Govt enlists measures to improve ease of doing business

The government said it has taken a series of steps to improve ease of doing business that include having a timeline for clearance of applications, de-licensing the manufacturing of many defence products and introduction of e-Biz project for single window clearance.

"The emphasis has been on simplification and rationalisation of the existing rules and introduction of information technology to make governance more efficient, effective, simple and user-friendly," the Department of Industrial Policy and Promotion said.

The eBiz-project being implemented will create an investor centric hub-and-spoke based online single window model for providing clearances and filing compliances, DIPP said, adding that it will provide a single platform to avail business and investment related services.

"This project will result in radical improvements in ease of doing business by reducing time, efforts and costs taken in obtaining clearances and ensuring compliances. Integration with Central Government services is being done on highest priority," DIPP said.

In order to improve the regulatory business environment, all departments and state governments have been requested to take measures on priority basis such as mandatory filing of all returns on-line through a unified form; no inspection should be undertaken without the approval of the Head of the Department and for all non-risk, non-hazardous businesses a system of self-certification should be introduced.

Besides, it has introduced online registration of employers with Employees' Provident Fund Organisation (EPFO) and Employees State Insurance Corporation (ESIC).

The government has also done away with the requirement of affidavit from the applicants of the defence industry.

Further, a maximum timeline of 12 weeks has been finalised by Ministry of Home Affairs for grant of security clearance on industrial licence applications.

Now partial commencement of production will be treated as commencement of production of all the items included in the licence, a move which will facilitate the entrepreneurs from hardship of repeatedly coming to the administrative ministries for extension of validity of industrial license.

DIPP said guidelines have been issued to streamline the processing of applications for grant of extension of validity of industrial license.

"Defence products’ list for industrial licensing has been issued, wherein large number of parts/components, castings/forgings etc. have been excluded from the purview of industrial licensing," it added.

Process of applying for industrial licence and Industrial Entrepreneur Memorandum has been made online and this service is now available to entrepreneurs on 24x7 basis at the eBiz website, without human interface.

"This will lead to ease of filing applications and online payment of service charges and ensure that no entrepreneur has to come to the Ministry to file his/her application or make payment," the DIPP said.

According to a World Bank report, India has slipped three positions to 134th spot in the latest 'ease of doing business' list, which is topped by Singapore.

The World Bank group has been publishing annually 'Doing Business Report' since 2004. The report provides specific information on ease of doing business in 189 countries.

However, the government has raised concerns with the World Bank about various indicators used in the ease of doing business report which, due to its name, "often gets mistaken to refer to general business environment".