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Ease of Doing Business in

India

India Download Profile (2183.1KB, pdf)
Region South Asia
Income Category Lower middle income
Population 1,311,050,527
GNI Per Capita (US$) 1,590
City covered Mumbai, Delhi

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 130 131 up
1
55.27 53.93 down
1.34
Starting a Business 155 151 down
4
74.31 73.74 up
0.57
Dealing with Construction Permits 185 184 down
1
32.83 32.83
-
Getting Electricity 26 51 up
25
85.09 79.76 up
5.33
Registering Property 138 140 up
2
50.00 49.97 up
0.03
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 13 10 down
3
73.33 73.33
-
Paying Taxes 172 172
-
46.58 43.17 up
3.41
Trading across Borders 143 144 up
1
57.61 56.45 up
1.16
Enforcing Contracts 172 178 up
6
35.19 32.41 up
2.78
Resolving Insolvency 136 135 down
1
32.75 32.59 up
0.16

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points): 35.06

DB 2016 DTF (% points): 35.06

Change in DTF (% points): 0.00

STANDARDIZED WAREHOUSE
Estimated value of warehouse: INR 5,114,479
City: Mumbai
Indicator Mumbai South Asia OECD high income
Procedures (number) info_outline 42.0 16.4 12.1
Time (days) info_outline 164.0 196.4 152.1
Cost (% of warehouse value) info_outline 25.0 16.7 1.6
Building quality control index (0-15) info_outline 12.0 8.7 11.3
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Obtain an extract of the Property Register Card (P.R. Card) from the Revenue Department

    Agency: Revenue Department

    The Property Register Card (P.R. Card) is a record showing the ownership along with the land area of the Holdings held by the Revenue Department about the Building Land/Plot. This P.R. Card is a mandatory document to be provided to the MCGM when applying for a Building Permit. The Application for the P.R. Card is made to the City Survey Officer (An Officer of the Revenue Department) by affixing a Rs.10 Court Fee Stamp.
    17 days INR 60
    2

    Submit application and design plans and pay scrutiny fee

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    BuildCo submits application form with plans and all required documents, as prescribed by Section 337 of the BMC Act, at the sub-engineer of the concerned locality within the Eastern suburbs of Mumbai The sub-engineer reviews the plans and makes sure that the property card is mutated in the name of th owner of the land and signs on the plans. If all documents are in order and the file is complete, BuildCo can proceed to pay the scrutiny fees 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 Office. Then the file is forwarded to the Survey Office, which will remark 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 Office within one week.
    1 day INR 85,840
    3

    Receive site inspection from Building Proposal Office

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    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.
    1 day no charge
    4

    Apply for no-objection certificate (NOC) from Tree Authority

    Agency: Tree Authority, Municipal Corporation of Greater Mumbai

    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.
    1 day no charge
    5

    Apply for no-objection certificate (NOC) from Storm Water and Drain Department

    Agency: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    6

    Apply for no-objection certificate (NOC) from Sewerage Department

    Agency: Sewerage Department, Municipal Corporation of Greater Mumbai

    1 day INR 77,306
    7

    Apply for no-objection certificate (NOC )from the Hydraulic Engineer Department (water supply)

    Agency: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    8

    Receive inspection from Tree Authority

    Agency: Tree Authority, Municipal Corporation of Greater Mumbai

    Inspectors from the Tree Authority visit the site to check if there are any trees located on the premises.
    1 day no charge
    9

    Receive inspection from Storm Water and Drain Department

    Agency: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    10

    Receive inspection from Sewerage Department

    Agency: Sewerage Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    11

    Receive inspection from the Hydraulic Engineer Department (water supply)

    Agency: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    12

    Obtain NOC from Tree Authority

    Agency: Tree Authority, Municipal Corporation of Greater Mumbai

    Upon receipt of application for NOC, the Tree Authority will send a Tree Officer to personally inspect the trees on the premise. The Tree Officer then submits a report to the Tree Authority within a period of 30 days from the receipt of the application.
    30 days INR 4,500
    * 13

