It is easier to procure construction permits in Delhi than in China: World Bank report

Under the registering property parameter, on a score of 100, China gets a score of 81, Mexico 60.2, Mumbai 49.6, Pakistan 48.6, Delhi 45.8 and Bangladesh 29.

In its 'Doing Business' 2020 report, the World Bank commended the reform efforts undertaken by the country "given the size of India's economy". The 10 areas measured in the report are: starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts, and resolving insolvency.

India is ranked 22nd when it comes to getting electricity, 154th for registering property, 25th for getting credit, 115th for paying taxes, 163rd for enforcing contracts and 52nd for resolving insolvency cases.

The Dealing with Construction permits parameter tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements.

Mumbai streamlined the process of obtaining a building permit and made it faster and less expensive to get a construction permit. The number of procedures in Mumbai were 19 and the time taken to grant permits was 98 days.

In Mumbai, it took 10 days to obtain latest property register card from the revenue department, 7 days to obtain latest authenticated city title survey, half a day to submit application and design plans and pay scrutiny fees, 21 days to obtain no objection certificates from various agencies, 1 day to hire licensed fire safety consultant to obtain certification for fire NOC, and 7 days to obtain excavation permission, half a day to obtain plinth commencement certificate and pay development charges, 1 day to request and receive inspection of plinth, 7 days to request and obtain commencement certificate, half a day to request for completion NoC, one day to receive inspection from sewerage department and 14 days to receive completion and occupancy certificate, the report said.

Delhi also streamlined the process, reduced the time and cost of obtaining construction permits, and improved building quality control by strengthening professional certification requirements.

The number of procedures were 11 and time taken was 113.5 days.

It took half a day to submit online common application form, 30 days to request and obtain release of building sanction plans, half a day to submit online notice of completion up to the plinth level online, 1 day to request and receive inspection at the plinth level, 30 to obtain completion permit and 1 day to request for water and sewer connection.

The parameter dealing with registering property examined steps, time and cost involved in registering property, assuming a standardised case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measured the quality of the land administration system in each economy.

The number of procedures for property registration in Mumbai were 9 and time taken to register property was 68 days. It took one day to pay stamp duty on the final sale deed through the designated bank and three days to execute final sale deed and submit documents to the local office of the sub-registrar, 23 days to apply to the land and survey office for mutation of title of the property and 30 days in case of applying for name change, the report said.

In case of Delhi, the number of procedures for property registration was 9 and time taken was 49 days. It takes 7 days to prepare the final sale deed with the purchaser’s lawyer in Delhi, 1 day to pay stamp duty on the final sale deed through e-stamp paper at the designated bank and three days to execute final sale deed and submit documents to the local office of the sub-registrar of assurances, 30 days to apply for mutation of the property title for tax purposes, the report said.

The country was 77th among 190 countries in the previous ranking.

In the report released on October 23, India figured among the top 10 performers on the list for the third time in a row. New Zealand continues to top the global ranking, with Singapore, Hong Kong right behind. Korea is in fifth place and the US on sixth.

This latest edition of the study documents reforms implemented in 10 areas of business activity in 190 economies over a 12-month period ending May 1, 2019.

India was ranked 142nd among 190 nations when Prime Minister Narendra Modi took office in 2014. Four years of reform pushed up India's rank to 100th in the 2018 report. It was 130th in 2017 and was ranked lower than Iran and Uganda. Last year, the country jumped 23 places to the 77th position on the back of reforms related to insolvency, taxation and other areas.

Apart from India, the other countries among the top 10 performers are China (31), Bahrain (43) Saudi Arabia (62), Jordan (75), Kuwait (83), Togo (97), Tajikistan (106), Pakistan (108) and Nigeria (131).

vandana.ramnani@nw18.com