. The Department of
Industrial Policy & Promotion has requested Ministries/Departments as
well as the State Governments and UTs to set up Investor Facilitation Centres
to help channelize investments into the country.
No
Investor Facilitation Cell has been set up under Invest India in the States.
However, several States have set up their own one-stop facilitation centres to
extend assistance and provide guidelines and cooperation to the investors.
In
pursuance of an Action Plan agreed at the National Workshop on ‘Make in India’
held in December 2014, States/UTs have embarked upon a series of business
reforms with a view to improving efficiency and effectiveness of various
government regulatory functions and services for businesses in India.
Some of the important measures taken by the States are indicated in the
statement at Annexure.
This
information was given by the Minister of State(Independent Charge) in the
Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply
in Lok Sabha today.
*******
RC/nb
ANNEXURE
Initiatives on
Improving ‘Ease of Doing Business’ in India
The
Government of India has taken up a series of measures to improve Ease of Doing
Business. The emphasis has been on simplification and rationalization of the
existing rules and introduction of information technology to make governance
more efficient and effective. The measures taken are:
1. Process of applying for
Industrial License (IL) and Industrial Entrepreneur Memorandum (IEM) has been
made online and this service is now available to entrepreneurs on 24x7 basis at
the eBiz website. This had led to ease of filing applications and online
payment of service charges.
2. 20 services are integrated with
the eBiz portal which will function as a single window portal for obtaining
clearances from various governments and government agencies. These services
are given in Appendix.
3. Notification has been issued on
12-03-2015 by DGFT to limit number of documents required for export and import
to three.
4. Ministry of Corporate Affairs has
introduced an integrated process of incorporation of a company, wherein
applicants can apply for Director’s Identification Number (DIN) and company
name availability simultaneous to incorporation application [Form INC-29].
5. The Companies (Amendment) Act,
2015 has been passed to remove requirements of minimum paid-up capital and
common seal for companies. It also simplifies a number of other regulatory
requirements.
6. A comparative study of practices
followed by the States for grant of clearance and ensuring compliances was
conducted through M/s Accenture Services (P) Ltd. and six best practices were
identified. These were circulated among all the states for peer evaluation and
adoption. The study has also identified important bottlenecks faced by
industries and important steps required to improve the business environment in
States.
7. Application forms for Industrial
Licence (IL) and Industrial Entrepreneur Memorandum (IEM) have been simplified.
8. Vide Press Note 3 (2014), 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. Similarly dual use items, having military as well as
civilian application (unless classified as defence item) will also not require
Industrial License from defence angle. For these items only an Industrial
Entrepreneur Memorandum (IEM) has to be filed.
9. Vide Press Note 5 (2014), initial
validity period of Industrial License has been increased to three years from
two years. This will give enough time to licensees to procure land and obtain
the necessary clearances/approvals from authorities.
10. MHA has stipulated that it will
grant security clearance on Industrial Licence Applications within 12 weeks. In
matters other than Explosives and FIPB cases, security clearances are valid for
three years unless there is a change in composition of management or
shareholding.
11. Partial commencement of
production is being treated as commencement of production of all the items
included in the license. This has obviated the hardship of licensees to get
their Industrial License extended even though they have started production.
12. To facilitate investors and to
reply to their queries, Frequently Asked Questions (FAQs) by applicants for
grant of industrial license have been developed and uploaded on DIPP website.
13. Vide Press Note 4 (2014), the NIC
Code NIC 2008 has been adopted, which is the advanced version of industrial
classification. This code will allow Indian businesses to be part of globally
recognized and accepted classification that facilitate smooth
approvals/registration.
14. Vide Press Note 6 (2014), the
‘Security Manual for Licensed Defence Industry’ has been issued. This has
obviated the requirement of affidavit from applicants. Earlier, an affidavit
signed before Judicial Magistrate was required from the applicant to confirm that
they will comply with the safety & security guidelines/procedures laid down
by the Ministry of Defence and Ministry of Home Affairs in Government of India.
The applicants were facing difficulties in obtaining such affidavit and this
was severely delaying the issue of License even after approval of Licensing
Committee.
15. A checklist with specific
time-lines has been developed for processing all applications filed by foreign
investors in cases relating to Retail/NRI/EoU foreign investments. This has
been placed on the DIPP website.
16. An Investor Facilitation Cell has
been created in ‘Invest India’ to guide, assist and handhold investors during
the entire life-cycle of the business.
17. SEZ Units allowed removing goods
for repair, replacement, testing, calibration, quality testing and research and
development on self-attestation.
