Country’s ‘Ease Of Doing Business’ Rankings Hit By Construction Delay

Indian economy is slowly getting back on the line with a fair ascend in the capital graph across the major cities. Reportedly Central government has come up with various kind of dynamism in order to rectify the process, wistfully there has been no positive response in India’s ranking in ‘ease of doing business’- declared by the World Bank in latest report. Specifically the existing civic administration and lagging process of real estate development approval can be spotted as unfavorable aspects behind the static condition. Here we shall probe how this delay is impacting ease of doing business.

Complex approval process–

There’s an existing ponderous approval system which has 3 lengthy stages involved i.e.- pre construction, in- construction, post-construction approvals-
 Pre-construction– This is the phase when builders seek approvals for the site and construction lay-out, building permit from the civic bodies, archeological and environmental clearance, road access sanctions, civil aviation, fire and ground water authority
 In-construction approvals contain pollution clearance and power infrastructure clearance
 Post-construction is clearing building completion approval, possession certificate barring service plan and service connection permit

Single Window Clearance–

For accelerate the approval process the sector has a major need of single window clearance process for simplifying the approval gateway. However, the Union Urban Development Minister has announced that a new system will be set up for speeding up the real estate construction sector project approval process under which all projects will be sanctioned within two months from the time of application.

India has been receiving foreign fund assistance from the tie ups with Korea, Japan and Cyprus. As per the latest report on EODB by World Bank titled ‘Doing Business 2017: Equal Opportunity for All’ India holds the rank of 130th among 190 other countries. This year a lot of improvement has been seen in the electricity connectivity where as the major whiner is the real estate property registrations and construction permits for drop rankings. Construction permit ranking this year is 185th.
According to the current infrastructure despite of the existing GST bill the tax structure is still very fragile. However the bill is partially in action there has to be major modification implemented in the entire construction business and registering properties in India. After the execution of ‘Insolvency and Bankruptcy Code’ India should witness substantial rise in the rankings expected. Adding on every Indian state is working on notifying RERA rules and formation of property civic body based on which this sector will get relieved from complex approval policy and obtain a single window clearance system approval policy that it had been looking for a long time. Now 162 days have been limited for a construction permit. Adding on in a recent report of HUPA it’s revealed the urban local bodies will be given more authorities in terms of enabling the single window clearance system.

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By LNN (Liyans News Network)