E-governance can ensure fast and transparent approvals: Builders and buyers wait for centre’s directive
Deepak Parekh the Chairman of housing finance major HDFC, said that various approvals for housing projects take as long as 18-24 months, particularly in some big cities, and the construction gets delayed even if developers wish to do it immediately. If an online single-window clearance system is maintained for the approvals, then the projects can start fast and the buyer will not have to bear the cost.
There is a lot of money which exchanges hands under the table known as ‘’speed money’’ to provide fast approvals to the builders and due to the multiplicity of approvals in this sector, there is no transparency. And finally the buyer suffers- first due to delays and then due to hiked costs.
Meanwhile, the developer needs to service the loan taken for acquiring the land, without receiving corresponding cash flows. Further, because of the multiplicity of approvals, speed money is demanded, often at every stage of approval. Parekh stated the real situation of the industry and requested the government to take measures.
Stressing the need to make housing more affordable for Indians, Parekh said in his annual letter to shareholders of HDFC that the transparency and timely approvals can reduce costs for the end consumer by almost 20 %.
Parekh added that land is a state subject; however the center should urge all the states to move towards e-governance. A few states have already demonstrated that red tape can be cut as far as granting of building approvals are concerned, Parekh further added.
Source- The Economic Times
