Govt. Eases Environment Clearance Norms for builders

June 25, 2007	(Be the first to rate this story!)  Loading ...
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The government is drafting easier environmental clearance guidelines for real estate developers that would reduce the time required for getting the plans approved.

The new single window system for environment clearances will relax the procedures for developers who have to separate clearances from the state and the Centre. This would help builders to get their building plans approved within two-three months.

The environment guidelines have been set by the Ministries of Urban Development and Environment and the Planning Commission.

The new norms are likely to cut the cost of operation for developers. Also, tough norms for environment clearance have been one of the major obstacles for foreign direct investments (FDI) in real estate.

Many countries eliminate the need to have environment clearance for developers to set up real estate projects. The examples are the US and UK where builders just need to give banks the guarantee to the state.

However, to replicate the US model in India is highly difficult but the government is taking up initiatives to come up with similar modifications in the existing regulations.

Indian real estate has seen the FDI worth $3.5 billion. The government could go up to significantly if futile regulatory obstacles are stamped out.  The Indian government paved way for 100% FDI in real estate in 2005. The move was decided to spur investment in the vital infrastructure sector. Indian realty attracted $3 billion in 2005-06.

News Published Under:   Real Estate India |

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