Single Window Approval Model for Real Estate Projects : Panel Suggests..!


A panel set up to streamline the approvals procedure for real estate projects has recommended the single-window clearance model in a report that does not have any inputs from the ministry of environment.

Large real estate projects require clearances from the Airports Authority of India (AAI) and also the environment ministry, which is a time-consuming procedure that often leads to project delays and cost escalation.

According to a senior official, representatives of the environment and forests ministry have stayed away from every meeting of the panel, which was set up last year under former Competition Commission of India (CCI) Chairman Mr. Dhanendra Kumar.

Mr.  Ajay Maken, minister for housing and urban poverty alleviation said, "We will write to the ministry of environment & forests to come on board of this committee and give their inputs for a single-window clearance mechanism".

The committee, which made a presentation to Mr. Maken last week, is expected to submit its final report by the end of the March (2013) month.

All real estate projects with over 2,00,000 square feet of built-up space need environment clearance from state governments. These state government departments follow norms laid down by the central ministry for environment & forests.

A senior environment ministry official said, ''The ministry's expert appraisal committee, which is a statutory body, takes the decision regarding clearance and an officer, therefore, can not make commitments on the issue. The environment ministry is a regulatory body and so when it comes to a single-window clearance mechanism, it can not be on the same platform as a promoter ministry"

T official adding that delays also creep in because of incomplete proposals.

A similar situation arose with the commerce ministry's e-biz portal & was resolved by providing a link to the environment ministry.

According to the guidelines, the process of granting environmental clearance should be completed within 210 days from the time the proposal is submitted to the ministry. For the final decision, the guidelines provide for 45 days after the expert appraisal committee gives its recommendation.

The report has suggested ways in which approval timelines for real estate projects can be shortened. This will help developers realign house prices, as delays in government approvals, which sometimes run into years, can push up costs by as much as 40 %.

About 20 to 30 % of this cost escalation is due to delays in environment clearance for projects, according to Mr. Lalit Kumar Jain, National president, Confederation of Real Estate Developers Associations of India (CREDAI).
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