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1 Streamlining Approval Procedures for Real Estate Projects Dhanendra Kumar Chairman, Committee on Streamlining Approval Procedures for Real Estate Projects (SAPREP), set up by Ministry of Housing and Urban Poverty Alleviation, Govt. of India & Former Chairman, Competition Commission of India (CCI) Disclaimer - The views expressed in this presentation are personal and do not reflect the views of the Ministry of Housing and Urban Poverty Alleviation (M/HUPA). November 1-2, 2012 Hotel The Leela, Mumbai
Transcript
Page 1: Test

1

Streamlining Approval

Procedures for Real

Estate Projects

Dhanendra Kumar

Chairman Committee on Streamlining Approval Procedures for Real Estate Projects

(SAPREP) set up by Ministry of Housing and Urban Poverty Alleviation Govt of India

amp Former Chairman Competition Commission of India (CCI)

Disclaimer - The views expressed in this presentation are personal and do not reflect the views

of the Ministry of Housing and Urban Poverty Alleviation (MHUPA)

November 1-2 2012 Hotel The Leela Mumbai

2

Overview

Importance of real estate and construction sector and key challenges1

Introduction to SAPREP Committee

Key findings of the Committee report

Recommendations and next steps

Streamlining Approval Procedures for Real Estate Projects

Your feedback and suggestions

2

3

4

5

3

Importance of real estate and

construction sector and key challenges

4

Real estate and construction sector has continued to

contribute significantly to the countryrsquos GDP Average contribution over 2011-16 estimated to be 175

bull On an average real estate contributes 8 while construction contributes 95

bull Both real estate (195 CAGR) amp construction (CAGR 183) have witnessed

tremendous growth since 2001

Source RICS Research Real estate and construction professionals in India 2020

Importance of the sector

0

20

40

60

80

100

GDP 242 1346 2080

Real Estate Services 30 128 197

Construction 28 107 164

2001 2011 2016

Contribution of Real estate and Construction to Indiarsquos GDP (USD Bn)

175175

5

Given that the sector is riddled with many complex issues

threatening to slow down growth multiple efforts are being

made by Government to address these issues

Cumbersome project

approval process

Absence of

regulatory bodyLack of market data

amp transparency

Land values

amp acquisition

Shortage of

skilled workforce Lack of standards and

uniform practices

SAPREP Committee set up by

Ministry of Housing to look at

streamlining approval procedures

Draft real estate

regulation bill

Eg NHB Residex Central

registry digitization of land

records

Focus on capacity building

in new JNNURM capacity

building schemes NSDC

etc

Eg building standards

affordable housing

standards

Land acquisition bill

valuation standards

6

Introduction to the Committee set up by MoHUPA on

lsquoStreamlining Approval Procedures for

Real Estate Projects (SAPREP)rsquo

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 2: Test

2

Overview

Importance of real estate and construction sector and key challenges1

Introduction to SAPREP Committee

Key findings of the Committee report

Recommendations and next steps

Streamlining Approval Procedures for Real Estate Projects

Your feedback and suggestions

2

3

4

5

3

Importance of real estate and

construction sector and key challenges

4

Real estate and construction sector has continued to

contribute significantly to the countryrsquos GDP Average contribution over 2011-16 estimated to be 175

bull On an average real estate contributes 8 while construction contributes 95

bull Both real estate (195 CAGR) amp construction (CAGR 183) have witnessed

tremendous growth since 2001

Source RICS Research Real estate and construction professionals in India 2020

Importance of the sector

0

20

40

60

80

100

GDP 242 1346 2080

Real Estate Services 30 128 197

Construction 28 107 164

2001 2011 2016

Contribution of Real estate and Construction to Indiarsquos GDP (USD Bn)

