NOIDA: The real estate sector has jumped on the Modi wave hoping for a revival in fortunes of the under-performing industry. The real estate body of Noida has sent a proposal to Narendra Modi to implement a single window clearance system for new projects to bring in greater transparency.
Sources said that BJP president Rajnath Singh and leader Anurag Thakur had met real estate groups and assured a revamp of the system which would cater to both homebuyers and the industry.
CREDAI member, Anil Mithas, said the proposal highlights the multiplicity of authorities which not only increases production cost but also becomes the main reason for delay in completion of projects.
"It takes a minimum of one year to get all necessary clearances for a developer in UP. We have great expectations from Modi that he will address our issues," said Mithas, managing director, Unnati Fortune group.
Developers say there is an urgent need to reform the approval process as state and central agencies act individually without any correspondence between them, which delays the project from kicking off. Developers claim that the current multi-agency processing of projects adds 40% to the overall cost of the project.
Amit Gupta, managing director of Orris Infrastructure and Assocham member, said the real estate sector directly or indirectly employs lakhs of people and its demands cannot be ignored any longer. "If a smooth and efficient system is put in place, the industry will be able to reduce prices up to 25% and double the sales," Gupta claimed.
The vice chairman of Lotus Greens, P Sahel, concurred with Gupta and said that buyers will be able to get affordable projects if the government implements such a scheme. He said the government will also benefit from a healthy real estate industry as it will lead to an increase in state and central government's revenue by 100% and increase the nation's GDP by as much as 1.5%.