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Ease of biz: Govt pushes states to implement over 300 proposals

Will be assessed next year on recommendations, have to take action on all these by December.

Written by Shruti Srivastava | New Delhi |
September 28, 2015 2:05:06 am

Even as it awaits the 2016 Doing Business ranking by the World Bank due next month, the Centre has asked states to implement over 300 additional recommendations including earmarking industrial land parcels with specific criteria for setting up industries, making available a model sale deed format for property registration, and carrying out joint site inspection by various authorities responsible for granting construction permits to cut down the time taken.

The department of industrial policy and promotion (DIPP) has asked states to implement 334 recommendations by December on the basis of which they will be ranked in 2016. Earlier this month, the DIPP had published a report prepared by the World Bank along with KPMG, ranking states on 98 parameters wherein Gujarat was ranked as India’s best place for conducting business. The initiative is an attempt by the DIPP to rope in states for improving the overall performance of India in the World Bank’s report, which ranks nations.

“The states will be assessed next year on the basis of these recommendations.

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They have to take action on all these recommendations by December. We are organising a workshop in October to help states in implementing them and by November the order will be out,” an official told The Indian Express.

Further, the department will also start a dashboard, a virtual platform, wherein all states will be organised alphabetically and will move up the ladder as and when they take steps to implement the measures advised by the Centre.

“We will also open a window for one week a month where the industry will be given an opportunity to give their comments on the steps taken by states. After taking their views we will instruct states accordingly,” the official added.

The focus of these suggestions are on streamlining the various permits given by state governments, single-window for various clearances, no-objection certificates for activities like tree felling and fire departments, digitisation of government records, making tax system and construction permits simple and online.

“States should implement an online common application form for all required clearances and approvals in the single window for getting construction permits. They should also make public a comprehensive checklist of all required pre and post establishment NoC, licenses, registrations etc required for setting up business. They should also design and implement an online system from where investors can take all the information required for establishing the industrial unit,” according to the suggestions sent by the DIPP.

After coming to power the government led by Prime Minister Narendra Modi had set a target of improving India’s national ranking from an abysmal 142 of 189 to the top 50. Last year, India slipped two spots in the report, and was ranked lower than Brazil, Russia, China and South Africa chiefly on account of delays in approvals for starting a business, tax payments, getting bank loans and property registration.

Emphasising on access to information and transparency in government approvals, the DIPP has also asked states to issue a single ID for all state taxes such as entertainment tax, CST and luxury tax; delegate the decision-making powers to single-window bureau to grant required approvals; ensure change of land use is provided as a service through the online single-window system along with information on land banks for industrial use; and allow for auto-renewal of consent to establish.

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