Govt. guidelines boost realty sector


The Union government’s new guidelines to ease construction permission norms is likely to boost the realty sector in Pune.

The Urban development (UD) ministry will streamline the process by year-end and issue notifications to enable municipal corporations to provide approvals to building projects in a time-bound manner. The government intends to bring these changes to give a push to its initiatives like Housing for All, Smart Cities Mission and AMRUT.

Earlier, Union urban development minister Venkaiah Naidu had urged the Ministry of Environment to provide a simplified check list for ensuring compliance by urban local bodies. Naidu said the environment ministry and the state government should give complete construction clearance powers to local self-governing bodies. He said the focus should be on revenue generation and urban reforms to meet the aspirations of new urbanites.

“By December, the Centre will roll out new reforms to facilitate rapid development of the urban realty sector. Local self-governing bodies will have to fall in line and upgrade their functioning, especially the procedure in building permission department. The Centre will take serious cognizance of the delay in issuing construction permissions and also local policies which prove hurdle for investment in cities,” said a senior state government official.

The Pune’s realty sector, however, expects more from the government. Shantilal Kataria, president CREDAI Pune metro, said, “The government needs to take more practical steps. Overseas rupee funding for affordable housing must be allowed. There is a need to reduce risk weightage on affordable housing. The RBI has cut the repo rate by 1.25%. This benefit should be directly passed on to consumers. One has to keep in mind that RBI has not changed the CRR rate which has been kept at 4%. The repo rate of 6.75% is the lowest in last 5 years. This rate cut is a progressive step and will not only help the housing sector, but also the economy. Now it is the turn of banks to reduce the interest rates and help increase the purchase power of consumers,” he said.

Municipal commissioner Kunal Kumar said, “Good investment climate, ease of doing business, investors-friendly policies and employment opportunities make a city competitive. A provision of higher floor space index (FSI) is a part of the reforms. Mumbai has it and the civic administration there sells it. If you want extra FSI, you have to pay for it,” said Kumar.

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