18. Process of applying for
Environment and Forests clearances has been made online through Ministry of
Environment and Forests and Climate Change’s portals
http://environmentclearance.nic.in/ and http://forestsclearance.nic.in/ .
19. Requirement for Environment
Assessment Report is required for industrial shed, school, college, hostel for
education institution above 20,000 square meters of build-up area up to 150,000
square meters of build-up area.
20. The issue of time taken in
registration with Employees Provident Fund Organization (EPFO) and Employees
State Insurance Corporation (ESIC) was taken up with the Ministry of Labour and
Employment, Director General, ESIC and Central Provident Fund Commissioner.
Both the processes have been automated and ESIC registration number is being
provided on a real-time basis.
21. An order facilitating revival and
rehabilitation of MSMEs through banker’s committee has been issued by Ministry
of MSME.
22. A unified portal for registration
of Units for LIN, reporting of inspection, submission of returns and grievance
redressal has been launched by Ministry of Labour and Employment.
23. DIPP has requested all
Secretaries of Government of India and Chief Secretaries of the States/UTs to
simplify and rationalize the regulatory environment. In order to improve the
regulatory business environment they have been requested to take the following
measures on priority: a) All returns should be filed on-line through a unified
form; b) A check-list of required compliances should be placed on Department’s
web portal; c) All registers required to be maintained by the business should
be replaced with a single electronic register; d) No inspection should be
undertaken without the approval of the Head of the Department; and e) For all
non-risk, non-hazardous businesses a system of self-certification should be
introduced.
24. Registration process of VAT and
Professional tax has been merged into a single process with single ID on 1st
January, 2015 by the Government of Maharashtra.
25. Registration for VAT in Delhi has
been made online. TIN allotment is done real-time and business can start
immediately on receipt of TIN number.
26. The time required for giving a
new electric connection in Mumbai has been reduced to 21 days from 67 days. The
number of procedures involved has been cut down to 3 from existing 7.
27. Simplified procedure for new
electric connection in Delhi with reduced procedures and time.
28. Municipal Corporation of Delhi
has launched online application process for grant of construction permits for
residential and industrial buildings on 16th March, 2015 and commercial
buildings in May, 2015.
Appendix
|
List of 20 Central Government
Services(Integrated)
|
|
Sl.
No.
|
Ministry/ Dept. Name
|
Service Name
|
|
1
|
Ministry
of Corporate Affairs
|
Name
Availability
|
|
2
|
Ministry
of Corporate Affairs
|
Director
Identification Number
|
|
3
|
Ministry
of Corporate Affairs
|
Certificate
of Incorporation
|
|
4
|
Ministry
of Corporate Affairs
|
Commencement
of Business
|
|
5
|
Central
Board of Direct Taxes
|
Issue
of Permanent Account Number (PAN)
|
|
6
|
Central
Board of Direct Taxes
|
Issue
of Tax Deduction Account Number (TAN)
|
|
7
|
Reserve
Bank of India
|
Advanced
Foreign Remittance (AFR)
|
|
8
|
Reserve
Bank of India
|
Foreign
Collaboration-General Permission Route (FC-GPR)
|
|
9
|
Employees’
Provident Fund Organization
|
Employer
Registration
|
|
10
|
Employee’s
State Insurance Corporation
|
Employer
Registration
|
|
11
|
Petroleum
and Explosives Safety Organization
|
Issue
of Explosive License
|
|
12
|
Directorate
General of Foreign Trade
|
Importer
Exporter Code License
|
|
13
|
Department
of Industrial Policy and Promotion
|
Industrial
License
|
|
14
|
Department
of Industrial Policy and Promotion
|
Industrial
Entrepreneur Memorandum
|
|
15.
|
Department
of Heavy Industry (DHI)
|
Issue
of custom duty concession certificate to entrepreneurs under project import
scheme
|
|
16.
|
Central
Board of Direct Taxes (CBDT)
|
Changes
or correction in PAN data
|
|
17.
|
Reserve
Bank of India
|
Foreign
Currency- Transfer of Shares
|
|
18.
|
Ministry
of Labour and Employment (MoL&E)
|
Registration
under the Contract Labour Act, 1970
|
|
19.
|
Ministry
of Labour and Employment (MoL&E)
|
Registration
under the Building and other construction workers Act, 1996
|
|
20.
|
Ministry
of Labour and Employment (MoL&E)
|
Registration
under the Inter-State Migrant Workmen Act, 1979
|
*********