175175

5

Given that the sector is riddled with many complex issues

threatening to slow down growth multiple efforts are being

made by Government to address these issues

Cumbersome project

approval process

Absence of

regulatory bodyLack of market data

amp transparency

Land values

amp acquisition

Shortage of

skilled workforce Lack of standards and

uniform practices

SAPREP Committee set up by

Ministry of Housing to look at

streamlining approval procedures

Draft real estate

regulation bill

Eg NHB Residex Central

registry digitization of land

records

Focus on capacity building

in new JNNURM capacity

building schemes NSDC

etc

Eg building standards

affordable housing

standards

Land acquisition bill

valuation standards

6

Introduction to the Committee set up by MoHUPA on

lsquoStreamlining Approval Procedures for

Real Estate Projects (SAPREP)rsquo

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 3: Test

3

Importance of real estate and

construction sector and key challenges

4

Real estate and construction sector has continued to

contribute significantly to the countryrsquos GDP Average contribution over 2011-16 estimated to be 175

bull On an average real estate contributes 8 while construction contributes 95

bull Both real estate (195 CAGR) amp construction (CAGR 183) have witnessed

tremendous growth since 2001

Source RICS Research Real estate and construction professionals in India 2020

Importance of the sector

0

20

40

60

80

100

GDP 242 1346 2080

Real Estate Services 30 128 197

Construction 28 107 164

2001 2011 2016

Contribution of Real estate and Construction to Indiarsquos GDP (USD Bn)

175175

5

Given that the sector is riddled with many complex issues

threatening to slow down growth multiple efforts are being

made by Government to address these issues

Cumbersome project

approval process

Absence of

regulatory bodyLack of market data

amp transparency

Land values

amp acquisition

Shortage of

skilled workforce Lack of standards and

uniform practices

SAPREP Committee set up by

Ministry of Housing to look at

streamlining approval procedures

Draft real estate

regulation bill

Eg NHB Residex Central

registry digitization of land

records

Focus on capacity building

in new JNNURM capacity

building schemes NSDC

etc

Eg building standards

affordable housing

standards

Land acquisition bill

valuation standards

6

Introduction to the Committee set up by MoHUPA on

lsquoStreamlining Approval Procedures for

Real Estate Projects (SAPREP)rsquo

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 4: Test

4

Real estate and construction sector has continued to

contribute significantly to the countryrsquos GDP Average contribution over 2011-16 estimated to be 175

bull On an average real estate contributes 8 while construction contributes 95

bull Both real estate (195 CAGR) amp construction (CAGR 183) have witnessed

tremendous growth since 2001

Source RICS Research Real estate and construction professionals in India 2020

Importance of the sector

0

20

40

60

80

100

GDP 242 1346 2080

Real Estate Services 30 128 197

Construction 28 107 164

2001 2011 2016

Contribution of Real estate and Construction to Indiarsquos GDP (USD Bn)

