Dealing with Construction Permits in
India
Listed below is detailed summary of the procedures, time and costs to build a warehouse —including obtaining necessary licenses and permits, completing required notifications and inspections and obtaining utility connections.
The information appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2011.
-
Building a warehouse
-
Estimated Warehouse Value:
INR 5,203,000
- City: Mumbai
| No. |
Procedure |
Time to Complete |
Associated Costs |
| 1 |
Submit application and design plans at Building Proposal office of BMC and pay scrutiny fee
Applicant submits application form with plans and all required documents, as prescribed by Section 373 of the BMC Act, at the Andhuri Building Proposal Office of the BMC. If all documents are in order and the file is complete, BuildCo can proceed to payment of the scrutiny fees. Fees are paid in the same building by cash or bank draft. Once the fees have been paid, the application file is forwarded to the concerned officer in the Building Proposal Department. Then the file is forwarded to the Survey Office, which will place their remarks on the application file and check the remarks from the Development Plan office (obtained during the design stage of the project). If the Survey Office is satisfied with their review, they will send back the application file to the Building Proposal Department with one week.
The cost for this procedure is INR 28 per square meter of the built up area/plot area, whichever is the maximum.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
INR 36,417
|
| 2 |
Receive site inspection from Building Proposal Office
A sub-engineer from the Building Proposal Office will conduct a site inspection within 3-4 days of receiving the file from the survey office. The date and time of the site inspection are arranged by BuildCo’s architect. BuildCo must be on-site when the inspection takes place.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
no charge
|
| 3 |
Obtain Intimation of Disapproval from the Building Proposal Office and pay fees
After the site inspection, the application file returns to the Building Proposal Office to receive an intimation of disapproval (authorization). The concerned Sub Engineer scrutinizes the proposal and forwards the report to the Assistant Engineer and Executive Engineer. The proposal is approved at the Executive Engineer’s level if no concessions are involved. There are 3 executive engineers in the main BMC office and 2 in the Andhuri office (the latter is the office considered for the purposes of this study).
Complete applications that do not require concessions (i.e. claiming of areas free of FSI as per provision in DCR 1991, deficiency in open spaces etc.) can be approved within a week. However, the majority of applications require some concessions and further scrutiny so must be forwarded to the competent authorities. This latter process may take 30 – 90 days to complete.
The intimation of disapproval is issued with a list of NOC’s which the applicant must obtain separately from various departments and government authorities. Final clearance to build will only be given once BuildCo obtains all NOC’s. The NOC’s assigned to the intimation of disapproval are case specific. For the purpose of this study, Doing Business has determined 7 basic NOC’s that are required of almost all projects:
1. Tree Authority
2. Storm Water and Drain Department
3. Sewerage Department
4. Hydraulic Department
5. Environmental Department (concerned with debris management)
6. Traffic and Coordination Department
7. CFO (fire clearance)
BuildCo’s architect must take the Intimation of Disapproval and the design plans to each clearance office separately. NOCs can be applied for simultaneously, but NOC offices are spread out so the submission for these 7 NOC’s is likely to take some time.
The cost for this procedure is INR 1 per square meter for Intimation of Disapproval + INR 2 per square meter (or a maximum of INR 45,000) as a deposit for debris clearance. The latter is returned after the completion of construction if the BMC has deemed all debris cleared.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
60 days
|
INR 1,301
|
| 4 |
Submit structural plans approved by a structural engineer to BMC
The Intimation of Disapproval (IOD) is only an approval of the civil plans. Review of the structural plans is done in parallel with the NOC process. No approval to this plan is required from Municipal Corporation but copies are required to be submitted. Time required for submitting theses structural plans is one day.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 5 |
Apply for NOC from Tree Authority
Due to stringent environmental regulations, BuildCo must receive clearance from the Tree Authority (set up under the Maharashtra (urban areas) Preservation of Trees Act, 1975. The Tree Authority commission only meets once a month. The Tree Authority must ascertain what trees (if any) will be cut down as a result of construction. If trees are to be cut down, BuildCo will have to plant trees to replace them.
Agency: Tree Authority, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 6 |
Receive inspection from Tree Authority
Inspectors from the Tree Authority visit the site to check if there are any trees located on the premises.
Agency: Tree Authority, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 7 |
Obtain NOC from Tree Authority
Agency: Tree Authority, Bombay Municipal Corporation
|
30 days
|
INR 4,500
|
| * 8 |
Request and obtain NOC from Storm Water and Drain Department
Agency: Storm Water and Drain Department, Bombay Municipal Corporation
|
7 days
|
no charge
|
| * 9 |
Request and obtain NOC from Sewerage Department
Agency: Sewerage Department, Bombay Municipal Corporation
|
7 days
|
INR 77,306
|
| * 10 |
Request and obtain NOC from Electric Department
BuildCo has to inform BEST of the project's power requirements along with copy of application submitted for building plan approval. BEST will assess whether an electrical substation up-grade required at this stage.
