Small Housing Projects to Avoid Delays in Approvals

Bangalore: To construct a project, developers run from pillar to post to get approvals. And delays in obtaining approvals mean delays in project. So, to avoid delays in getting approvals, Value & Budget Housing Corporation (VBHC) is coming up with smaller housing projects that spans over 5 acre. Interestingly, such kind of housing projects do not require the clearance from environment ministry, reports Ravi Teja Sharma of Economic Times.

VBHC has also planned to keep the smaller buildings height at 15 metres in order to avoid obtaining clearances from Airports Authority of India (AAI), which in turn will save more time for builders. This smaller housing project concept has been promoted by the former Citibank executive Jaithirth Rao and PS Jayakumar. "Our biggest challenge has been getting approvals on time. It delays our execution and increases cost. We can do a five-acre project faster," said Rao.

According to developers, a delay in obtaining project approvals from government is another significant reason for the hike in project prices. This means, the cost of projects go upward due to the delays in approvals which in turn put pressure on developers to increase prices. "Therefore, the project becomes less affordable and fewer middle-classes can buy it. It's almost as if the government of this country wants only the rich to buy homes," added Rao.

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