PERMITSFOR CONSTRUCTION OF BUILDINGS ACCOUNT FOR HALF OF CONSTRUCTION COST: WORLD BANK OF REPORT

PERMITSFOR CONSTRUCTION OF BUILDINGS ACCOUNT FOR HALF OF CONSTRUCTION COST: WORLD BANK OF REPORT                                                                                           

        According to a report published by theWorld Bank, in Greater Mumbai, the various Permissions for construction works of the Buildings account for almost half the cost of construction.  It is further reported that “the cost of construction permit in Greater Mumbai is 46.05 percent of the cost of construction.” The report also highlights that it takes 27 steps and 162 days to obtain a construction permit.  For almost each of these steps, the developer or the land owner has to pay fees for obtaining construction permits.

While the report has already prompted the State Government to re-engineer and simplify the process of obtaining the construction permit, the Brihan Mumbai Municipal Corporation is yet to take steps to bring down the cost of obtaining such permits.

Earlier, the Chief Minister of Maharashtra State declared that his Government had plans to extend the regime of allotting additional floor space index-ratio of built up area to total plot area, which exists in the suburbs of Mumbai to Thane and other areas in the Mumbai Metropolitan Region.  Builders present at the meeting when the announcement was made sought to decrease the premium which is charged on the basis of prevalent ready reckoner rates.

The Anti Corruption Bureau Chief had earlier referred to rampant corruption while issuing building permits in Mumbai.

Acting on the Chief Minister’s directives, the Brihan Mumbai Municipal Corporation had issued fresh guidelines to “simplify the construction permit process and reduce the time by eliminating certain procedures”.  It also allowedself-certification for declarations pertaining to property tax, pest control and debris removal at the under-construction site; while allowing third party certification for internal road layout, internal sewerage systems, parking layouts and vehicle movement within the plot, storm water drain and water requirements.

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