175175

5

Given that the sector is riddled with many complex issues

threatening to slow down growth multiple efforts are being

made by Government to address these issues

Cumbersome project

approval process

Absence of

regulatory bodyLack of market data

amp transparency

Land values

amp acquisition

Shortage of

skilled workforce Lack of standards and

uniform practices

SAPREP Committee set up by

Ministry of Housing to look at

streamlining approval procedures

Draft real estate

regulation bill

Eg NHB Residex Central

registry digitization of land

records

Focus on capacity building

in new JNNURM capacity

building schemes NSDC

etc

Eg building standards

affordable housing

standards

Land acquisition bill

valuation standards

6

Introduction to the Committee set up by MoHUPA on

lsquoStreamlining Approval Procedures for

Real Estate Projects (SAPREP)rsquo

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 5: Test

5

Given that the sector is riddled with many complex issues

threatening to slow down growth multiple efforts are being

made by Government to address these issues

Cumbersome project

approval process

Absence of

regulatory bodyLack of market data

amp transparency

Land values

amp acquisition

Shortage of

skilled workforce Lack of standards and

uniform practices

SAPREP Committee set up by

Ministry of Housing to look at

streamlining approval procedures

Draft real estate

regulation bill

Eg NHB Residex Central

registry digitization of land

records

Focus on capacity building

in new JNNURM capacity

building schemes NSDC

etc

Eg building standards

affordable housing

standards

Land acquisition bill

valuation standards

6

Introduction to the Committee set up by MoHUPA on

lsquoStreamlining Approval Procedures for

Real Estate Projects (SAPREP)rsquo

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 6: Test

6

Introduction to the Committee set up by MoHUPA on

lsquoStreamlining Approval Procedures for

Real Estate Projects (SAPREP)rsquo

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 7: Test

7

SAPREP CommitteeTerms of Reference

bull Examine few best practices on streamlining building plan approval processes in

cities like Pune Hyderabad Mysore and Indore etc

bull Study of Bihar model on the obtaining of building plan approvals from certified

architects

bull Suggest a methodology for fast tracking CentralState building clearances

bull Suggest a systematic approach through which all cities and states can develop fast

track single window clearance mechanism giving specific focus on

ndash simplification of procedural aspects

ndash formulating single composite form with complete listing of the set of documents

necessary to accord sanction by the authorities and

ndash automated system for building plan approval with special emphasis on Affordable

Housing

SAPREP Committee was set up to study successful models in Indian states as well as

international best practices in order to suggest a methodology for fast track

CentralState building clearances

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 8: Test

8

Work done so far

bull Extensive secondary research

bull Feedback collected from states via questionnaire

bull Invited public comments

bull Committee and sub-committee meetings

ndash Representatives from approval authorities invited to attend meetings

and contribute to the deliberations

Current status

bull Draft report has been prepared and will be submitted to the Ministry of

Housing and Urban Poverty Alleviation in November 2012

SAPREP Committee

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 9: Test

9

Key findings of SAPREP Committee- Magnitude of the problem

- Legal framework and other challenges

- Developerrsquos issues due to existing process

- Consumer issues

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 10: Test

10

India ndash lsquoDealing with Construction permitsrsquo

According to a World Bank Study India has one of the

most cumbersome and lengthy process for seeking

construction permits

Source Doing Business 2013 ndash report by The World Bank and IFC

Magnitude of the problem

But still a long way to go as India

ranks 182 out of 185 countries

India has reduced time from 227 days to

196 days to process building permit

applications by implementing strict time

limits at municipalities

India ndash Overall lsquoease of doing businessrsquo

And it has a huge cost associated with

this process -passed on to consumers

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 11: Test

11

Numerous Central and State level laws rules and

regulations govern the construction activityhellip

Land title Planning amp Land Construction of buildings

NOC from Central Govt NOC from State Govt Service Installations

Indian Registration Act

1908

Various State legislations

Land Revenue Acts by all

State Governments

Town and Country Planning

Acts by all State Governments

Master Plans Development

Plans

National Building Code

2005

Local Building Bye-Laws

Water connection

Sewerage connection

Gas connection

Telecom connection

Power Electricity

connection

Water (Prevention amp

control of pollution) Act

1974 and Air

(Prevention amp control of

Pollution) Act 1981

Environnent Impact Assesment

(EIA) Notification SO 1533 (2006)

Ancient Monuments and

Archaeological Sites and Remains

Act 1958

Works of Defense Act 1903 (WDA)

Environment (Protection) Act 1986

Forest Conservation Act 1980

Legal framework

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 12: Test

12

PARRALEL PROCESS OF SERVICE INSTALLATIONS

PARRALEL PROCESS OF OBTAINING VARIOUS NOCs

Land Title Planning amp LandConstruction of

BuildingsNOCs from

Central DeptsService Utilities

Installations

Revenue Department (Tehsildar)

Ownership Certificate Patta Chitta

State Town Planning ULB

Non encumbrance Certificate

Department of Town Planning (State Level)

