57 Different Approvals To Shape Up A Realty Project

Bangalore: Developers or real estate players have to go through nearly 57 different approvals from the state government as well as central government to develop a real estate project in Delhi-NCR. Apart from this, developers have to approach various other departments to start a project in National Capital Region, reports Sumit Kumar of Economic Times.

R K Arora, Chairman and Managing Director, Supertech Group stated that "The approval process that includes the No Objection Certificates (NoC) and licences, takes about two to three years to complete and if you get stuck at some point then there is no limit. However, getting stuck is a different issue where the developer might have some problem in the project but in ideal conditions it takes a lot of time for a project to get through. Should the process be simpler and uniform, the cost per unit in a real estate project would come down by 20-30 percent,"

According to CREDAI (Confederation of Real Estate Developer's Association of India) report, it takes nearly 2 to 3 years to develop a project after buying a land and by then the land cost also increases by 24-30 percent owning to huge sum of interest payments, since bank loans are not obtainable to get required raw materials in this sector. Most importantly, the cost of whole thing gets diverted towards end users or the buyers.

Currently, in NCR, a developer has to get approvals from departments including National Highway Authority of India, ministry of environment, electricity department, fire department, pollution department, Airports Authority of India, Ministry of Labour, Ministry of Mines, Directorate General Civial Aviation and Central Ground Water Board, to name a few.