Single window clearance remains a pipe dream
Acceptance for land and building across states are not consistent. Additionally in some places they are contradictory and differ in order of importance. Recent study of Planning Commission has been used by the sources to observe the differences and how they affect investors.
Key regulatory framework that bears the greatest significance is the time taken to get land and building approvals in place, for an investor. The planning needs to be done by an investor for the finances and prepare for contingencies that could come in the way of effective project performance. This has an impact on approximately all industrial activity and more so real estate development. A lot of devotion has been devoted by the World Bank to the processes in this space while grading countries on the ease of doing business.
Recently a survey has been carried out by the Planning Commission across all states on the business regulatory environment and impediments faced. This survey was charged the firm Deloitte, whose report has been seen by the sources .Plan panel identified many factors out of which some of the important factor was the land and building approval mechanism across states, which has a great role playing in the perception of the business environment in that state as being conducive or not.
Time taken for conversion of land use, and time taken for building approvals were the two parameters which were surveyed. Two states Madhya Pradesh and Andhra Pradesh stand out for the development they have made in cutting red tape, when compared across key real estate markets in the country. Around 48 days are taken for conversion of land use in Madhya Pradesh on the other hand building plans get approval in 34 days on an average. As per the report the processes have been surveyed in getting industrial activity started, so that timeline might not be accurately the same for a real estate project, but throws some light on the competence of the approving authority.
The accompanying table shows the picture across several states. As long as eight months are taken for conversion of agricultural land in the real estate market of Haryana whereas in Maharashtra that could stretch to one year. If development is carried out in lands demarcated by the authority for that purpose such as industrial townships or lands sold by the urban development authority, the process could be shorten. As per survey respondents Punjab is a laggard state as in many cases due procedure is rarely followed. The states that have witnessed substantial real estate activity includes Uttar Pradesh, Karnataka, Tamil Nadu, West Bengal, here the time taken could range from 4-6 months. Kerala scores remarkably well on this score at 65 days and Gujarat at 100 days, whereas Rajasthan is longer at 195 days.
Though some of these states depict a picture of growth in reformation procedures, they are by no means complete for there are several serious lacunae that still continue.
Shyam Sunder, a Chennai-based advocate who has recently released alleged that in its registration departments, Andhra Pradesh has adopted the best practices while Delhi, the national capital ranks among the worst.
Source: Indian Express
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