Minister for faster approvals to boost investments in infra sector

The Dollar Business Bureau With an aim to expedite the process of construction activity, the Indian government on Tuesday called for the fast processing of approvals required for taking up construction projects in urban areas through rationalization. To this effect, the government called for decrease in number of approvals and No Objections that are usually followed for approving a construction activity. If implemented on a larger scale, this move by the government would definitely attract investments in the infrastructure sector. In a meeting convened by the Union Urban Development Minister M Venkaiah Naidu, Ministers and Secretaries of seven related ministries held extensive discussions on the current system of according approvals and the way forward. Speaking at the meet, Venkaiah Naidu suggested that all the approvals be ensured within a period of 30 days from the date of application. Meanwhile, informing the ministers about the current pending approvals, Nandita Chatterjee, Secretary, Housing and Urban Poverty Alleviation, said, “India is ranked 182 among 185 countries on the parameters of procedures, cost and time taken for approvals.” This time taking process is adversely affecting the investments in the country, she added. She informed the ministers that at present 30-50 approvals were pending at the Central and State governments, resulting in an average approval time of 90–600 days for construction projects. Responding on the issue, several other ministers belonging to Environment and Forestry, Civil Aviation, Department of Culture, came out with guidelines to ensure fast approvals under their segments. As a solution to the problem of time-taking approvals, the Union Urban Development Minister said the government, to the extent possible, should enable a mechanism, where in only a minimum number of clearances would be required to be taken and the same accorded online in a maximum of 30 days.  However, the Secretary of Department of Consumer Affairs informed that the National Building Code-2015 that would be finalised by September, 2015, will enable single window clearance for construction projects.  Going by these discussions, it is evident that the Government of India is keen to speed up the construction activity as a process of Smart City initiative. The fast approvals of the construction projects would facilitate the Urban Ministry’s move calling the States and urban local bodies to come out with required policy and procedural innovations for attracting investments, which would as a result, boost the investments in the Indian infrastructure sector.  

This article was published on February 10, 2015.