Relief in infrastructure charges in Delhi, now NOC will be available on 25% payment, stalled projects will get speed up.
There is news of great relief for the common consumers and developing agencies of Delhi. Delhi Jal Board has approved an important and practical policy reform related to Infrastructure Charge (IFC). For a long time, high IFC rates had been a major hurdle for construction and redevelopment projects in the capital, due to which many projects were stuck. Meanwhile, DJB under the leadership of Water Minister Parvesh Sahib Singh has implemented an interim but effective solution. This decision is expected to provide relief to lakhs of people whose projects were stalled till now due to high charges.
25 percent payment for IFC
Under this decision, consumers and developers will now get great convenience. For a long time, many construction and redevelopment projects in the capital were stuck due to high IFC rates. According to the new system, now only 25% of the total IFC will have to be paid at the time of building plan approval. Only after this payment, a provisional NOC (No Objection Certificate) will be issued. The remaining amount will be adjusted later at the time of final approval of water connection, as per the rates applicable at that time. This decision will provide immediate relief to lakhs of people whose projects till now have high charges. The reasons were halted.
In the last few years, a major change was made in the calculation system of IFC. Earlier the fee was decided on the occupancy based model, later it was changed to the floor area based model. Due to this change, in many cases the IFC fee increased by 5 to 10 times, which caused huge financial burden on the common citizens. Due to increased charges, many property owners were not able to get NOC, due to which building approvals were getting delayed and many construction and redevelopment projects were stalled.
Speaking on the decision, Water Minister Parvesh Sahib Singh said, “We were continuously receiving complaints that the high IFC was stopping people from building their houses. This was neither fair for the citizens nor cost-effective for the system. We decided to fix it from a practical and humanitarian point of view.”
He further said, “We are making the system people-friendly and not forcing people to struggle according to the system. Now construction can be started with just 25% payment and fair adjustment of the remaining amount will be done later.” Pravesh Sahib Singh said that this reform is in line with Narendra Modi’s ‘Ease of Doing Business’ vision. He said the government aims to simplify processes, remove bottlenecks and empower citizens and developers to move forward without delay.
What will be its benefits?
• Immediate approval of stalled projects
• Faster approvals and faster construction work
• Major reduction in initial financial burden
• Transparency and flexibility in the system
• Properties up to 200 square meters exempt from IFC
• Even larger plots benefit from the revised and rationalized structure.
It is estimated that after the implementation of the new system, the total IFC liability may be reduced by 50% to 70% in many cases, which will significantly reduce the cost burden on common citizens. Responding to this, Water Minister Parvesh Sahib Singh said, “Our aim is not to increase revenue, but to create an equitable and balanced system. Only when people are able to pay easily, the system will be strengthened.” He further said that the government aims to make home construction in Delhi simple, fast and transparent, so that citizens and developers get the opportunity to move forward without unnecessary hurdles.
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