The RoofandFloor Team
Real estate developers and builders in India have long sought the single window clearance system with strict timelines. A single window clearance will create a common platform for real estate developers and builders to submit all documents and applications at a single location or to a single authority.
In September 2015, Minister for housing and urban development M. Venkaiah Naidu said the Central Government will work towards establishing a single window clearance system for layout approvals and building permissions. Developers say that single window clearance will bring in accountability and transparency into the market raising consumer morale as well as market demand. It will also bring down corruption inherent within several governmental agencies at several levels, they claim.
Currently, developers must deal with multiple government agencies to obtain clearances and permissions during various phases of a project. Across various States, developers apply for about 33 clearances. Getting these clearances approved from different government agencies takes 12 to 18 months.
A single window clearance is expected to significantly bring down the approval time. Developers can obtain permissions in a simple and timely manner increasing efficiency as well as savings. This will help pass on the benefits to the buyers. For example, some developers point out that they will be able to reduce housing costs by 30-35%. Consequently, speedy completion of projects will help builders begin more projects and offer better quality in terms of project design as well.
Right now, there are multiple approval processes (which include approvals for demolition, planning, construction and completion) for residential projects depending on location, size of the plot, size of the building etc. The airport and railway authorities, Ministry of Environment, municipal corporations are some of the agencies that have to sign off before a project can begin.
While the Union Government has proclaimed its support in favour of single window mechanism, there is as yet, no fixed timeline to implement it. Developers and buyers are hopeful that with the passage of the Real Estate Regulatory Act, the single window clearance system could get the government nod soon.
However, setting up a single window clearance will not be an easy task. Simplifying legal clearances and setting up a single platform will be a cumbersome and time taking process. Also, a common platform can open up the system to more loopholes that could affect the number and quality of projects in the long term.
