Ease of Doing Business
 
Creating an Enabling Framework for Stimulating Investments in Manufacturing Actions implemented and initiated by State Government

A meeting was conducted on “ Ease of Doing Business” on 31st March 2015 where various actionable points were discussed for simplifying the various departmental processes and approvals .
 
A list of 98 Points have been drafted as listed hereunder and the online modules for the same shall be operational shortly.
Sl. Actions against Recommendations    
Starting a Business
1 Publish a comprehensive checklist for all requirements for NOCs, licences, registrations, environment clearances and land and building related approvals and certificates
2 Prescribe time-lines for each service delivery including time-lines for seeking clarification/rejection (along with reasons)
3 Implementation and enforce single window clearance institutional mechanism for starting up of business with all relevant officers (with authority to approve applications) of various departments housed in a single office for providing approvals and clearances
4 All clearances and approvals of incentives within existing policy framework to be given by the single window clearance institution.
5 Make the single window clearance mechanism online to allow for registration, application, tracking and monitoring of application.
6 Single registration and ID for all state taxes
7 Ensure registration with VAT and profession tax is completed within one day for non-sensitive goods and prior inspection should be mandatory for sensitive goods only
8 Process of registration under shops and establishment Acts to be made online and real-time
9 Combine all application forms to require to start a business into one online combined application form (CAF)
10 Implement legislation to ensure timely service delivery
11 Provisions for deemed approvals for applications on which suitable action is not taken within prescribed time limits, along with penalty on officers failing to dispose of cases in time
12 Create a facilitation mechanism for filling of forms
Land and Building
Availability of Land
13 Develop a framework to earmark land parcels with kind of industry that can be set up on such land
14 Develop land bank for ready availability of land for industry
15 Develop a comprehensive digitalized GIS enabled land records data base in a time bound manner- preferably with information on available infrastructure like water, power, sewerage, highways/road connectivity etc.
16 Develop a time bound and transparent land allotment procedures
17 Assign timelines for processing of "Conversion of land" and "Change in land use" applications by State and local bodies
Registering Property
18 Develop standard/model sale deeds and make the format available online
19 Allow online registration of properties/land with online payment
20 Introduce online E Stamp facilities across Sub-registrar Offices (SROs) in the state
21 Ensure data is digitized at sub-registrar’s office, land records and municipal records for property tax
22 Integrate data at sub-registrar’s office, land records and municipal records to facilitate property-wise mapping of transactions
23 Integrate mutation process with registration of property
24 Shift from existing system of registration to Torrens system over the long run. Draw up a detailed route map for implementation of these recommendations
Construction Permits
25 Develop an online Common Application Form for all applications for obtaining construction permit (municipal authority, tree authority, storm water and drain department, sewerage department, electric department, traffic and coordination department, and chief fire officer)
26 Develop an online Common application form for all completion and occupancy related applications.
27 Allow auto-approval based on third party certification of structural design and architectural drawings by recognized structural engineers and architects respectively. Develop mechanism for penalty to be enforced on the engineer/architect in case there is a violation on the code.
28 Empanel third parties for site inspection and certifications
29 Promote risk based approvals and inspections; No requirement for inspection for low risk structures (e.g. buildings in approved industrial/commercial areas)
30 Allow online payment of all fees such as layout approval fees etc.
31 Ensure a single joint site inspection is done by the authorities wherein NOC is conveyed to municipal authority directly and accordingly approval/disapproval relating to construction permit is conveyed by the municipal authority
32 Ensure there is a single completion-cum-occupancy certificate instead of separate completion and occupancy certification
33 Ensure there is no requirement of pre-application NOC from zonal planner, tax department and affidavit, and requirement of giving commencement notice
34 Ensure that clear timelines (both customer facing and internal to dept.) are defined for obtaining construction permits. Timelines (related to setting up of business) with provision for deemed approval, should be prominently displayed on the application form itself. An Appellate Authority to be nominated for applicant to reach out to for any delay in processing or any complaints/redressal. In addition, the state must clearly identify responsibility of officers for failure to give approvals in time. Also, the state must clearly identify responsibility of business entities for loss caused to others due to accidents (through a common liability law)
Environment Compliances
35 For registration/obtaining clearance, categorize industry into Green, amber, Red to define inspection requirements. Green- no inspection, Amber- Self-certification/third party certification with defined penalties, Red-compulsory verification and time-bound
36 No requirement for environment clearances in case of green industries
37 Develop and implement electronic consent management systems for all environment/pollution related approvals
38 Develop and implement a common application form catering to various environment related acts with a checklist for all the prerequisites
39 Develop standard operating procedures for approval and inspection processes related to Consent to Operate (CTO)
40 Promote self-declaration and self-certification along with increase in penalties in case of violation of regulations
41 Synchronize multiple inspections under various regulations and promote risk based inspections
42 Supplement inspection activity of pollution control boards with 3rd party Auditors/inspectors
43 Explore options for increasing time of renewal of the CTO supplemented by annual declarations