Zoning Site Layout Approval

In accordance with Master PlanCity Dev

Plan

Urban Local Bodies (ULB)

In accordance with Building

Bye-Laws

LOI for Building Plan Approval

Central State - MoEF

Environmental Clearance

Central - AAI

Distance amp Height Clearance

Central - NMA

NOC for Heritage buildings

Central ndash Ministry of Defense

NOC for Defense Establishments

Central ndash Central Ground Water Authority

Bore well Registration Certificate

Central ndash Coastal Zone Mngt Authority

NOC for Coastal Zone

CentralState ndash NHAI PWD

Road Access

State ndash State Pollution Board

Consent to Establish Operate

DG Set Installation

CentralState ndash Forest Department (MoEFState Dept)

Tree Cutting Approval

StateLocal ndash Fire Service Dept

NOC for Fire

1

3a

Building Permit Development License

Completion Certificate

4

5

6

NOCs from State Depts

Applicant Developer

3b 3b

Occupancy Certificate

7

LOI for building plan approval obtainedAll NOCs obtained

Urban Local Bodies (ULB)

Developer submits Application for Zoning

Approval

3

Conversion of Land OR Land Use required

Yes

Department of Town Planning (State Level)

2

No

State Board

Water Connection

State Board

Sewerage Connection

State Private

Gas Connection

State Private company

Power Electricity Connection

MTNL Private Operator

Phone Connection

Developer submits

Application Building plan

Approval

Developer submits

Application for

Demarcation

Construction begins

Engineer handed

over plot

Commencement inspection

Completion inspection

Conversion of land or Change in Land Use

CATEGORY OF APPROVALS

DEPARTMENT

TYPE OF APPROVAL

IMPORTANT SEQUENCESTEPS

LEGEND

Developer issueshellipresulting in a lengthy and cumbersome process where

developer needs to approach multiple authorities

12

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 13: Test

13

Multiple factors add to the complex process leading to

uncertainties and delays in building approvals

lsquoLandrsquo is a state subject

resulting in multiple laws

rules and

regulations

Ambiguity and

discretion

Complex building

bye laws with

excessive control

Complexity and

coordination hurdles

with multiple depts

Rigid urban

planning processes

Lack of

transparency

and corruption

Lack of

institutional

clarity

Developer issues

World Bank Study estimates

bull If procedures are too

complicated or costly

builders tend to

proceed without a

permit

bull By some estimates

60ndash80 of building

projects in developing

economies are

undertaken without the

proper permits and

approval

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 14: Test

14

Whilst building laws are framed for safety and protection

of people and environment complexity of the procedure

results in uncertainty for consumers as well as developers

Is the location good with

adequate urban Infrastructure Does the developer

have clear land title

Have all statutory

planning and building

approvals been

received Is the paper work

contracts neutral and

not one-sided

What is the

actual carpet

area that I can

use

How can I know the status of the project and

approvals to estimate when construction may get

completed

Is the construction

quality and

specification as

promisedshown in

the apartment

brochure

Who do I approach for

delays and un-kept

promises by developers

Has the property received

the completion certificate

after necessary

inspections

1

2

3

4

5

6

7

8

9

Consumer issues

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 15: Test

15

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 16: Test

16

What have other countries to reform their systems Introducing or improving one-stop shops was among the most common

