The Gujarat government is actively considering a significant policy change that could streamline development projects across the state. According to top government sources, authorities are examining a proposal to deregulate the obligatory requirement of securing a Non-Agriculture (NA) certificate from the revenue department for various types of projects.
Major Policy Shift Under Consideration
This potential reform would apply to residential, commercial, mixed-use, and industrial projects located within areas covered under Town Planning (TP) schemes. The current process of obtaining NA certificates, which are issued by collectorates and district development offices, has been identified as one of the most significant bottlenecks causing substantial delays in project implementation throughout Gujarat.
High-Level Meeting Reveals Government Intent
During a crucial top-level meeting held in Gandhinagar on Thursday, attended by officials from the Government of India and secretaries from all state government departments, Gujarat authorities assured the Union government that they are likely to repeal the clause requiring NA permission in areas under both draft and finalized TP schemes across the state.
"Gujarat government assured GoI that it is likely to deregulate the clause of mandatorily seeking an NA certification in areas under town planning schemes. This will apply to both draft TP schemes as well as finalized TP schemes," revealed a senior government source familiar with the discussions.
Impact on Development Projects
Government sources highlighted that numerous key projects have faced adverse impacts due to delays in processing NA applications. These include industrial proposals, real estate developments, hospital constructions, commercial complexes, and mixed-use projects that are crucial for the state's economic growth and infrastructure development.
"The delays invariably escalate project costs and end up negatively impacting overall development in the state," sources emphasized, noting that in some extreme cases, applicants have reportedly waited for two years or more to obtain their NA certificates.
Addressing Systemic Issues
The mandatory NA certification requirement has not only caused project delays but has also created opportunities for corruption at the district administration level. A recent case that brought this issue to light involved the arrest of former Surendranagar district collector Rajendrakumar Patel and others in connection with an alleged bribery racket for speedy processing of land-use change applications.
Following investigations by the Enforcement Directorate, which led to these arrests, the state government suspended the former collector, highlighting the systemic problems associated with the current NA certification process.
Potential Benefits of Deregulation
If implemented, this policy change could bring several significant benefits:
- Reduced Project Timelines: Elimination of NA certificate requirements could substantially decrease waiting periods for project approvals
- Cost Savings: Faster approvals would help control escalating project costs caused by bureaucratic delays
- Improved Ease of Doing Business: Streamlined processes would enhance Gujarat's investment climate
- Reduced Corruption Opportunities: Removing discretionary powers could minimize potential for bribery and unethical practices
- Accelerated Development: Faster project implementation would boost overall economic growth and infrastructure development
The proposed deregulation represents a significant step toward simplifying regulatory processes and creating a more business-friendly environment in Gujarat, potentially setting a precedent for other states to follow in reforming their land-use and project approval mechanisms.
