Why project approvals are delayed often?

Q: Most of the times there is delay in starting a project by developers. They say that approvals are pending. Why is this happening so always? Is that really true that approvals take so long time?

Puneet Laskar,

28th February 2013

Real estate News in Delhi

apartments in india

real estate projects

project approvals

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Replies (5)

What is the status of single window clearance? Is this going to help anyway.

Puneet Laskar,

11th December 2013

Comment

For developers, a “single window clearance” is a distant dream that would prevent them rushing from pillar to post to get different kind of approvals. Builders across the nation have been pitching for such a window for quite sometime now, since they are of the notion that such a move will put a nip in the bud of the issues related to approvals.

Kaushik Bardia,

11th December 2013

Procuring the necessary approvals is a cumbersome task, according to property developers. In regard to the fact that developers need to acquire more than 50 approvals from various government departments, the process can be tagged as time-consuming. The process generally sets off with obtaining an ownership certificate that takes around 15 days to acquire, however, it usually ends up taking a few months.

Kaushik Bardia,

11th December 2013

Comment

EIA clearance along with archaeological clearance consume nearly 1-3 years. In addition to the woes of the developers, there is the approval for building layout, which consumes 1-3 years. Ideally, a building permit takes 30-45 days for clearance, however, it is often extends to 8-12 months.

Mangal P, Bangalore

11th December 2013

Over the years, the real estate sector of the nation has been plagued by a number of factors, a project delay being the primary one. A delay in a real estate project adds to the woes of the builders and investors, citing a number of financial obligations. According to market reports, a developer puts up a number of reasons for project delay some of which include funding problems, macroeconomic conditions, approval issues and government formalities.

Roshan Singh, Bangalore

10th December 2013

Comment

In addition to it, a project’s lifecycle has a collegial relation with the future ventures of the builder and his finances. Hence, project delays give birth to a vicious cycle of business mismanagement and funding gap. According to key developers, the two foremost reasons for project delays include- acquiring approvals and obtaining the all the clearances.

Mangal P, Bangalore

10th December 2013

The average time taken by builders for getting approvals is 196 days. The real estate sector in India has been facing so many such issues. A recent Economic Survey 2013 says that within this time the average sales value would have increased by 40%.

Sajal Das, Kolkata

7th March 2013

Comment

Hi Puneet, do you know this? Before the construction activity of a project has to be started, the builder has to complete 34 procedures to get clearances which would take at least six months time which is very time-consuming.. The system has to be changed in order to avoid this kind of delay..

Kaushik Bardia,

7th March 2013

Comment