features of construction permitting reforms in the past 8 years

Source Doing Business 2013 ndash report by The World Bank and IFC

Source Doing Business 2013 ndash report by The World Bank and IFC

International best practices

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 17: Test

17

Recommendations and next steps

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 18: Test

18

6 Key Pillars

to streamline real estate project approvals

Bring

transparency

predictability

and

accountability

to protect

consumer

interest

1

Review

existing

systems

and

procedures

2

Single

Window or

lsquoOne-Stop

Shoprsquo

enabled by

IT

3

Reforms to

promote

affordable

and green

housing

4Share best

practices

and

incentivize

States

5

Key recommendations

Capacity

building in

private

and public

sector

6

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 19: Test

19

State wise compendium of all processes and timelines for

Transparency Predictability and Accountability

1

Composite

Application Form

Standard

checklists and

timelinesState wise

compendiumof process and

timelines

- what approvals

- where to go and

- by when to expect

Transparent

processesClarity of sequential

and parallel processes

Shift from

paperwork

and chaotic

processes

While Central Government can

facilitate these States will be

responsible for implementation

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 20: Test

20

Transparency Predictability and Accountability

With consumer interest at the heart of all reformshellip

Access to building approval

information and status

updates to avoid pre-sales of

projects without requisite

approvals

Strengthening regulatory

mechanisms to enforce

building standards ensure

quality

bull Uploading a list of all approved projects on

websites of local authority

bull Online information on the status of building

approval applications

bull Prompt notification of application approvals

bull Projects to be registered with (proposed) real

estate regulation authority

bull Enforcement of various state building laws

by local building authorities or privatethird party

inspectors

bull To provide consumer redress for building

defects

1 Contd

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 21: Test

21

1 Remove duplicity or unnecessary approvals and documentation

bull Eg dual process of getting conversion of land use approval from revenue

department as well as town planning local dept may be done away with

2 Simplify or improve process by clarity in rules and restrictions

bull There are opportunities to eliminate the need for NOC from certain

authorities such as NMA AAI if the restricted areas are marked as red

green yellow

3 Identify activities that can be automated

bull Eg online submission of building plans e-payments

4 Identify approvals that may be delegated

bull Eg planning approvals (zoning plan or change in land use) can be

delegated to local bodies after adequate capacity building

Review of systems and proceduresRemove redundancies simplify process automate or delegate powers

2

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 22: Test

22

Single Window or lsquoOne-Stop Shoprsquo enabled by IT

3

Na

tional S

erv

ices D

eliv

ery

Gate

wa

y (

NS

DG

)

bull Application Routingbull Processing (Scrutiny Approval)bull Communicationbull MIS Reporting

Department Portal

Approval authorities Department Users

IT Portal

acting as

lsquoSingle

Windowrsquo

will connect

various

departments

Developer Applicant

Developer submits all

information and

documents in a

Composite

Application Form

Source Graphic representation adapted from e-Biz being developed by DIPP

Responses status

updates from various

authorities returned to

the applicant

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 23: Test

23

With the help of IT enabled one-stop shop Hong Kong SAR China

and Singapore have achieved no 1 and no 2 ranks respectively for

lsquodealing with construction permitsrsquo

International best practices

3 Contd

Singapore

bull Many departments have been inter-connected

and manual procedures automated by

leveraging IT

bull Singapore takes 11 procedures and only 26

days to get a construction permit

Hong Kong

bull A One Stop Centre (OSC) was set up under the

administration of the Efficient Unit (EU)

bull Hong Kong takes only 6 procedures and 67

days to get a construction permit

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 24: Test

24

Taiwan China made the biggest improvement in the ease

of dealing with construction permits in the past year

Source Doing Business 2013 ndash report by The World Bank and IFC

By improving one-stop shop and introducing private inspections by building

inspectors 14 procedures were eliminated and 31 days were saved

Source Doing Business 2013 ndash report by

The World Bank and IFC

International best practices

3 Contd

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 25: Test

25

Reforms to promote for affordable and green housingthrough planningdevelopment policies and approval procedures

4

Clear lsquodefinition of affordable housingrsquo projects

Fast track

process

green

channel

with 60-90

day

clearance

window

Exemptions

from certain

NOCs or

lsquodeemed

approvalrsquo to

expedite supply

of affordable

housing

Nodal agency

to act as

lsquoSingle

windowrsquo and

coordinate all

approvals

from different

authorities

Green certified

projects to be

exempt from

environment

clearance

Revision of

building codes with

specific provisions

for lsquoaffordable

housingrsquo including

revised

densification (built-

up area) norms and

standardization of

building specification

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 26: Test

26

Share best practices and incentivize StatesRecognize and reward States and individuals to build competitive spirit

