Our country is looking forward for the formation of new government in few days from now. Anything NEW brings in a lot of hope about the future. The real estate sector therefore hopes that the new government should put the construction industry – and the much neglected housing segment in particular- way up on its priority list of sectors in dire needs of reforms.
At the outset, the new government must set up a single window clearance system to cut delays in granting approvals for the housing projects– this would go a long way in checking cost escalations. It must approve that the minimum approval time comes down from the present minimum 200 days to 30-45 days. Delay in obtaining approvals often increases the cost of the housing project on an average by a factor of 1.5. Currently builders in Patna are required to procure around 34 permits for undertaking a typical housing project– this is mindless red tape, which spawns corruption on a big scale.
Realty sector is key sector of the Indian economy but successive governments at the centre ignored its need for aggressive reforms. Now the sector has a lot of hopes from the NEW Government!!! The past governments have been unmoved even in establishing a regulator for the sector and it reflects the seriousness of the past government about the housing sector and the promise of housing for all.
It goes without saying that the real estate market in Patna is in a very sorry state with all the stakeholders suffering from the apathy of the central and state government – while the developers face a tough time in getting approvals for their projects, often having to shell out huge sums to corrupt officials. On the other hand customers too face the rough end of the stick as they have no one to go but the courts if they are short-changed by builders in Patna.
The whole system is mired in corruption.
Many experts in the sector are however hopeful and say that the new government is bound to implement the key reforms needed for the sector, as otherwise the promise of “affordable housing for all” to the electorate would fall flat.
The new government should set up an IT based, single window clearing system with a single, unified form to be put up at local municipality websites. It would bring in transparency into the sector and bring to a stop the ability of the “evil group” from making money on the sly. The real estate sector in Patna needs a single platform for builders in Patna where they can apply for all the required clearances together.