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Sitaram Kunte's letter bears fruit, warehouse construction to become easy

The move is aimed at improving the ease of doing business in the state.

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Considering BMC chief Sitaram Kunte's letter, the state government on Tuesday decided to grant exemption in development charges for construction of go-downs and warehouses. The move is aimed at improving the ease of doing business in the state.

The state cabinet on Tuesday gave its nod for amendment in Section 124 F (2) of the Maharashtra Regional and Town Planning Act, 1966 which deals with the cost of construction permit. dna in an exclusive story published on March 9, 2015, had for the first time brought to the fore a letter written by Kunte in this regard.

Addressing a press conference after the cabinet meeting, chief minister Devendra Fadnavis on Tuesday informed that Mumbai would play an important role in bringing the country's rank among the first fifty when it comes to the Ease in Doing Business indicator in the World Bank report. The World Bank report had identified construction permit as the delaying factor, which resulted in dragging down India's rank to 142 among the 189 economies in the Ease in Doing Business indicator.

Kunte in his letter to state government suggested an amendment to Section 124 F (2). The World Bank report on Doing Business 2015, was measured on 10 indicators and it mentioned that cost of obtaining construction permit for a ground plus two-storey warehouse comes to 46 per cent of the actual cost of construction. Kunte had pointed out that reduction in cost as well as time period would improve India's ranking in the league of nations.

The study by the BMC appointed consultant has said that the number of procedures, if brought down to 11 from current 27, and the time period — if brought down to 60 days from current 162, along with reduction of cost of permit to 12 per cent from 46 per cent, it would result in improving India's rank and it can go up to 30.

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