Boost for real estate in Delhi: DDA, MCD can now give green nod for projects on big plots
Currently, developers had to face huge delay in getting environment clearance. In many instances, it took over two years to get a clearance resulting in sharp cost escalation in project cost.delhi Updated: Jun 13, 2017 23:57 IST
In a big boost to the real estate sector in the Capital, projects coming up in plots of up to 1,50,000 square metres will no longer be required to get separate approval from the Union environment ministry before starting construction.
While for smaller projects of less than 20,000 square metres, developers will have to give a “self-declaration” clause, which will ensure issuance of permission from urban local bodies (ULBs), for larger projects upto 1.5 lakh sq mt, the Delhi Development Authority and the three municipal corporations in the Capital have to give the environment clearance as well as grant construction permits.
The environment condition required has been integrated with the building byelaws in the Capital.
Currently, developers had to face huge delay in getting environment clearance. In many instances, it took over two years to get a clearance resulting in sharp cost escalation in project cost.
“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.
The World Bank’s Doing Business Report 2017 found India as having one of the most cumbersome and lengthy process when it came to giving construction permit approval. India was ranked 185 in a list of 190 countries.
The Ministry of Environment, Forest and Climate Change issued a notification in this regard on Monday.
While now the law will kick off in Delhi, as and when other states fulfill the prescribed norms mandated by environment ministry on water conservation, natural drainage, solid waste management, energy, air quality, noise and green cover, their respective ULBs will also be empowered to approve such projects.
Realty experts have welcomed the move. “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 environment ministry has also brought down the number of clearances that a developer presently requires -- from 30 to a mere 8 --depending on the size of the project.
For instance, project coming up in 50,000 to 150,000 square metre will require to fulfill just eight prescribed norms while projects coming up in 20,000 to 50,000 sq. mt and 5,000 to 20,000 sq. mt will have to meet six conditions
First Published: Jun 13, 2017 23:57 IST