Agency: Electric Department, Bombay Municipal Corporation
|
7 days
|
no charge
|
| * 11 |
Request and obtain NOC from Environmental Department
Agency: Environmental Department, Bombay Municipal Corporation
|
7 days
|
no charge
|
| * 12 |
Request and obtain NOC from Traffic & Coordination Department
Agency: Traffic & Coordination Department, Bombay Municipal Corporation
|
7 days
|
no charge
|
| * 13 |
Request and obtain NOC from CFO
All commercial structures require a fire safety clearance.
Agency: Chief Fire Officer, Bombay Municipal Corporation
|
7 days
|
INR 13,006
|
| 14 |
Obtain Commencement Certificate from Building Proposal Office and pay Development Charges
On submission of all required NOCs mentioned in the IOD and on compliance of the IOD conditions, the applicant may submit request for the Commencement Certificate. The documents and NOC submitted by the applicants are verified by the staff and the necessary Commencement Certificate is approved. After payment of development charges and other applicable premium the Commencement Certificate is issued within 7 to 15 days.
The Cost for the CC is INR 200 per square meter of land + INR 500 per square meter of building area.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
10 days
|
INR 836,100
|
| 15 |
Request and receive inspection of plinth
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
no charge
|
| 16 |
Submit letter stating completion of building works to obtain an Occupancy Certificate and Certificate of Completion
BuildCo's architect must submit a formal letter stating that construction has been completed according to the standards set forth in the IOD and CC.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 17 |
Request and obtain completion NOC from Tree Authority
Agency: Tree Authority, Bombay Municipal Corporation
|
3 days
|
no charge
|
| * 18 |
Request and obtain completion NOC from Storm Water and Drain Department
Agency: Storm Water and Drain Department, Bombay Municipal Corporation
|
3 days
|
no charge
|
| * 19 |
Request and obtain completion NOC from Sewerage Department
Agency: Sewerage Department, Bombay Municipal Corporation
|
3 days
|
no charge
|
| * 20 |
Request and obtain completion NOC from Electric Department
Agency: Electric Department, Bombay Municipal Corporation
|
3 days
|
no charge
|
| * 21 |
Request and obtain completion NOC from Environmental Department
Agency: Environmental Department, Bombay Municipal Corporation
|
3 days
|
no charge
|
| * 22 |
Request and obtain completion NOC from Traffic & Coordination Department
Agency: Traffic & Coordination Department
|
3 days
|
no charge
|
| * 23 |
Request and obtain completion NOC from CFO
All commercial structures require fire safety clearance according to fire and safety rules and regulations stipulated in Development Control rule 1991 and national building Code. The fee for low-rise commercial buildings is INR 5 per square meter.
Agency: Chief Fire Officer, Bombay Municipal Corporation
|
3 days
|
INR 70,000
|
| 24 |
Request and receive competition inspection from BMC
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
no charge
|
| 25 |
Obtain Occupancy Certificate
The Occupancy Certificate allows BuildCo to occupy the building but is not considered a final document because BuildCo still requires the Certificate of Completion.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
1 day
|
no charge
|
| 26 |
Obtain Completion Certificate
The Completion Certificate is considered to be the ultimate document that BuildCo requires to fully occupy the building and connect to utilities.
Agency: Building Proposal Office, Bombay Municipal Corporation
|
30 days
|
no charge
|
| 27 |
Apply for permanent water connection
Agency: Water Department, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 28 |
Receive on-site inspection for connection to water by the Water Supply Department
An application for water connection is made to the Assistant Engineer of the Municipal Corporation. The Assistant Engineer of the Municipal Corporation makes the inspection. There are two inspections: one before the water connection is completed, and another after completion. The inspection would not take more than a day. An officer of the water department of the Municipal Corporation inspects the premises and prepares a report on the connection.
Agency: Water Department, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 29 |
Obtain permanent water connection
Fees for water connection include:
Water connection charges – INR 1060
Water meter – INR 150
Refundable security deposit towards water charges bills at INR 25 per 1,000 liter + 60% of sewerage charges for the requirement of the building
Agency: Water Department, Bombay Municipal Corporation
|
45 days
|
INR 1,210
|
| 30 |
Apply for permanent sewerage connection
BuildCo must visit the ward office and submit a written demand for a sewerage connection. The connection request must be submitted along with a copy of the building plans and the application request made to the Water Department.
Agency: Sewerage Department, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 31 |
Receive on-site inspection for connection to sewerage by Sewerage Department
A private contractor hired by BuildCo completes most of the inspections related to the connection, but the ward office will visit the site once to inspect the connection as well.
Agency: Sewerage Department, Bombay Municipal Corporation
|
1 day
|
no charge
|
| * 32 |
Obtain permanent sewerage connection
Agency: Sewerage Department, Bombay Municipal Corporation
|
30 days
|
INR 50,000
|
| * 33 |
Apply for telephone connection
An application for the telephone connection is submitted to the utility company along with a security deposit.
Agency: Mahanagar Telephone Nigam Ltd. (MTNL)
|
1 day
|
INR 500
|
| * 34 |
Receive on-site inspection and connection to telephone by the utility provider
Agency: Mahanagar Telephone Nigam Ltd. (MTNL)
|
2 days
|
no charge
|
* Takes place simultaneously with another procedure.