Ahmedabad: In a significant move for real estate and urban development, the Gujarat Government is planning reforms in land use and construction approvals following central government recommendations. These changes aim to deregulate approvals and simplify construction norms, especially in mixed-use developments.
Demand-Driven Land Use and Interim Master Plans
Under the proposed reforms, Gujarat may adopt a demand-driven land use model based on the principle of “everything is permitted unless prohibited.” This approach will allow most activities in residential, commercial, and industrial zones, with only a negative list of prohibited activities.
The state is also considering allowing construction during the preparation of an area’s master plan, based on an interim or draft master plan to be completed within three months. If the interim plan is not finalised in time, construction may continue as per the old master plan, removing the need for case-by-case approvals.
High-Level Committee Working on Reforms
A group of senior IAS officers, chaired by the Chief Secretary of Gujarat, is working on implementing the reforms. Officers from departments including revenue, urban development, environment, and power are contributing to the effort, which aligns with the Centre’s Compliance Reduction and Deregulation Phase II recommendations.
State government sources highlighted that these reforms could also allow mixed-use building development, with relevant amendments to building bylaws under consideration.
Industry Response and Economic Impact
Tejas Joshi, President of CREDAI Gujarat, welcomed the proposed reforms, saying:
“It will improve ease of doing business and ensure faster development. Gujarat is a state leading in reforms. If such reforms are implemented, national real estate companies will enter Gujarat. With preparations for the Commonwealth Games underway, these reforms will help in a big way.”
The proposed changes are expected to accelerate real estate development, attract investors, and streamline urban planning, positioning Gujarat as a model for regulatory reform in India.
Potential Benefits
- Faster approvals for residential, commercial, and industrial projects
- Streamlined construction during master plan preparation
- Encouragement for mixed-use developments
- Increased national and international investment in real estate
- Boost to infrastructure and urban development ahead of major events like the Commonwealth Games
These reforms reflect Gujarat’s ongoing commitment to ease of doing business and smart urban development.
Read also: Gujarat Government to Deregulate NA Certificate Requirement for Projects Under TP Schemes
