Lok Sabha Question No. 1389 (UNSTARRED), answered on 2019-11-27
Subject: Promoting Ease of Doing Business
Ministry: COMMERCE AND INDUSTRY
Asked by: Ramdas Chandrabhanji Tadas, Chandra Prakash Joshi, Ravi Kishan Shukla, Sangamlal Kadedin Gupta

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 1389. TO BE ANSWERED ON WEDNESDAY, THE 27 TH  NOVEMBER, 2019.

## PROMOTING EASE OF DOING BUSINESS

## 1389.  SHRI RAMDAS C. TADAS:

SHRI CHANDRA PRAKASH JOSHI:

SHRI RAVI KISHAN:

SHRI SANGAM LAL GUPTA:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

वाणिज्य

## एवं उद्योग मंत्री

- (a) the works carried out by the Government during each of the last five years in respect of the initiative for ease of doing business;
- (b) whether  there  is  any  system  under  which  the  Government  has  arranged  a single window for business;
- (c) if so, the details thereof;
- (d) whether the Government has made any arrangement for providing loans to businessmen at short notice; and
- (e) if so, the details thereof?

## ANSWER

## वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT),  in coordination  with  Central  Ministries/Departments,  States  and  Union Territories  (UTs),  has  spearheaded  various  reforms  to  improve  the business climate in the country. A summary of initiatives taken in this regard is given in Annexure .
- (b) & (c): Yes, Sir. The State Reforms Action Plan prepared by Department for Promotion of Industry  and Internal Trade (DPIIT) requires States and UTs to have a Single Window System across various Departments with the following features:
- i. Allow online submission of application without the need to submit physical copies of the application.
- ii. Eliminate  physical  touch-point  for  document  submission and verification.
- iii. Allow applicant to track status of application online.
- iv. Ensure the applicant receives an SMS/e-mail notification as and when the application is submitted and/or query is raised and/or application is approved/rejected.
- v. Mandate that all queries/clarifications related to investors' application  are  sought  in  one  go  and  within  7  days  of receipt of the application.

Under the assessment exercise of States/UTs for the year 2017-18, 21 States/UTs  have  designed  and  implemented  online  Single  Window System.

- (d) & (e): Contactless digital lending has been initiated through PSBloansin59minutes.com which provides online in-principle approval for  loans  to  Micro,  Small  and  Medium  Enterprises  (MSMEs)  and  for housing and personal loans. Further, online bill discounting for MSMEs has been enabled on a competitive basis through the Trade Receivables electronic Discounting System (TReDS) platform.

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## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  LOK  SABHA UNSTARRED QUESTION NO. 1389 FOR ANSWER ON 27.11.2019.

## Ease of Doing Business Initiatives at State and District Level State Reform Action Plan

2014:The Department for Promotion of Industry and Internal Trade (DPIIT) has in consultation with the State Governments started a comprehensive reform exercise in States and UTs in December, 2014. The aim of this exercise is to create a conducive business environment by streamlining regulatory structures and creating an investorfriendly business climate by cutting down red tape.

2015:A 285 point BRAP 2015 was finalized and shared with States/UTs. The World Bank  also  partnered  with  DPIIT  in  this  reform  plan  and  to  give  the  exercise momentum,  conducted  18  workshops  to  help  Departments  concerned  across States/UTs understand the essence of the reforms better. States were evaluated on implementation  of  these  reforms  and  first  ever  ranking  of  States/UTs  on  Ease  of Doing  Business  was  released  in  September,  2015.  The  findings  of  the  evaluation were  compiled  in a report titled ' Assessment  of  State  implementation  of Business Reforms '.

2016:In  2016,  DPIIT,  in  consultation  with  all  States/UTs,  released  a  340-point action  plan  which  included  recommendations  on  58  regulatory  processes,  policies and  process  spread  across  10  reform  areas  spanning  the  lifecycle  of  a  typical business.  The  States  were  requested  to  implement  the  reforms  action  plan  and submit their responses for evaluation. The final ranking of States/UTs was released on 31 st October, 2016 with a national implementation average of 48.93%, which was higher than national average of 32% in 2015. The reform exercise in 2016 saw larger participation and 12 States achieving greater than 90% implementation score.

