BMC’s action plan to streamline construction approvals
The Brihanmumbai Municipal Corporation (BMC) has put together an action plan to reduce the waiting period for businesses to get permission for construction. From April 1, the civic body proposes to cut the 180 days required for granting permission for construction to 45 days.
In an attempt to cut red tape and delays in the building approvals system, the Urban Development department led by Chief Minister Devendra Fadnavis had directed the BMC chief Sitaram Kunte to work on the modalities for implementing the reforms.
While the prevalent system puts the onus on the applicant to procure no-objection certificates from various civic, state, and central agencies, the same would now be shifted on the BMC’s building proposal department.
How long does it take to get building approvals?
According to World Bank’s Doing Business 2015 report, India was ranked 142nd among 189 countries in the ease of doing business survey. In Mumbai, the period required for all sorts of permissions is 185 days, against 66 days in countries like Hong Kong, which are among the toppers on the list.
In order to secure permissions for construction, a developer needs to get a total of 70 no-objection certificates (NOCs). These include clearances from BMC’s own water, sewerage, storm water drain, roads and traffic, development plan and the fire brigade departments. A go-ahead is also required from the tree authority and the state pollution control board, besides clearances from the civil aviation ministry, the environment ministry and even the Archeological Society of India (ASI), among others.
BMC’s fast track plan for construction
The BMC action plan proposes to trim the waiting period for all its permits. For instance, it wants to reduce the period required for fire NOC from 45 days to 15 days, traffic clearance from 30 days to 15 days, heritage NOC from 45 days to 30 days and pest control from 30 days to 7 days.
As per the new plan, the initial application format to be filled for the approval would itself be inclusive of various requisites for NOCs from civic departments. The BMC would also evolve a standard set of guidelines for these NOCs. Once an application for commencement certificate is made, it would be shared with all the involved departments simultaneously. BMC has also fixed a deadline within which each department would have to decide on the issuance of NOC, failing which it would be deemed that the department has no-objection.
The state government on its part has initiated a process for formulating standard guidelines for clearances from the pollution control board and other state agencies. It has also decided to coordinate with the civil aviation ministry to streamline NOCs for height clearance for high-rise projects.
To expedite redevelopment permissions for buildings situated in areas identified as heritage precincts or Grade-III heritage structures, the Urban Development department is formulating fresh guidelines.
Positive fallout for real estate
According to a Colliers India report, in Mumbai the average project delay is anywhere between one and two years. The presence of multiple regulations/regulators in the MMR region has led to delay in approvals and delivery of real estate.
“Construction sanctions are so complicated and time-consuming that it is one of the major factors that lead to cost-escalation. This then is passed on to the flat buyer. It is one of the major reasons for builders not being able to provide houses in affordable prices. Mumbai’s building proposal system needs to be completely overhauled and made transparent and a concerted effort is needed to streamline the procedure,” says Prabhat Ranjan, CMD – Olympeo Infrastructure Pvt. Ltd.
With the BMC’s new action plan, timelines of constructing real estate projects could be reduced considerably thereby giving affordable housing a boost in the city. “If the BMC’s action plan is actually implemented, it will set a standard of governance for other authorities to follow,” concludes Dinkar Samant –Director Arihant Superstructures Ltd.
