Two days before ‘Magnificent MP’ investors’ summit, the Kamal Nath cabinet on Tuesday approved a new real estate policy that promises to ease business for builders, cut red tape and make realty attractive to investors. And it will no longer be mandatory to build homes for economically weaker sections.
“It is for the first time in the state that the entire proceedings of property dealings have been simplified through a real estate policy,” minister for urban administration Jaivardhan Singh said. The target is to attract more investment in the sector.
‘Real Estate Policy 2019’ will streamline the permission process for builders to cut red-tapism, said officials.
“Till now, a builder needed to submit 27 documents while seeking government permission. In the new policy, we have reduced it to just five,” Singh told mediapersons after the cabinet meeting.
The only documents needed now are the application, plot purchase details, copy of registration, building plan and affidavit. It is no longer mandatory to build EWS (economically-weaker section) homes in a project.
All e-vehicles to get 100% exemption from MV tax
It is no longer mandatory to build EWS (economically-weaker section) homes in a project. Construction of EWS is optional as builders may deposit a fixed amount with the government, which will get added to Mukhya Mantri Awas Yojana to construct homes for the poor.
“To encourage investment, we are providing an option to builders to either construct EWS homes or deposit a fee with Mukhya Mantri Awas Yojana,” the minister said. Asked if this decision will affect construction of homes for poor, he said, “The state government is building 6 lakh new EWS homes in the next four years.”
“Permission was different for urban and rural colonizers so far. That is being done away with. It will be common now. Builders will be given a licence for five years with which they can construct properties in urban and rural areas,” the minister explained. Under ‘one-state-one registration’, a builder can start projects anywhere in the state within these five years.
For citizens building smaller houses, permission will be given instantly. “If NOC (no-objection certificate) is not issued within 30 days, then it will be accepted that the certificate has been issued. Government has also ended the previous provision of a minimum requirement of 2-hectare plot for colonizing and development by builders. This will decrease the problem of illegal colonies,” Singh argued.
In another major decision, the council of ministers approved the Electric Vehicle Policy to encourage non-petroleum automobiles to decrease pollution in major urban areas. “The state government will purchase 2,200 buses in the next five years, which will ply inter-city and intra-city,” Singh said. “Public transportation system will be transformed radically with e-vehicles. State government will provide Rs 150 crore as subsidy for purchase of e-rickshaws and eautos,” he added.
E-vehicles will be given 100% exemption from motor vehicle tax and registration tax during purchase, a state release said. There is also the provision of exemption from parking fee in places run by urban bodies for the first five years.
