Robust move for real estate in Delhi: DDA, MCD can approve projects on big plots
Real Estate in Delhi: A number of robust moves introduced lately have boosted the real estate industry that was reeling under a slump for a long time in Delhi. Jagmohan Garg, a leading real estate tycoon, states that the new norms hold it is not mandatory for projects built in plots of up to 1,50,000 square metres to get separate approval from the Environment Ministry to start work. However, developers are required to provide a “self-declaration” clause in case of smaller projects of less than 20,000 square metres.
The clause will ensure issuance of permission from urban local bodies (ULBs). In case of larger projects up to 1.5 lakh sq metre, the developers have to get environment clearance as well as grant construction permits from the Delhi Development Authority and the three municipal corporations in the Capital.
As a matter of fact, the environment condition required, has been integrated with the building byelaws in the Capital. It has been observed that developers face major problems in getting the environment clearance. Consequently, it shoots up the cost of the project.
“This is a culmination of sustained efforts on our part for over a year. It will give a big boost to the ease of doing business and expedite completion of building projects,” said Union Urban Development Minister M Venkaiah Naidu.
Jagmohan Garg, Delhi based businessman emphasizes that the new norms will expedite the completion of construction projects and put an end to unnecessary delays of projects.
According to the World Bank’s Doing Business Report 2017, India has one of the most time-consuming and cumbersome processes when it comes to granting construction permit. Jagmohan Garg emphasizes that the country ranked 185 in a list of 190 countries.
A notification concerning this has been issued by the Ministry of Environment, Forest and Climate Change. Delhi, as well as the other states are required to meet all the prescribed norms by the environment ministry on water conservation, natural drainage, solid waste management, energy, air quality, noise and green cover. Jagmohan Garg explains that the respective urban local bodies’ of the states will also be authorized to approve such projects.
Majority of the real estate experts are certain about the positive impact of the new laws. The move is looked upon as a beacon of hope, welcomed by the developers. “This will result in reduction in time, cost, red tape and increase the supply making the real estate market profitable,” said Sanjay Dutt, CEO India Operations, Ascendas-Sinbridge, real estate developers from Singapore.
The number of clearances required by a developer has also been cut down by the Environment Ministry. It has alleviated from 30 to a mere eight (depending on the size of the project). For instance, a project coming up in 50,000-150,000 square metre will require to fulfill just eight prescribed norms, while projects coming up in 20,000-50,000 square metre and 5,000-20,000 square metre will have to meet six conditions.
Certainly, the potential efficacy of the new norms secures great hopes for a sustainable development in the real estate segment.
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