The Modi government has got down to working out a `things-to-do' list for states to make it easier for companies to do business. A detailed checklist being readied by the department of industrial policy and promotion (DIPP) focuses on issues as diverse as uniform sale deeds and standard contract templates to online registration of property and a common form for getting approvals related to construction of buildings. Another key focus area is reducing inspections and merging labour-related checks into one, as has been done for several laws at the Centre. In addition, states are being asked to ensure availability of land banks to help investors implement projects. In recent years, land acquisition has not only become cumbersome for the industry but sharp rise in compensation have resulted in several projects being put on hold.
While the Centre's recommendations are not binding on the states, sources said that a rush to attract investment will help in getting chief ministers to order business process reengineering. When Modi launched the Make in India mission in October, ease of doing business was a key theme of his agenda and he had set a target of moving India from the 142nd rank to top 50 to help boost investments, especially in the manufacturing sector and create jobs.
India ranks low in the global sweepstakes given cumbersome procedures, which is not just time consuming, but also complicated and requires investors to take several approvals.
As a result, focus of the fresh exercise is to have online platforms for several areas. For instance, DIPP is proposing to states that all formalities, including filing applications, for building and construction permits should be done online. Similarly, there is a move to make processes like property registration, compliance of labour laws and payment of state levies and taxes, available online.
In several areas, central government has already moved with the labour ministry, putting in place a system of random inspections and online filing. Similarly, the revenue department has initiated measures to make life simpler, including issuing PAN within two days of incorporation of a company, 24x7 cusotms clearance at 17 airports and 18 ports.
Ministries, depts asked to set up investment facilitation centres
Meanwhile, taking the theme “Invest in India“ a notch higher, the government has asked all ministries and departments to create investment facilitation centres that will actively work towards attracting investments. This is part of Modi's ambitious Make in India scheme. In a letter, DIPP secretary Amitabh Kant has said that the facilitation centres must be “equipped and empowered'' to channelize investments in the country. The letter dated December 19 shot off to all ministries said, “An investment facilitation cell has been created to guide and handhold investors during the various phases of business life cycle. This provides necessary information on a vast range of subjects such as policies of various ministries and state governments, various incentive schemes and opportunities available to make it convenient for investors to take decisions.''
