Gujarat Set to Transform Urban Planning with Major Real Estate Reforms
In a significant move poised to reshape real estate and urban development in Gujarat, the state government is actively considering sweeping reforms in land and construction approvals. Following the recent deregulation of non-agricultural (NA) zones, this new initiative aims to streamline processes and accelerate growth across town planning areas.
Central Recommendations Drive State-Level Changes
Under recommendations from the central government, Gujarat is exploring the adoption of a demand-driven land use approach and a 'permitted until prohibited' principle for mixed-use development. This could fundamentally alter how construction projects are approved, allowing activities to proceed even while master plans are still in preparation.
After a high-level meeting in Gandhinagar with central officials, a committee of senior IAS officers, chaired by the chief secretary, is working on implementing these reforms. The group includes representatives from key departments such as revenue, urban development, environment, and power.
Key Proposals: Simplified Zones and Negative Lists
State government sources reveal that the proposal involves creating very few zones—residential, commercial, and industrial—where all demand-driven development activities would be allowed, subject only to a small 'negative list' of prohibited items. This embodies the spirit of 'everything is permitted unless prohibited,' with each zone clearly specifying banned activities while permitting all others by default.
The same principle could extend to mixed-use building development, potentially requiring amendments to existing building bylaws. This shift is expected to reduce bureaucratic hurdles and foster more flexible urban growth.
Interim Master Plans to Prevent Delays
Traditionally, master plans take years to prepare and often halt all permissions during their development. To address this, the central government has recommended that Gujarat introduce interim or draft master plans within three months. Construction could then proceed based on these interim plans for all activities by default, rather than on a case-by-case basis.
If an interim plan is not enacted within the specified period, construction activities would continue under the old master plan, ensuring no unnecessary delays in development projects.
Industry Response: Boosting Ease of Doing Business
Credai-Gujarat president Tejas Joshi welcomed the proposed reforms, stating that they will enhance ease of doing business and promote faster development. He emphasized Gujarat's leadership in reform initiatives and predicted that such changes could attract national real estate companies to the state.
With preparations for the Commonwealth Games underway, these reforms are seen as crucial for supporting large-scale infrastructure and urban projects, positioning Gujarat as a model for progressive urban planning in India.
