Don’t miss the latest developments in business and finance.

Ease of doing biz: Cos bat for single-window clearance

Image
Press Trust of India New Delhi
Last Updated : Aug 31 2015 | 9:32 PM IST
Top companies, including Tata Steel, Hindustan Unilever, ONGC and industry chambers have called for a single window clearance, simplification of regulatory mechanisms and tax structures, among others, to improve ease of doing business in India.
In April, the government had constituted an 11-member expert committee headed by former DIPP secretary Ajay Shankar to suggest ways to cut down on multiple permissions for investors.
Offering their inputs, industrial houses and business chambers stressed on having a single window clearance for projects to attract both domestic and foreign investments.
Pushing for a pre-existing regulatory mechanism, Tata Power has said there should be a common policy in all states to allocate projects.
"There are multiple organisations which are approving several chapters of the DPR (detailed project report) and there is lack of coordination among these agencies resulting in delays," it has noted.
Similarly, Tata Steel has suggested for a single all-encompassing levy other than indirect tax in the mining sector, which could be collected by states. It has also suggested easing of land acquisition laws.

More From This Section

GMR said there should be a single window, time-bound, online system for obtaining all approvals related to setting up new businesses without making entrepreneurs, developers and businessmen reach out to different departments.
"Create a land bank database across all districts with details on land which is encumbrance free and has clear titles. This land bank could be managed by a nodal government agency for speedy identification and allotment to industry players," GMR has said in its suggestions.
For projects and mega industries with high economic impact requiring land, "the government should give 100 per cent reimbursements and exemption from stamp duty and registration charges", it said.
According to Hindustan Unilever, there have been instances where two departments of the government have regulations on the same issue or have taken a view which is at variance with one another.
"This increases complexity and difficulty in compliance... this shows that there is a scope for improvement in these areas," the FMCG major has said.
Chairman of the Godrej group Adi Godrej too has suggested for a single window approach whereby the applicant can submit all mandatory prior registrations.
ONGC has said operators face problems of non-approval or an inordinate delay in getting approvals from the central and state governments, which lead to consequent delays in the commencement of exploration activity.
These efforts are being made to bring India to the top 50 in the World Bank's report on ease of doing business. Currently, India positioned at 142. Improvement in the ranking is expected to help attract investments and create jobs.

Also Read

First Published: Aug 31 2015 | 9:32 PM IST

Next Story