2017-18:In 2017, the reform exercise featured 372 action points with additions like Central Inspection system, online systems for acquiring trade license, registrations under Legal Metrology Act, 2009, and registration of Partnership Firms & Societies. DPIIT undertook numerous initiatives for the reform such as:

-  Unique  handholding  method  introduced  where  States  with  high  score  were partnered with low scoring States/UTs. West Bengal merits a special mention for its effort for conducting a 3-day workshop for Nagaland
-  Priority reforms identified for States with a low implementation score
-  8  workshops  conducted  in  partnership  with  The  World  Bank  to  address queries posed by States/UTs

The assessment for the year 2017-18 was released jointly by DPIIT and the World Bank on 10 th July, 2018. 18 States recorded implementation score of 80% and above

-  these  states  account  for  majority  of  the  total  area  and  GDP  of  the  country.  The respective position of the States is given in the table below:

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| Top achievers (above 95%)   | Top achievers (above 95%)   | Achievers (90- 95%)   | Achievers (90- 95%)   | Fast movers (80 - 90%)   | Fast movers (80 - 90%)   | Aspirers (below 80%)   | Aspirers (below 80%)      |
|-----------------------------|-----------------------------|-----------------------|-----------------------|--------------------------|--------------------------|------------------------|---------------------------|
| Rank State                  | Rank State                  | Rank                  | State                 | Rank                     | State                    | Rank                   | State                     |
| 1                           | Andhra Pradesh              | 10                    | West Bengal           | 16                       | Himachal Pradesh         | 19                     | Goa                       |
| 2                           | Telangana                   | 11                    | Uttarakhand           | 17                       | Assam                    | 20                     | Punjab                    |
| 3                           | Haryana                     | 12                    | Uttar Pradesh         | 18                       | Bihar                    | 21                     | Kerala                    |
| 4                           | Jharkhand                   | 13                    | Maharashtra           |                          |                          | 22                     | Jammu & Kashmir           |
| 5                           | Gujarat                     | 14                    | Odisha                |                          |                          | 23                     | Delhi                     |
| 6                           | Chhattisgarh                | 15                    | Tamil Nadu            |                          |                          | 24                     | Daman & Diu               |
| 7                           | Madhya Pradesh              |                       |                       |                          |                          | 25                     | Tripura                   |
| 8                           | Karnataka                   |                       |                       |                          |                          | 26                     | Dadra & Nagar Haveli      |
| 9                           | Rajasthan                   |                       |                       |                          |                          | 27                     | Puducherry                |
|                             |                             |                       |                       |                          |                          | 28                     | Nagaland                  |
|                             |                             |                       |                       |                          |                          | 29                     | Chandigarh                |
|                             |                             |                       |                       |                          |                          | 30                     | Mizoram                   |
|                             |                             |                       |                       |                          |                          | 31                     | Andaman & Nicobar Islands |
|                             |                             |                       |                       |                          |                          | 32                     | Manipur                   |
|                             |                             |                       |                       |                          |                          | 33                     | Sikkim                    |
|                             |                             |                       |                       |                          |                          | 34                     | Arunachal Pradesh         |
|                             |                             |                       |                       |                          |                          | 34                     | Lakshadweep               |
|                             |                             |                       |                       |                          |                          | 34                     | Meghalaya                 |

Some important achievements under this reform exercise were as follows:

-  19 States have designed an Information Wizard providing information for all approvals, licenses, registrations timelines, procedure to establish business/industrial unit (pre-establishment & pre-operation)
-  21  States /UTs  have  designed  and  implemented  online Single  Window System
-  21 States /UTs have implemented a GIS system to provide details about the land earmarked for industrial use across the State
-  23 States /UTs have reduced the number of documents required for Obtaining Electricity connection to only 2
-  18 States /UTs have brought all compliance inspections conducted by Labour, Factories,  Boilers  Departments  and  Pollution  Control  Boards  under  Central Inspection Framework
-  29 States / UTs have notified a list of white category industries exempted from taking pollution clearances.

2019:An  80  point  action  plan  for  the  year  2019  was  shared  on 11 th October 2018 with States and UTs for implementation of reforms by 14 th August, 2019.

An important  change introduced  in  the  action  plan  for  the  year  2019  is  that  the assessment is based only on the feedback received from users and industries.

## DPIIT has undertaken a number of Capacity building initiatives:

Union Territory Workshops and Regional Workshops: Various workshops have been  organised  by  DPIIT  to  discuss  both  the  state  and  district-level  reform  plans related issues and clarifications.

- -7  workshops conducted  in Union  Territories (Dadra  &  Nagar  Haveli,  Delhi, Chandigarh, Daman & Diu, Puducherry, Andaman & Nicobar Islands, Lakshadweep)
- -5  Regional  Workshops conducted  in  Lucknow  (North  Region),  Kolkata  (East Region),  Mumbai  (West  Region),  Bengaluru  (South  Region)  and  Guwahati (North-East Region).

## District Reform Action Plan

DPIIT has also prepared a 218 point District Reform Plan which is spread across 8 areas: Starting  a  Business  for  Construction,  Urban  Local  Body  Services,  Paying Taxes,  Land  Reform  Enabler, Land  Administration and  Property Registration Enablers,  Obtaining  Approval,  Miscellaneous  and  Grievance  Redressal/  Paperless Courts and Law & Order.

A suggested questionnaire for the feedback for States/UTs has also been prepared by  DPIIT  and  shared  with  the  States.  States/UTs  have  been  encouraged  to participate in this reform and take onus to conduct the feedback exercise in Districts.

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