    Obtain NOC from the Storm Water and Drain Department

    Agency: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai

    7 days no charge
    * 14

    Obtain NOC from Sewerage Department

    Agency: Sewerage Department, Municipal Corporation of Greater Mumbai

    7 days no charge
    * 15

    Obtain NOC from Hydraulic Engineer Department (water supply)

    Agency: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai

    7 days no charge
    * 16

    Request and obtain NOC from Electric Department

    Agency: Brihanmumbai Electric Supply and Transport (BEST)

    BuildCo has to inform Brihanmumbai Electric Supply and Transport (BEST) of the project's power requirements along with a copy of the application submitted for building plan approval. BEST will assess whether an electrical substation upgrade is required at this stage.
    7 days no charge
    * 17

    Request and obtain NOC from Roads & Traffic Department

    Agency: Roads & Traffic Department, Municipal Corporation of Greater Mumbai

    7 days no charge
    * 18

    Request and obtain NOC from Chief Fire Office

    Agency: Chief Fire Office, Municipal Corporation of Greater Mumbai

    All commercial structures require a fire safety clearance.
    7 days INR 13,006
    19

    Obtain Intimation of Disapproval and pay fees

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    After the site inspection, the application file returns to the Building Proposal Office to receive an intimation of disapproval (authorization). The concerned Sub Engineer reviews 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 Municipal Corporation of Greater Mumbai (MCGM) 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 they 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:
    • Tree Authority
    • Storm Water and Drain Department
    • Sewerage Department
    • Hydraulic Department
    • Environmental Department (concerned with debris management)
    • Traffic and Coordination Department
    • 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.
    29 days INR 42,000
    20

    Obtain plinth commencement certificate from sub-engineer and pay development charges

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    Upon submission of all required NOCs mentioned in the IOD and on compliance of the IOD conditions, the applicant may submit a 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 commencement certificate is valid for four years in the aggregate, but must be renewed before the expiry of one year from the date it was issued if the work has not yet commenced. Such renewal shall be for three consecutive terms of one year each, after which the proposal would need to re-obtain development permission.

    10 days INR 998,512
    * 21

    Submit Notice of commencement and completion to Labour Inspector

    Agency: Labour Inspector

    According to Rule 239 of The Building and other Construction Workers’ (Regulation of Employment and Conditions of Service) Act, 1996, BuildCo must submit a notice of commencement of building and indicate at the same time the probable end of construction, at least 30 days prior to the commencement of construction works.
    1 day no charge
    22

    Request and receive inspection of plinth

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    1 day no charge
    23

    Request and obtain further commencement certificate

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    The building permit is done in 2 steps. First, BuildCo must obtain the permit up to the plinth level. Once the plinth level has been completed, there is an inspection to verify that is in compliance with approved plans. It is only after this inspection has been done and approval obtained that the BuildCo can move on with the construction and start the superstructure of the warehouse. But in order to do so, it is necessary to obtain a permit to start building the superstructure.
    7 days no charge
    24

    Request completion NOC from the Storm Water and Drain Department

    Agency: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    * 25

    Request completion NOC from the Sewerage Department

    Agency: Sewerage Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    * 26

    Apply for water connection from Hydraulic Engineer

    Agency: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai

    BuildCo must visit the ward office and submit a written request for a water and sewerage connection. The connection request must be submitted along with a copy of the building plans.
    1 day no charge
    * 27

    Request completion NOC from Roads & Traffic Department

    Agency: Roads & Traffic Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    * 28

    Request completion NOC from Chief Fire Office

    Agency: Chief Fire Office, Municipal Corporation of Greater Mumbai

    1 day no charge
    * 29

    Receive inspection from Storm Water and Drain Department

    Agency: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai

    The Assistant Engineer of the Municipal Corporation makes the inspection. There are two inspections: one before the connections are completed and another after completion. The inspection would not take more than a day. An officer of the Municipal Corporation inspects the premises and prepares a report on the connection.
    1 day no charge
    * 30

    Receive inspection from Sewerage Department

    Agency: Sewerage Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    31

    Obtain water connection from Hydraulic Engineer

    Agency: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai

    Fees for water connection include:
    • Water connection charges: INR 1,060.00
    • Water meter: INR 150.00
    • Refundable security deposit towards water charges bills at INR 25.00 per 1,000 liter + 60% of sewerage charges for the requirement of the building

