Lok Sabha Question No. 1256 (UNSTARRED), answered on 2015-12-07
Subject: Registration of Complaints under Policy
Ministry: COMMERCE AND INDUSTRY
Asked by: RADHESHYAM BISWAS

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 1256. TO BE ANSWERED ON MONDAY, THE 7 TH  DECEMBER, 2015.

## REGISTRATION OF COMPLAINTS UNDER NEIIPP POLICY

## 1256. SHRI  RADHESHYAM  BISWAS:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether  the  Government  has  any  plans  to  start  the  new  registration  of companies under the policy of North East Industrial and Investment Promotion Policy (NEIIPP), 2007 which was stopped in the month of December, 2014;
- (b) if so, whether the Government has any new plan to boost the industrialization dream of North Eastern (NE) States and if so, the details thereof;
- (c) the  measures  taken  by  the  Government  for  earliest  implementation  of  the Make in India policy for NE States; and
- (d) if so, the details thereof, NE State-wise and industry-wise?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a) & (b):

The  schemes  under  North  East  Industrial  and  Investment  Promotion Policy  (NEIIPP),  2007  have  neither  been  cancelled  nor  withdrawn. However, fresh registration under NEIIPP, 2007 was suspended with effect  from    01.12.2014  as  the  allocations  for  the  schemes  under NEIIPP, 2007 have been fully utilized and liability have been incurred far  in  excess  of  the  12 th Five  Year  Plan  allocations.    At  present  no proposal  is  under  consideration  to  start  new  registration  of  industrial units  under  North  East  Industrial  and  Investment  Promotion  Policy (NEIIPP), 2007.

Government  of  India is  focused on expeditious  and  time-bound completion of infrastructure projects viz. road, rail, power, civil aviation, telecommunication, waterways etc.  in North Eastern Region.  Some of the major projects have been completed or near completion.  Business summits  have  been  organized  from  time  to  time  to apprise  the prospective entrepreneurs about the infrastructure development in the region and inviting them to set up industries in NER.  Interest free loans have been provided to North Eastern Development Finance

Corporation  Limited  (NEDFi)  by  the  Government  of  India  to  promote development of small and micro industries.

- (c) & (d): In order to implement the Make in India policy, the Government of India has taken a series of measures to improve Ease of Doing Business in India. The emphasis has been on building manufacturing infrastructure, simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient and effective. The details of measures taken by Government of India are at Annexure.

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## ANNEXURE REFERRED TO IN REPLY TO PARTS (c) AND (d) OF THE LOK SABHA UNSTARRED QUESTION NO. 1256 TO BE ANSWERED ON THE  7 TH  DECEMBER,  2015

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. India  was  ranked  142 nd in  Doing  Business  Report,  2015.    The  World  Bank  has released Doing Business Report, 2016 on 27 th October, 2015.  India is ranked at 130 (against a recalculated rank of 134 th for 2015).  India's rank has improved in 'starting a business', 'dealing with construction permit' and 'getting electricity' indicators.
2. A  report  titled  'Assessment  of  State  Implementation  of  Business  Reforms'  was released on 14 th September 2015. The report captures the findings of an assessment of reform implementation by States, led by DIPP, Ministry of Commerce and Industry, Government  of  India  with  support  from  World  Bank  group  and  KPMG.  This assessment has been conducted to take stock of reforms implemented by States in the period January 1 to June 30 2015 based on a 98-point action plan for business reforms agreed between DIPP and State/UTs and rank them according to the ease of doing business.

The assessment reveals that States are at different levels of implementation on  the  98-point  action  plan.  The  implementation  status  of  each  State  has  been converted to a percentage, and, on the basis of this the State rankings have been calculated.

Figure 1: Source: Assessment of State Implementation of Business Reforms, September 2015 published by DIPP

3. 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.

4. 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 Annexe herewith.
5. Notification has been issued on 12-03-2015 by DGFT to limit number of documents required for export and import to three.
6. 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 INC29].
7. 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.
8. 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.
9. Application forms for Industrial Licence (IL) and Industrial Entrepreneur Memorandum (IEM) have been simplified.
10. 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.
11. 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.
12. 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.
13. 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.
14. 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.
15. 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.

16. 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.
17. 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.
18. An Investor Facilitation Cell  has  been  created  in  'Invest  India'  to  guide,  assist  and handhold investors during the entire life-cycle of the business.
19. SEZ  Units  allowed  removing  goods  for  repair,  replacement,  testing,  calibration, quality testing and research and development on self-attestation.
20. 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/ .
21. Requirement  for  Environment  Assessment  Report  is  required  for  industrial  shed, school, college, hostel for education institution above 20,000 square meters of buildup area up to 150,000 square meters of build-up area.
22. 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.
23. An order facilitating revival and rehabilitation of MSMEs through banker's committee has been issued by Ministry of MSME.
24. 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.
25. 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.
26. 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.
27. 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.
28. 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.
29. Simplified  procedure  for  new  electric  connection  in  Delhi  with  reduced  procedures and time.
30.  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.

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## Annexe

| List of 20 Central Government Services(Integrated)   | List of 20 Central Government Services(Integrated)   | 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                             |

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