The state government is concerned at the evasion of royalty on mining of sand and other building materials.
The state government is concerned at the evasion of royalty on mining of sand and other building materials. Therefore, the minister of state for industry, mines and minerals, Saurabh Patel, sought the cooperation of developers to plug the loopholes in the system, while speaking at a function organised on the closing day of the three-day GIHED Property Show in the city.
The president of Gujarat Pradesh Congress Committee, Siddharth Patel; MP and member of National Urban Reform Committee, Dr Kirit Solanki, and leader of opposition in AMC Surendra Baxi were also present at the function.
The government is planning to recover royalty on sand and stone chips at the time of approval of building plans by municipal corporations, said Patel. These materials are mainly used in road construction and housing sector. In road sector, there is clarity about the quantum of material used, while in housing there is no such clarity. Therefore, the estimated royalty may be recovered from developers, which will generate more revenue for the state, he said.
Talking about the steps taken by the state government to boost housing sector, Patel said the government planned to spend Rs7,000 crore on urban development in the remaining three years of the 11th five-year plan. The 150 nagarpalikas would get around Rs1,000 crore, while six municipal corporations of the state would get the rest. He also said that the slowdown was over and demand in the housing sector would go up drastically in the near future.
Siddharth Patel, president of Gujarat Pradesh Congress Committee, criticised the state government for lack of a proper approach towards the building industry. "The state government's approach towards the industry lacks perspective. The government should have changed the bye-laws and policy, taking into consideration the mega city status of Ahmedabad." He also said that due to importance of technology in this sector, the building industry should be termed as an infrastructure industry. "There is a need for increased transparency in the industry. So, there must be some sort of guideline for super built concept, which could be followed by all developers," he said.
The developers, on their part, requested the state government to reduce the time taken for zoning, so that the industry could benefit. At present, it takes around 10 years for the zoning of some areas, which could be reduced, said Rushabh Patel, honorary secretary of GIHED.
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