While the Centre has just initiated an ambitious project to set up a one-stop-shop portal for prospective entrepreneurs seeking government licences and permissions, state governments are about to follow suit. Delhi, Rajasthan and Punjab plan to rejig their respective industrial and other allied policies to cut red-tapism associated with starting new factories and businesses.
While Delhi is going to come out with a new industrial policy in the next three months, Rajasthan is in the process of initiating a series of measures including simplifying procedures related to land use for industry. Meanwhile, Punjab is formulating a legislation, that seeks to make industries and factories part of the maintenance process of the area it is based in.
The World Bank estimates that it took an average 30 days to start a business venture in India during 2008?down from 89 days in 2004, but still very high compared to its peers like China. In the Doing Business Report of the World Bank, India ranks 122 amongst 181 countries, because of the delay in processing the slew of formalities associated with starting a venture.
Addressing a meeting of state industry secretaries on Friday, Ajay Shankar, secretary, department of industrial policy and promotion urged states to launch a mission for electronic filing of applications to attract investment projects in states and mooted a one-stop clearance mechanism for prospective investors.
Stressing upon the importance of reliable electricity supply, Shankar urged states to consider dedicated power supply for industrial parks, while implementing the Open Access norms under the Electricity Act effectively.
According to a status report prepared by the PHD Chamber of Commerce, a budding entrepreneur needs nearly 58 visits to about 16 state and central government departments to get requisite permissions for setting up a green field industrial project.
?Delhi government wants to bring down the involvement of stakeholders in its industrialisation process. We want to be the sole government agency responsible for industrial estates so that there is efficiency in the system,? said Chetan B Sanghi, commissioner and secretary (Industries) in the Delhi government at a seminar organised by the PHD Chamber of Commerce and Industry.
At the moment, there are 32 industrial estates in Delhi, out of which only four are under the administrative control of Delhi government, while the rest are with DDA and MCD control. Delhi introduced its last industrial policy of Delhi in 1984.
Meanwhile, Rajasthan is working on a policy that promotes using vacant government land to set up new industrial ventures, as an alternative to acquiring new plots.