and Science and Technology Priyank Kharge said on Wednesday.
The circular economy aims to prevent waste through processes such as repair, reuse, refurbish, remanufacture, recycling and composting. Governments around the world are increasingly adopting it, especially to address challenges related to climate change.
As part of this policy, 20 percent of all construction materials will be required to be sustainable, he said.
Kharge was speaking at Propagate 2024, the annual flagship event of Brigade REAP, a real estate accelerator program in Bengaluru.
The summit focused on proptech, where industry experts discussed the latest technology trends, innovations, and key factors needed to scale the next unicorn in proptech and urban tech.
According to Kharge, thanks to various timely policies implemented by the Karnataka government, Bengaluru has transformed from a pensioner’s paradise to the world’s most disruptive city. He also emphasized that the government and the real estate sector should collaborate to build a sustainable India.
“Karnataka has huge real estate potential, and Bengaluru is poised to lead this development, with PropTech emerging as a catalyst. Creating platforms where the industry, real estate sector and government can come together to develop the right policies for the sector. We are at the right time to do that,” he said.
He also said that while slogans are being raised elsewhere, the real work is being done in Karnataka. Kharge said, this is why when the world looks at India, it focuses specifically on Karnataka.
“We have great policy, great talent, great ecosystem, strong incubation system, and even better than Bangalore policy, but the need of the hour is Grade-A commercial buildings. The government is committed to working closely with the proptech sector to build a more sustainable India,” added Kharge.
Nirupa Shankar, Joint Managing Director, Brigade Group said, “The proptech landscape has undergone a dramatic transformation. Technology is intricately woven into every aspect of real estate development, from project planning and design to construction management and construction operations. It’s no longer just about speed and efficiency; Safety and sustainability are paramount.” According to him, real estate development is inevitable, but it is up to companies to ensure that it is done in a way that protects the environment and builds smart cities for the future.
Amit Kumar, Senior Executive Vice President, Kotak Bank, who delivered the keynote address, highlighted key pain areas in the real estate sector, such as the need for technology-driven agility, lengthy onboarding processes, complex cash flow across multiple stakeholders, and. Fragmented regulations at the state and local levels.
“From a banking perspective, we need to leverage India’s tech stack for buyer credentials through Aadhaar and DigiLocker integrations to simplify KYC and documentation, seamless access to financial data for credit assessment, and e-sign enabled smart contracts for lease agreements and project tenders. Blockchain technology can play an important role in ensuring transparent, tamper-free property transactions, land registration, and tokenization of property ownership,” he added.
He suggested that AI could be used to leverage transaction data for better credit ratings of buyers and developers as well as virtual property tours and handling customer queries.
“Today, 62 percent of value-based transactions in India flow through UPI. This shift, from a P2P dominance to a B2B and B2C ecosystem, has immense potential for real estate. Faster transactions, lower costs, and a secure environment created by digital identity stacks are game changers. The future of real estate is closely linked to the advancements in the digital landscape,” said Kumar.
More than 500 representatives from across industry and academia participated in Propagate 2024.