Dear Buyers, Don't Blame Developers Only For Projects Delays

When the World Bank assigned the 185th ranking in ease of getting construction permits in India last year, it had not factored in the introduction of an online single-window-clearance system for getting building plans approved in Delhi and Mumbai. This new system, say government data, reduced time to process and issue building plan approvals from 231 days to 21.85 days on an average in Delhi, and from 147 days to 26.39 days in Mumbai. This and some other developments may have reflected in this year's rating for India has moved to the 181th position on this parameter. We could, however, hardly call it progress if India is above only nine other countries standing at the bottom of the list.

Sample this.

A developer, says the report, has to follow as many as 37 procedures in Mumbai and 24 procedures in Delhi to get a construction permit.  In developed nations, it involves only 12.5 procedures to get the job done. Before you get the permit, you have to wait for an average 157-and-half days in Delhi and 128-and-a-half days in Mumbai. The World Bank report is based on data from national capital Delhi and financial capital of Mumbai. The next time you fall into a fit of rage and start blaming your developer for delaying the project, you may consider going easy on him in light of the fact that they are not at the starting end of this series of delays.

The middle march

If India has to feature among the top 50 nations in the next year's ease of doing business report, it will have to work hard to improve the process to get a construction permit which has been a drag on the overall progress. Since the report ranked India among the top 10 “improvers” globally, this might actually be doable, says Jaitley. 

"The Prime Minister said our target should be to take India immediately into first 50. I believe this is doable, and, therefore, these remaining three-four areas, where work has to be done, we will be pushing it with all the greater force," he said.

India still lags in areas like starting a business, enforcing contracts and construction permits, observed the World Bank.

"The three-four areas where we haven't been treated very high are all areas where significant amount of work is in progress and once its impact is shown to the ground, I'm sure it will be taken into consideration in next year's ranking," said Jaitley, adding that the Centre had been urging states to move all construction permit applications online.