Even as shopping malls and high-rises sprout in every nook and corner of major cities, it is time India leveled the numerous speed-breakers at the municipal level. For, this is where the brakes are usually applied on projects waiting to get construction clearances and building licences, leading to delays.
Calling for a one-stop at the municipal level for project clearances, a recent World Bank report, Doing Business 2008, says while overall India has gone up 12 ranks in the ease of doing business, more needs to be done to encourage investments in property development.
The report mentions the case of Maharashtra, where the state government plans to introduce single-window clearances for construction projects in the financial capital of Mumbai. As of now, approving a construction permit in Mumbai takes about five months compared with only one month in Hyderabad and Jaipur. The time to register property, too, varies. It takes 35 days in Hyderabad and 155 days in Kolkata.
Overall, however, the World Bank has lauded the efforts made by India in easing the business climate, especially by introducing technological reforms. Customs declarations and fees can now be paid online much before the cargo arrives on ports. While it took 26 days in 2006 to fulfill all administrative requirements, it now takes only 18 days.
However, there is still wide disparity in the performance of cities. For instance, the time to get a business licence ranges from 159 days in Bhubaneswar in Orissa to 522 days in Ranchi, Jharkhand. Both the states are rich in mineral resources and have high investment potential.