CII submits a detailed list of 62 stalled projects: 17 Projects Cleared by Project Management Group

CII appreciates the Government’s commitment to rapid implementation of large infrastructure projects.

CII has learnt that 17 large infrastructure projects have been cleared in the last two weeks by the Project Management Group (PMG) recently set up in the Cabinet Secretariat to fast-track infrastructure projects. PMG has initiated an innovative and effective monitoring mechanism deploying e-governance to track and review the progress of the large infrastructure projects. In consultation with concerned companies, CII had prepared a detailed list of 62 infrastructure projects of over Rs 1,000 crores each and submitted it to the PMG. 

New Code to Grant Existing Buildings Green Rating

 With the launch of the new code existing non-residential buildings could be considered for conversion into green buildings

CII’s Indian Green Building Council (IGBC) has launched an initiative to bring existing buildings under the green fold.

A new code has been developed for the purpose. Existing non-residential buildings including office buildings, IT parks, Business Process Outsourcing companies, shopping malls, hotels, hospitals, airports and banks could be considered for conversion into green buildings.

Green practices in building construction and maintenance have been gaining wider acceptance in the wake of increased awareness of energy conservation. 

Real Estate Regulation and Development Bill

The Cabinet nod for the proposed Real Estate Regulation and Development Bill, which has been pending since 2007, is a welcome move.

CII has always favoured setting of an institutional mechanism to improve the image of this crucial Sector for Indian economy and setting up of a Regulator is a step in the right direction. Though we must also keep in mind that multiple Acts and Rules exist for protection of consumer interests for any deficient services in any sector and hence it needs to be ensured that the proposed Real Estate Regulatory Authority (RERA) does not end up merely replicating various functional roles.

While it is also laudatory that the proposed Bill calls for launching of projects only after getting all statutory clearances, it should equally be the responsibility of the proposed Regulator to ensure that the competent authorities make available their approvals within specified time limits.

Another provision in the proposed Bill makes it mandatory for a developer to maintain a separate bank account for every project to ensure that the money raised for one project is not diverted. Retaining amounts realized from allottees and placing in Banks would affect the financial cash flows for projects and even more so for metropolitan cities where land cost component is significant and already paid by promoter. If at all such an account is to be maintained, the limit should be on a lower side and include payment of interest and EMI pertaining to loans availed for construction of the said project.

It is also heartening to note that all the Real Estate Agents are required to be registered with the proposed Authority, as it will help detect money trail and curb money laundering.

At the same time, provision in the Bill pertaining to return of money to customer with interest in case of delay is well meant, it should also be borne in mind that any regulatory frame work should cover all stake holders- promoter, customer [allottee] and competent Authority and all obligations should be evenly distributed.