 "Maharashtra Govt mulls reduction in number of approvals needed for realty sector")
The government of Maharashtra has asked municipal corporations in the state to work on cutting the number of approvals needed for a project in the realty sector to about 70, from the present level of 200.
It had earlier decided to reduce the number of clearances for an industrial unit to 37, from 76. This is on similar lines. Civic bodies have also been asked to consider a reduction in the number of days for providing all clearances to no more than a month. And, to introduce self-certification by builders and developers, and certification by consultants. This is to save time and cost.
This step is in response to recent complaints from those in the sector on a time-consuming process of approvals. Builders Association of India spokesman Anand Gupta told Business Standard, “In the case of Brihanmumbai Municipal Corporation alone, there are 36 approvals required from its various departments, 16 from the state government and 13 from the central government. Besides, there are sub-permissions. The time taken for these clearances is 18 to 24 months and is the root cause for the high value of property, beside non-delivery of houses in time.”
He suggested a single-window clearance system, with all approvals within 15 days.
Gundecha Group chief Paras Gundecha said there had been no visible change in the time required for many clearances. “This apart, realty players have to pay high premium charges, government and civic body fees. This leads to high property rates. The government will have to make suitable changes if affordable housing is to become a reality,” he said.
A property developer, who develops properties in central suburbs, shared Gundecha's view citing that development charges, premium and FSI charges have doubled in the last one year. "The premium for public parking was 40 per cent earlier. Now it has risen to 60 per cent. Environment clearances has gone up to Rs 6 lakh"' he says.
However, Hiranandani Constructions, managing director Niranjan Hiranandani, believes that approval process has improved in the last couple of months and still improve in the coming months. "Charges have gone up adding to our cost. We are not happy with it. But the government is talking about improving ease of doing business which i think is very positive," he adds.
