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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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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