Real Estate Companies Seek Single Window Clearances
With the government working closely with real estate companies to influx a renewed interest into the sector as a whole, Indian real estate companies are seeking a single window clearance mechanism from the government to streamline their projects across the country.
With a relaxation in FDI norms in the real estate sector, a large number of foreign companies are eyeing close collaboration with Indian partners. Since Indian real estate companies would not be strapped for funds any longer, they are seeking a quick clearance mechanism that can allow them to start and finish projects at a better pace. The current process of obtaining license to getting clearances and no objection certificates from various departments is a lengthy and time consuming one which acts as a deterrent for real estate companies to start projects on time.
While the new NDA government lead by Narendra Modi is being seen as a pro reform government, real estate companies still face a lot of bureaucratic stronghold which results in unnecessary delays and losses to the company and buyers. On an average a real estate player is required to get over 50 approvals from different agencies to launch a project after running from pillar to post between different agencies and departments. Industry experts believe that if the government is able to streamline and fasten the overall clearance process, the real estate companies would benefit a lot as they could use their energies towards project development rather than waste time of approvals.
While real estate companies have their reasons for reducing the number of clearance blocks and streamlining the process in a single window clearance mechanism, Industry players and experts have estimated that the prices of residential projects will come down by nearly 35% if a single window clearance mechanism is implemented. With focus on affordable housing, smart city development, commercial and real estate projects in small centers being worked upon by various real estate companies, if the approval process is streamlined, it would be a another shot in the arm for the Indian realty sector as a whole.
Affordable Housing, commercial and real estate projects, FDI norms in the real estate, Narendra Modi, NDA government, Real estate norms, single window clearance, smart city development