    Sewer fees are INR 50,000
    3 days INR 51,210
    * 32

    Receive inspection from Roads & Traffic Department

    Agency: Roads &Traffic Department, Municipal Corporation of Greater Mumbai

    1 day no charge
    * 33

    Receive inspection from Chief Fire Office

    Agency: Chief Fire Office, Municipal Corporation of Greater Mumbai

    1 day no charge
    34

    Obtain completion NOC from Storm Water and Drain Department

    Agency: Storm Water and Drain Department, Municipal Corporation of Greater Mumbai

    3 days no charge
    * 35

    Obtain completion NOC from Sewerage Department

    Agency: Sewerage Department, Municipal Corporation of Greater Mumbai

    3 days no charge
    * 36

    Obtain the completion NOC from Roads & Traffic Department

    Agency: Roads & Traffic Department, Municipal Corporation of Greater Mumbai

    3 days no charge
    * 37

    Obtain the completion NOC from Chief Fire Office

    Agency: Chief Fire Office, Municipal Corporation of Greater Mumbai

    All commercial structures require fire safety clearance according to fire and safety rules and regulations stipulated in Development Control Rules 1991 and the National Building Code. The fee for low-rise commercial buildings is INR 5.00 per sq. m.

    This NOC may be requested and obtained online, but it still takes several days to receive.

    3 days INR 6,503
    38

    Submit letter stating completion of building works to obtain an occupancy certificate and certificate of completion

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    The owner, through a licensed plumber, shall furnish a drainage completion certificate to the Commissioner to certify that the works were completed according to approved drainage plans. The licensed surveyor, engineer, or architect who has supervised the construction shall furnish a building completion certificate to the Commissioner works to certify that the building has not deviated from the approval plans. This shall be accompanied by three sets of plans of the completed development. Following the reception of both certificates of completion the Commissioner shall inspect the work, and after satisfying himself that there is no deviation from the approved plans, issue a certificate of acceptance of the completion of the work.
    1 day no charge
    39

    Receive final inspection from Building Proposal Office

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    1 day no charge
    40

    Obtain occupancy certificate from Building Proposal Office (sub-engineer)

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    Once the occupancy certificate has been issued, the final plans are stamped by the Building Proposal Office, the final plans are stamped by the Building Proposal Office and one copy is forwarded to the Hydraulic Engineer (Water) Department.
    14 days no charge
    41

    Obtain final NOC from Hydraulic Engineer (Water) Department

    Agency: Hydraulic Engineer Department, Municipal Corporation of Greater Mumbai

    14 days no charge
    42

    Obtain completion certificate

    Agency: Building Proposal Office, Municipal Corporation of Greater Mumbai

    14 days no charge

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Building quality control index (0-15) 12.0
    Quality of building regulations index (0-2) 2.0
    How accessible are building laws and regulations in your economy? (0-1) Available online; Free of charge. 1.0
    Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1) List of required documents; Fees to be paid; Required preapprovals. 1.0
    Quality control before construction index (0-1) 1.0
    Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1) Licensed architect; Licensed engineer. 1.0
    Quality control during construction index (0-3) 2.0
    What types of inspections (if any) are required by law to be carried out during construction? (0-2) Inspections by in-house engineer; Inspections at various phases. 1.0
    Do legally mandated inspections occur in practice during construction? (0-1) Mandatory inspections are always done in practice. 1.0
    Quality control after construction index (0-3) 3.0
    Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2) Yes, final inspection is done by government agency; Yes, in-house engineer submits report for final inspection. 2.0
    Do legally mandated final inspections occur in practice? (0-1) Final inspection always occurs in practice. 1.0
    Liability and insurance regimes index (0-2) 0.0
    Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)  . 0.0
    Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1) No party is required by law to obtain insurance . 0.0
    Professional certifications index (0-4) 4.0
    What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2) Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer. 2.0
    What are the qualification requirements for the professional who supervises the construction on the ground? (0-2) Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. 2.0