The Confederation of Real Estate Developers Associations of India has called for adoption of a single window and online approval system to cut short time for clearances and save on costs due to delays.
It feels that the Real Estate Bill needs to be modified as in the present form it may increase the cost of the housing by about 30 per cent.
The real estate body is hosting a two-day conclave in New Delhi during December 13-14.
C. Shekar Reddy, National President Credai, in a statement said‚ "the main concerns of the real estate developers in the country are--the rising price of land, labour and inputs, high burden of taxation, high cost of funding due to lopsided funding by banks, stunted cash flows, delays in securing no objection certificate and other clearances and approvals besides the outdated floor space index (FSI) Norms".
He felt that if the Government brings about changes, the sector will create huge supply of homes and a competitive market, there-by bringing down housing prices.
According to Reddy, the key to this change should be by adoption of 'Single-window and Online Approval System' to facilitate this growth. Delays in project approvals translate into a cost escalation of 35-40 per cent in the construction costs. The customers can also benefit with a saving of 15-25 per cent merely by cutting down the delays in the approval processes.
He emphasised the need to ensure delays do not take place at the approval stage and wanted the governments to institute the 'Single Window – Online Approval Mechanism’ as a mandatory reform in the proposal for Rajiv Awas Yojna instead of an optional reform and get it implemented at the earliest.'
The Credai urged the Government to do away with the Floor Space Index (FSI) concept, take the approval process online and reduce tax burden on the industry.
Reiterating that the real estate industry has a tax burden of 30-40 per cent, he said this has to come down to less than 15 per cent.
He said that the industry is paralysed by multiple taxes, resulting in cost escalation and misery for the sector.