Lok Sabha Question No. 1618 (UNSTARRED), answered on 2020-09-21
Subject: Ranking on Ease of Doing Business
Ministry: COMMERCE AND INDUSTRY
Asked by: Su Thirunavukkarasar, Parvatagouda Chandanagouda Gaddigoudar

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1618. TO BE ANSWERED ON MONDAY, THE 21 ST   SEPTEMBER, 2020.

## RANKING IN EASE OF DOING BUSINESS

## 1618.  SHRI THIRUNAVUKKARASAR SU: SHRI P.C. GADDIGOUDAR:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether India's position has moved forward on the rankings of Year 2020 for 'Ease of Doing Business;
- (b) if so, the details thereof;
- (c) whether any steps are being taken by the Government to boost the investors' confidence and to remove the hurdles being faced by them;
- (d) if so, the details thereof;
- (e) the  steps  taken  to  further  improve  the  global  ranking  of  the  country  in  the coming years; and
- (f) whether the Government has also launched 10-in-1 form for starting company faster and if so, the details thereof?

## ANSWER वाणिज्य एवं उद्योग मंत्री श्री पीयूष गोयल

## ( ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a) & (b): Yes Sir. In the latest Doing Business Report (DBR), 2020 released by the World Bank on 24 th October, 2019, India stands at 63 rd position out of  190  countries,  registering  a  jump  of  14  places  from  its  last  year's rank. India has improved its rank in 7 out of 10 indicators in DBR, 2020 and has moved closer to international best practices. The DBR, 2020 also acknowledges India as one of the top 10 improvers, third time in a row.
- (c) to (e): Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT),  in coordination with Central Ministries/Departments and States/UTs, has taken  several  steps  to  improve  the  regulatory  environment  in  the country thereby boosting investors' confidence. The details of reforms

undertaken to improve business regulatory environment in the country thereby improving India's ranking in the World Bank's Doing Business Report are given in Annexure.

- (f): Yes  Sir.  Ministry  of  Corporate  Affairs  has  introduced  a new  webbased 'SPICe+  and  AGILE-PRO'  form which  integrates  ten  different services  from  three  Central  Ministries/Departments and  one  State Government. These services are - (i) Name Reservation, (ii) Company Incorporation, Registration of - (iii) Permanent Account Number (PAN), (iv) Tax Deduction and Collection Account Number (TAN), (v) Director Identification Number (DIN), (vi) Employees' Provident Fund Organisation  (EPFO),  (vii)  Employees'  State  Insurance  Corporation (ESIC),  (viii)  Goods  &  Services  Tax  (GST) &  (ix)  Profession  Tax (Maharashtra); and (x) opening of bank account.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO PARTS (c)TO (e)  OF LOK SABHA UNSTARRED QUESTION NO. 1618 FOR ANSWER ON  21.09.2020.

Some of the major indicator wise reforms undertaken by DPIIT/Nodal Ministries/Departments/States towards  easing  the  business  regulatory  environment in the country are as under:

## a. Starting A Business:

-  Ministry of Corporate Affairs has introduced a new Web form called SPICe+ replacing the existing SPICe form. SPICe+ offers 10 services like Incorporation,  DIN allotment, mandatory issue of PAN and TAN, mandatory registration of EPFO  and  ESIC, mandatory issue of Profession Tax registration in case of companies being incorporated in Maharashtra, opening of Bank account of the company and allotment of GSTIN.
-  Removing the requirements of company seal, minimum capital and obtaining certificate of commencement.
-  Incorporation  fee  has  been  eliminated  for  companies  with  authorized  share capital up to INR 15 lakh.
-  The  requirement  to issue a physical PAN  card  has  been  eliminated. Additionally, PAN and TAN are mentioned in the Certificate of Incorporation (CoI) which is considered as a sufficient proof for PAN and TAN.
-  Registrations  under  Mumbai  Shops  &  Establishments  Act  are  provided instantly  at  no  cost  through  an  online  application  removing  requirement  of physical inspection.

## b. Dealing with Construction Permits:

## Mumbai

-  PR  card  can  now  be  digitally  retrieved  from  Online  Building  Permission System.
-  Digitally authenticated CTS maps can now be downloaded from 'Mahabhunakasha' portal.
-  All NOCs required for Construction Permits including Fire and Water can now be applied online and Single Joint Site Inspection is being carried out.
-  Risk based approval for construction permits has been made mandatory.

## Delhi

-  Online application for building plan approval has been introduced.
-  Online submission of application for NOCs and final site inspection has been introduced.
-  MCDs have introduced joint inspection by all associated agencies (including Fire).

