It’s only been a month after MCGM (Municipal Corporation of Greater Mumbai) announced its new single window online application system for processing construction permits. This system has brought in a wave of optimism in the real estate sector. According to a latest report by Jones Lang LaSall (JLL) India’s Ramesh Nair, the system, if implemented, would result in 52% reduction in the number of permissions required to obtain building approvals.
JLL India’s COO – Business and International Director Ramesh Nair said, “It is a game-changer system by BMC’s Ajoy Mehta but only time will tell whether it will work or not. The industry for the first time is being bullish and optimistic.” It is good news not only for the real estate players but also for customers who are usually passed on the escalated cost of the project. Nair added that a one year delay in a project would push prices up by 20%. This would open-up a range of affordable housing and boost absorption of real estate in the city.
One of the highlights in the new system is that developers will require 58 certifications as against the 119 earlier. This would lead to reduction in the number of approvals, no objection certificates (NOCs) and BMC remarks. The new system will reduce the approval timeline from 1-2 years in the past to 60 days.
The approvals are granted by both state and central government. Keeping that in mind, Chief Minister Devendra Fadnavis had instructed the MCGM to integrate all state and central government permissions within the single-window system. “It is the biggest achievements of CM Devendra Fadnavis,” said Nair. Environmental clearance is one such clearance that requires permit from state and central government. The timeline for this clearance is anywhere between 2-6 months. In the end, this process brings in transparency as the IT- enabled system eliminates information irregularities.