44 Remove requirement of pollution control certificates as pre requisites for providing connection for electricity
45 Develop legislations to include environment protection and responsibility as a mandatory part of corporate Social Responsibility
46 For compliance, ensure that there is a single return requirement and a single online register is maintained. Allow inspections by third party and conduct random inspections based on computerized risk assessment
Labour Compliances
47 Develop a portal for providing online services for various labour law compliances-registration/renewal
48 Develop standardized formats for minimizing the number of returns required to be submitted for compliance
49 Recognize third party service providers to provide certifications and conduct inspection
50 Document standard operating procedures for registration, renewal and inspection process and share through the department’s website
51 Establish labour arbitration courts in industry clusters to expedite dispute resolutions
52 Introduce procedural reforms such as self-certification, risk-based inspections etc to simplify the approval process and reduce costs. • Self-certification/ Self-declaration enacted. • Simplification of approval process expected to be completed by 31st May.
53 Exempt small scale industry units from furnishing returns and maintaining registers
54 Synchronize multiple inspections under various labor laws
55 Consolidate and rationalize all state specific labor laws to reduce multiple laws and bring consistency in the definitions and coverage-Industrial Relations, Governing Wages; Social security, laws governing working conditions & Welfare
Infrastructure Related Utilities
56 Create a online common application form for obtaining infrastructure related utilities (electricity, water, sewage, gas)
57 Online submission of application for obtaining infrastructure related utilities
58 Ensure that clear timelines (both customer facing and internal to dept. are defined for obtaining infrastructure related utilities (Electricity, water, sewage, gas) Timelines (related to setting up of business) with provision for deemed approval, should be prominently displayed on the application form itself. An Appellate Authority to be nominated for applicant to reach out to for any delay in processing or any complaints/redressal. In addition the state must clearly identify responsibility of officers for failure to give approvals in time. Also, the state must clearly identify responsibility of business entities for loss caused to others due to accidents (through a common liability law)
59 Streamline and develop the application and approval process to eliminate duplication of formalities
Getting Electricity
60 Create a online common application form for obtaining infrastructure related utilities (electricity, water sewage gas)
61 Online submission of application for obtaining infrastructure related utilities
62 Date of inspection (for providing electricity connection) should be fixed within 7 days of application and communicated at the time of applying
63 Ensure that there is fixed cost estimate based on load required with no processing charges
64 Ensure that time for all permissions (for obtaining electricity connection) is capped at 15 days from date of application
65 Ensure that outside installation (for obtaining electricity connection) i to be completed within 21 days of approval of application
66 Allow third party inspection for internal installations
Finance and Tax
67 Allow online payment of all state levies and taxes
68 Allow filing of online returns annually and promote acceptance of returns at service centres
69 Provide for simple e-filing, assistance for e-filing at service centres
70 Simply VAT refund by making payment directly into firm’s account within 60 days
71 Allow advance ruling for tax for State level taxes on the lines of income Tax Act
72 Develop common application form for Value Added Tax, Central Sales Tax, entry Tax, Luxury Tax
73 Introduce and mandate e-Registration and do away with manual registration
74 Phase out of static check posts and substitute with random checking through mobile squads
75 Promote risk based inspection/audit or on certain information
76 Set up toll-free helpline providing basic services assisting small tax payers in preparing and filing returns
77 Set up toll-free helpline providing basic services assisting small tax payers in preparing and filing returns
78 Allow advance ruling for tax for State level taxes on the lines of Income Tax Act
Inspection Reforms
79 Form a Central Inspection Agency responsible for inspections with a network of local branches that report directly to the central agency to synchronize multiple inspections
80 Synchronize multiple inspections under various regulations and risk based regulations
81 Document and publish the inspection forms and templates by the agency
82 Develop an online system for generation of list of units to be inspected and allocation of inspectors to conduct the inspections
83 Allow third party inspections and introduce self-certification for the low risk units and past records, that is, frequency of defaults, consistency in compliance etc.
8 Furnish final report within 72 hours after the inspection to the businesses
85 Conduct surprise inspections based on the complaints with specific permission from head of the inspectorate.
86 Build capacity of the inspectors and inspectorates by introducing training for enhancing the skill set. Introduce cross training of the inspectors to optimize use of resources
Enforcing Contracts
87 Provide standardized contract templates to reduce ambiguity
88 Set up specialized courts or commercial divisions in existing courts to resolve commercial disputes
89 Implement case management Systems in courts to reduce delays
90 Initiate process of e-filing of proceedings and e-services of court proceedings in districts and High Courts
91 Appoint more judges
92 Limit number of adjournments for the cases to avoid long delay in judgements
93 Fix time limits for disposing of the commercial cases
94 Mandate mediation/arbitration for commercial cases less than INR 10 lakhs
Exiting Business
95 Ensure DRTs adhere to disposal timelines of 180 days under Recovery of Debts Due to Banks and financial Institutions Act (RDDBFIA) especially in high value cases
96 Adhere to requirements of Section 19(5A) of the RDDBFIA which restricts adjournments by DRTs to a maximum of 3 or 6
9 Establish timelines for Official liquidators to settle dues
98 Develop a single window approval system for state level issues to ensure easy exit of business
     
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