5

Nodal agency (Avas Vikas Limited) for

affordable housing Clear processes and

time limits

Consolidation of building laws (AP Building

Rules 2011) to make building stipulations

clear easy to comprehend user friendly

Rajasthan

Andhra

Pradesh

Hyderabad

Building plan automation has been a

mandatory reform under JNNURM which

has resulted in many cities developing

custom softwarewebsite for online building

approvals

Fast tracking G+4 houses by empowering

empanelled professionals (Green channel)

JNNURM

Cities

1 Many best practices exist which need to be shared

amongst States

2 States need to be

incentivized by

Central Govt to

reform procedures

3 States and

individuals could be

recognized through

National Awards

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 27: Test

27

Capacity building in private and public sectorTraining in-house staff outsourcing and empowering private sector

6

Architects bull EmpanelOutsource - to review and verify (self-certify) building plans

and zonallayout plans for building projects

Civil structural

engineers

bull EmpanelOutsource - to review application of building plans

construction as well as structural design requirements

Building surveyors

inspectors

bull Train or empanel - to review adherence to stipulated building codes

and bye laws including site inspection

Lawyers and law

firms

bull EmpanelOutsource - to verify legal documents including ownership

and non-encumbrance certificated

Other ULB Staff bull Train - ULB staff on procedures and IT

Urban Planners bull Train ndash ULB staff to be able to approve land-usezonal plans

India needs ~40000 urban planners for 7935 towns

only 616 planners annual supply from educational institutions

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 28: Test

28

Streamlining building

approvals

Leverage technology to connect

departments information flow

Examine approval processes

that can be removed

simplified or delegated

Expedite decision making and

clearance of long pending

applications

Introduce fast track channels

for projects that meet

lsquoaffordable housingrsquo criteria

Build capacity in local

bodies

Clear processes and timelines

for greater clarity and

predictability

Consolidate and streamline

building laws at national and

state level

1

2

3

4

5

6

7

Technology platform is being

identified

Review of processes

Composite Application Form

Facilitation window in ULB

Empowered committee

Ombudsman or Appellate Authority

Consider nodal agencies special

exemptions

Document processes checklists

timelines automaticdeemed

approval

Land surveyors urban

planners building inspectors

Summary

Summary

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 29: Test

29

Next steps

bull National workshop of all states to discuss

implementation ndash end November

bull Pilot implementation of the recommendations in one or

two states

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 30: Test

30

Your feedback and suggestionshellip

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 31: Test

31

Your feedback and suggestionshellip

1 Which approvals prove to be the biggest bottleneck

2 Areas where standardized documents and checklists would be most helpful

3 Identifying redundant processes (which can be eliminated) and areas of duplication

4 Suggestions to streamline approvals from MOEFAAINMA Defense Ministry

5 Should Environment Impact assessment under MOEF should be undertaken at the Master Plan

City Development plan or for every project approval stage What should be the minimum

threshold for which environment clearance should be required

6 What kind of incentives will be effective to motivate States to implement procedural reforms

7 Can the simplified norms of Andhra Pradesh be adopted in other states to incentivize housing

8 What special exemptions should be considered for affordable housing

9 What facilitiesfunctionalities should be made available in e-platform as a single window shop

for building approvals

10 Is there need for an appellate authority or ombudsman to hear appeals against building

approval related cases

11 Other suggestions on how building approvals can be facilitated and expedited

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom

Page 32: Test

32

Thank you

Dhanendra Kumar ChairmanCommittee on Streamlining Approval Procedures for Real Estate Projects (SAPREP)

and Former Chairman Competition Commission of India (CCI)

Email - dkumar1946gmailcom


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