Lok Sabha Question No. 2870 (UNSTARRED), answered on 2017-03-20
Subject: Grey Area in Ease of Doing Business
Ministry: COMMERCE AND INDUSTRY
Asked by: CHANDRA PRAKASH JOSHI

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 2870. TO BE ANSWERED ON MONDAY, THE  20 TH  MARCH, 2017.

## GREY AREA IN EASE OF DOING BUSINESS

## 2870.  SHRI CHANDRA PRAKASH JOSHI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज् यवव द्यग ं ्री

- (a) whether the Government has taken cognizance of the report of the Parliamentary standing committee that issue of construction permits is  a  grey area in the 'Ease of Doing Busines' scenario and there  is an urgent need for introduction of fast track building plan approval systems;
- (b) if so, the action taken by the  Government in this regard and if not, the reasons therefor; and
- (c) whether  the  Government  also  proposes  to  introduce  risk  based  classification system based on the structural requirements and intended usage and if so, the details thereof?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि(

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): Yes, Madam. The Department Related Parliamentary Standing Committee on Commerce on Ease of Doing Business has observed that the  issue  of  construction  permits  is  a  grey  area  in  the  'Ease  of  Doing Business'  scenario  and  there  is  an  urgent  need  for  introduction  of  fast track building plan approval systems at least for low risk buildings.
- (b) & (c): The following action has been taken in respect of the two cities (Delhi and Mumbai)  which  are  covered  under  the  World  Bank's  Doing  Business Report.
- I) Delhi Development  Authority has notified the Unified Building Byelaws on 22nd March, 2016, which allows for risk-based inspection for different  building  types.  Provision  has  been made  in bye-laws of  Delhi for deemed approval of  building  plan of 105  sq. mts.  and  height  upto  15  mts.  for  residential  and  approval  by

architects/ engineers for residential buildings between 105 -500 sq. mts. and height below 15 mts. Risk based classification  has  been  done  for  all  categories  for  fast  tracking building plan approval, inspection and issuance of occupancy-cumcompletion  certificate.  The  entire  building  approval  process  has been  made  online  so that the building plan applications are submitted  online,  building  fees  and  other  charges  are  deposited online and after due scrutiny, the approvals are conveyed online.

Buildings/warehouses/godowns etc. have been classified into four categories under  risk based  classification as very low, low, moderate and high.

For fast-tracking the approval of construction permits, the time limit has been fixed in the Building Bye-laws as under:

- 10 days

- [ ] - 20 days

- [ ] - 30 days

- II) Municipal  Corporation  of  Greater  Mumbai  has  implemented  a  risk based assessment framework with risk parameters such as building height,  location,  type  of  activity,  etc.  in  order  to  enable  fast  track approval of low risk buildings in Mumbai. As per the framework, low risk buildings are allowed self-certification for building plan approval.

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