Track2Realty-Agencies: In a move aimed at providing a major fillip to the construction sector, the Centre is likely to come up with a ‘single window’ system for the country’s real estate sector soon, Union Minister for Housing and Urban Poverty alleviation (HUPA) Ajay Maken said in New Delhi on Sunday, March 24.
Maken’s remarks, made at the National Editors Conference held at the Vigyan Bhavan, are pretty significant since under the existing system it is not uncommon for real estate projects to be held up for up to one year or more before the necessary sanction is accorded.
“The ministry (HUPA) had set up a Committee under the Chairmanship of Dhanendra Kumar for Streamlining Approval Procedures for Real Estate Projects (SAPREP).”
The Committee had since submitted its report and the Ministry was in the process of formulating a ‘single window’ system for the clearance of real estate projects throughout the country, which was expected to bring down the average approval time from 196 days to 45-60 days,” the Minister said.
According to him, the process involved the submission of a single composite application form (CAF), which would ensure simultaneous clearance from the municipal corporations, state governments and the Central agencies.
Maken said that the Ministry would incorporate the recommendations of the SAPREP Committee as one of the mandatory reforms to be carried out by the states, if they wanted to avail the funds provided under the ‘Rajiv Awas Yojana’.
It was also revealed that the HUPA would mobilise a whopping Rs 60,000 crore to finance its ambitious housing scheme for the low income group (LIG) and the economically weak sections (EWS).
And a credit risk guarantee fund trust (CRGFT) partnering the National Housing Bank (NHB), HUDCO and other financial institutions has been set up for the purpose and the steps initiated by the ministry would significantly help to bridge the gap between shelter and housing, the Minister added.
On the Urban Housing Fund announced by Union Finance Minister P Chidambaram, Maken said that a separate fund of Rs 2,000 crores, to be administered by the National Housing Bank, had been envisaged to support the financing and credit to the affordable housing sector.
It will benefit the LIG and the EWS sections, which were not getting the benefits under the current priority sector lending limit of Rs 25 lakh. HUPA had decided to limit the loan amount to `8lakh and the cost of the dwelling units to Rs 12 to Rs 15lakh.