## c. Getting Electricity:

-  The number of processes involved has been reduced by elimination of nonessential processes. This has also reduced the time taken for grant of a new electric connection.
-  The  number  of  documents  required  has  been  restricted  to  (i)  a  proof  of identity, and (ii) a proof of address/ownership/occupancy.
-  A  load  based  estimate  has  been  introduced  to  reduce  time  taken  in  this process.
-  Reduction in Service Line Development (SLD) charges to INR15000 from INR 25000 in Delhi.

## d. Registering Property:

## Mumbai

-  Online access of land records for last 30 years (deeds & cadastral maps).
-  Land ownership registry and mapping agency database are linked.
-  Automatic Mutation and Name Changes in Land Record after deed execution.
-  Independent Grievance Redressal mechanism for citizens.
-  Online payment of Stamp duty.
-  All privately held land plots are formally registered and mapped.

## Delhi

-  Online  access  of  land  records  is  available  on  DORIS  Portal (deeds  & cadastral maps).
-  Comprehensive and functional electronic database for checking encumbrances.
-  Independent Grievance Redressal mechanism for citizens.
-  Online payment of Stamp duty

## e. Getting Credit:

Following  Amendments  have  been  made  in  SARFAESI  Act  with  effect  from 24.01.2020:-

-  All creditors can now file security interest transaction on Central Registry.
-  Attachment orders and court orders relating to various properties can also be filed on Central Registry.
-  Creditor  gets  priority  from  the  date  and  time  of  filing  security  interest  on Central Registry.

## f. Protecting Minority Investors:

-  Class  Action  suits  may  be  filed  for  seeking  inter  alia  to  claim  damages  or compensation or any other suitable action from or against the company or its directors.

## g. Paying Taxes:

-  Paying taxes has been made easier by replacing many indirect taxes with a single indirect tax, Goods and Service Tax (GST), for the entire country. The previous sales taxes including the central sales tax, CENVAT, state VAT and the service tax have been merged into the GST. Unification of these taxes will reduce the cascading effect of taxes and make taxes paid on inputs creditable to a higher percentage.
-  Minimum Alternate Tax Rate reduced from 18.5% (earlier) to 15% (now).
-  Domestic company has an option to pay income-tax at the rate of 22% subject to  condition  that  they  will  not  avail  any  exemption  /  incentive.  Also,  such companies are not required to pay Minimum Alternate Tax.
-  New  companies  incorporated  on  or  after  1 st October  2019  making  fresh investment in manufacturing,  has an option to  pay  income-tax  at the  rate of 15%.
-  Payments for the contribution for EPFO and ESIC have been made online.

## h. Trading Across Borders:

-  Enhancement of risk-based inspections for both imports and exports, whereby only about 5% of goods are physically inspected.
-  Adoption  of  the  Advance  Bill  of  Entry  which  allows  importers  to  start  the process of customs clearance before the arrival of the vessel.
-  Importers can self-register their goods online on ICEGATE Portal.
-  Electronic delivery of customs clearance copy has been introduced.
-  Priority assessment and examination module are facilitated at JNCH.
-  Direct payment of Terminal Handling Charges can now be made to Terminal Operators.
-  Authorized Economic Operator Scheme has been streamlined and utilization of Direct Port Delivery/Direct Port Entry scheme has been enhanced.
-  Implemented in April 2018, e-Sanchit is an online application system, under the Single Window Interface for Trade (SWIFT) that allows traders to submit all supporting documents electronically with digital signatures.

## i. Enforcing Contracts

-  Dedicated Commercial Courts have been established in Delhi (22) and Mumbai (4).
-  Pecuniary  Jurisdiction  of  District  Commercial  Courts has  been  reduced  to INR 3 lakh.
-  Facility of E-filing and E-Summons have been extended.
-  Automated System for Random Allocation of Cases has been introduced.
-  Judges and Lawyers may access online information about cases and other relevant details  through  Integrated  Electronic  Case  Management  Tools (ECMT).

## j. Resolving Insolvency

-  The Insolvency & Bankruptcy Code, 2016 (IBC) has been introduced with the aim of resolution of insolvency in a time bound  manner  along  with maximization of the value of assets of the debtor in default. The objective of the act is that the debtor is a going concern rather than it being liquidated or sold piece meal.
-  IBC  has  given  time  bound  procedure  for  disposal  of  corporate  insolvency thereby limiting possibility of delays in the process.
-  Creditors can now initiate both liquidation and reorganization processes.
-  Continuation of essential goods or services critical to protect and preserve the value of the debtor during the proceedings is allowed.
-  Financial  creditors  not  agreeing  to  reorganization  proceedings  will  receive same amount, they would have received if liquidation were to take place.

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