Single-window clearance in Telangana may boost Realty

Telangana Chief Minister K. Chandrasekhar Rao’s assurance to possibly bring about a Single Window Clearance (SWC) system in the state would go a long way in boosting the real estate market. This was stated in a meeting that he had with Telangana Inc. This measure would create a conducive environment to undertake business in the state. Incidentally, the proposed SWC system that he proposes to introduce in the state is touted to be ‘better’ than the Singapore SWC model.

Bringing about a SWC system will go a long way in reducing the project completion time for residential as well as commercial projects. One of the major hurdles in the current scenario is the time lag faced by developers to get approvals from various government departments before commencing work on their projects. As it drags on for months, it leaves the project schedule of developers in complete disarray, thereby affecting their margins. This has a long-term impact on their undertakings as it leads to delays in their future projects as well, thereby causing a serious dent to their image. Hence, the SWC system that the Telangana government plans to introduce will be a major boon for developers.

Singapore SWC system
The chief minister has envisioned to make the SWC system even better than that in Singapore. Currently, the SWC system in Singapore is rated as the best in the world in terms of effectiveness.

The Singapore government established the TradeXchange as a single window for Customs clearance. It provides a total online service under the single window concept. It enables a single submission and processing of data and information. Moreover, a single window enables a single decision making for customs release and clearance of cargo. It is a nationwide electronic trade documentation system enabling the trading community to submit permit applications electronically to the respective government bodies for processing and approval.

It provides seamless interconnectivity among commercial and regulatory systems for the country’s trade and logistics community. It offers a single electronic window for integrated work flow, submissions as well as inquiries to the sea port, airports, maritime authorities, customs and controlling agencies. The advantage gained for the adoption of the single window system is a lowering of business costs by about one-third from a typical application cost of about S$3. Going by this, businesses can expect to save about S$75 million over a period of about 10 years.

Faster clearances

Addressing an interactive session with Telangana Inc., KCR stated that Telangana will have a better SWC system in place compared to that in Singapore, ensuring that clearances are obtained within 20-22 days. He was hopeful that there would be no hype created surrounding this announcement as he wanted to introduce a realistic industrial policy. This meeting was convened as part of the government’s effort to pool together the industry’s varying views before formulating the new industrial policy.

Identifying land parcels for industry

Emphasising the government’s stand, KCR stated that the Chief Minister’s Office (CMO) would directly monitor the SWC system. This will ensure that investors obtain all the necessary clearances in a single go without them having to visit various government offices to obtain different clearances. Besides, he also informed various corporate honchos that the government was trying to identify various large land parcels that could be utilised by the industry for undertaking various development activities.

Meeting attendees

Among those who attended the meeting were bigwigs of major corporate houses like Dr. Reddy’s Laboratories, Cyient Ltd and Apollo Hospitals. Besides, representatives of about 45 national as well as state-level industry associations like National Association of Software and Services Companies (Nasscom), Confederation of Indian Industry (CII), Federation of Indian Chambers of Commerce and Industry (FICCI), Indian Pharmaceutical Association (IPA), Dalit Indian Chamber of Commerce & Industry (DICCI), Associated Chambers of Commerce and Industry of India (Assocham), Confederation of Real Estate Developers’ Associations of India (Credai), Federation of Andhra Pradesh Small Industries Association (Fapsia) and Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) were present at the meeting.