Move to Ease Con­struc­tion Per­mit Norms

The Economic Times - - Economy: Macro, Micro & More - Ruchika.Chi­tra­van­shi @times­group.com

New Delhi: The gov­ern­ment is seek­ing help from ar­chi­tects to re­design its con­struc­tion per­mits sys­tem af­ter the World Bank in its lat­est rank­ing on ease of do­ing busi­ness placed In­dia among the bot­tom five of the 190 coun­tries on this count.

In its re­port, the mul­ti­lat­eral lender said In­dia has not man­aged to shift on­line its con­struc­tion per­mits sys­tem which en­tails more than 29 sets of pro­ce­dures.

The Depart­ment of In­dus­trial Pol­icy and Pro­mo­tion (DIPP) has asked more than 100 ar­chi­tects to point out the prob­lem ar­eas and is in­form­ing them of the steps be­ing taken by the gov­ern­ment to ease pro­cesses, of­fi­cials said. “We have taken a lot of steps to digi­tise but it does not seem to be reach­ing the ground,” a se­nior of­fi­cial said.

The min­istry of ur­ban de­vel­op­ment has said that it will bring down the num­ber of pro­ce­dures to eight for Delhi and Mum­bai. The World Bank’s rank­ing takes into ac­count the re­forms done in these two cities only.

Be­sides con­struc­tion per­mits In­dia is ranked poorly at 172 for pay­ing taxes and en­forc­ing con­tracts, and 155 for start­ing a busi­ness.

DIPP has started col­lect­ing feedback on all the ten pa­ram­e­ters of the World Bank study as part of ef­forts to im­prove In­dia’s rank next year. In­dia man­aged to move up just one spot in the rank­ing, com­pared to its per­for­mance last year, to 130. The gov­ern­ment said many of the re­forms done in the coun­try were not counted by World Bank.

In­dia is aim­ing for a quan­tum leap of 80 spots next year to rank among the world’s top 50 coun­tries for ease of do­ing busi­ness.

The ten cri­te­ria for the rank­ing in­clude get­ting elec­tric­ity, en­forc­ing con­tracts, start­ing busi­ness, reg­is­ter­ing prop­erty, re­solv­ing in­sol­vency, con­struc­tion per­mits, get­ting credit, pro­tect­ing mi­nor­ity in­vestors, pay­ing taxes and trade across bor­ders. Mean­while, DIPP has come up with a 294-point ac­tion agenda for the state ranks this year, fo­cus­ing on spe­cific sec­toral re­forms in ar­eas in­clud­ing trans­port, state ex­cise and li­cences for health, drug, pharma and fer­til­izer in­dus­try.

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