PANAJI
The State government is betting heavily on the construction and real estate to rev up the business climate and has amended at least three laws in the recently concluded monsoon session of the Goa legislative assembly which directly benefit players in the sector.
Two of the laws the government amended shortens by half the waiting time for individual builders and real estate firms to obtain construction licences and occupancy certificates from civic officials.
A third law tweaked by the government gives direct financial benefit to players in the industry in as much as they will be permitted easier terms to pay infrastructure tax instead of paying it in a lump sum at the commencement of construction.
Town and Country Planning Minister Vishwajit Rane piloted the Bill which amended the Goa Tax on Infrastructure Act. Once it comes into force when notified after it receives the gubernatorial nod, builders and construction firms will get to pay the infrastructure tax in two equal instalments, one at the start of construction and the other on receiving the completion certificate, instead of the earlier regime where the entire tax had to be paid upfront at the beginning.
Industry sources said, the easing of terms to pay infrastructure tax will be a short in the arm, especially for the smaller players who execute eight to twenty unit projects as the financial burden to start on a project will be reduced.
"For larger players the benefit of the easier terms may not add up to much but it does impact initial investment costs significantly," a prominent Panaji-based architect who requested anonymity said.
On reforming the licencing regimes for the construction and real estate sector, the government has amended the municipal and panchayat laws to cut short the time period for issuance of construction licences and occupancy certificates.
While Rane, who also holds the Urban Development portfolio, piloted the amendments to the Goa Municipalities Act, 1968 and the City Corporation of Panaji Act, 2002, the amendment to the Goa Panchayati Raj Act, 1994, to incorporate in the statute faster processing of applications for construction licences and occupancy certificates was piloted by Panchayat Minister Mauvin Godinho.
Once in force these amendments mandate chief officers in the case of municipalities, commissioner in the case of the CCP and secretaries in panchayats to issue or reject construction licences within 15 days of receipt of the application. Earlier the law mandated this wait period to be 30 days.
Another amendment to the law governing stamp duty on property mortgage deeds and trust deeds could also impact the real estate sector with direct benefits to buyers availing housing loans. Revenue Minister Atanasio Monserrate piloted the bill that amended the Indian Stamp Act, 1899 (2 of 1899), as in force in Goa. It reduced the stamp duty financial burden on mortgagers when mortgaging property without giving possession.
