Chennai’s Online Building Approval System Cuts Processing Time by Two-Thirds

The Chennai real estate market has seen significant boosts with the Online Building Planning Permission System developed by the Chennai Metropolitan Development Authority (CMDA). The building plans approval has come down dramatically under this new system.

It used to take as long as 180 days to obtain planning permission before the launch of the system in 2021. However, statistics available with CMDA reflect a gradual trend toward that goal. In 2022, the average days taken for processing had slipped to 157 days, further decreasing to 107 days in 2023. As of November 2024, it takes only 64 days-the reduction of two-thirds compared with the pre-online period.

The thrust of OBPPS is driven home by the overall number of approvals in place. The year 2021 had approvals for 70 high-rise buildings, 426 non-high-rise buildings, and 197 layouts. For the year 2024, the figure has grown humongous to include approvals for 104 high-rise buildings, 597 non-high-rise buildings, and 269 layouts. In total, it increased 45% overall from what was first put in place.

Launched in May 2022, the OBPPS has streamlined the planning approval process to be more efficient, transparent, and convenient. It is presently integrated with several urban and rural bodies such as the Greater Chennai Corporation, Directorate of Municipal Administration, Directorate of Town Panchayats, and Rural Development and Panchayat Raj Department so that there is proper coordination in allowing building permissions.

According to a CMDA official, the online system is now connected with 19 departments responsible for issuing No Objection Certificates (NOCs). If an NOC is not provided within 30 days of application, it is treated as a deemed approval, preventing unnecessary delays. The layout permission module was also introduced in November 2023 to streamline the process further.

CREDAI reports a strong residential market in Chennai. Unsold inventory is at its lowest in seven years, and, therefore, property prices rise 6.5% due to an increase in demand and rising construction costs.

OBPPS improves efficiency and demand remains high; thus, the real estate sector of Chennai is still witnessing growth.