Lok Sabha Question No. 2501 (UNSTARRED), answered on 2016-08-01
Subject: Traders' Concerns
Ministry: COMMERCE AND INDUSTRY
Asked by: A. ARUNMOZHITHEVAN

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

UNSTARRED QUESTION NO. 2501. TO BE ANSWERED ON MONDAY, THE 1 ST  AUGUST, 2016.

## TRADERS' CONCERNS

## 2501.  SHRI A. ARUNMOZHITHEVAN:

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

## वाणिज् यवव द्यग ं ्री

- (a) whether  the  Government  is  likely  to  consider  the  concerns  of  traders  on taxation,  banking  and  other  issues  getting  in  the  way  of  ease  of  doing business;
- (b) if so, the details thereof;
- (c) whether the Government has asked them to adopt new technologies to grow faster and if so, the details thereof;
- (d) whether  the  traders  have  been  asked  to  submit  the  list  of  issues  to  the Department of Industrial Policy & Promotion; and
- (e) if so, the details thereof along with the response received and the action taken by the Government thereon?

## 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): Government has taken a number of steps towards ease of doing business in  the  past  two  years.    In  this  regard,  major  reforms  are  underway  on various  parameters  of  Doing  Business  like,  starting  a  business,  getting credit, paying taxes etc.  The details of such reforms  undertaken is placed at  Annex.    Taking  cue  from  the  World  Bank's  ease  of  doing  business index, a similar ranking has been introduced in India among  States and Union Territories.  The move is intended at promoting competition between states  to  improve  ease  of  doing  business  and  address  the  concerns  of business including  traders  of the country.
- (c): No, Madam.
- (d) & (e): No, Madam.   Traders have not been asked to submit the list of issues to the Department of Industrial Policy & Promotion.  However, in May, 2016, Department  of  Industrial  Policy  &  Promotion  had  written  to  Industry associations  and  had sought  suggestions  that  will  help  India  improve  its regulatory  environment  and  consequently  its  rank  in  Doing  Business Report. Government undertakes such consultations with various stakeholders  regularly.    Suggestions  received  from  various  stakeholders are  duly  considered  and  examined  before  undertaking  any  regulatory reforms.

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## ANNEXURE

ANNEXURE REFERRED TO IN REPLY TO PARTS  (a) & (b) OF THE LOK SABHA UNSTARRED  QUESTION NO. 2501 FOR ANSWER  ON 01.08.2016.

## REFORMS UNERTAKEN ON VARIOUS PARAMETERS OF EASE OF DOING BUSINESS

## 1.  STARTING A BUSINESS

-  Registration  with  ESIC  and  EPFO  has  been  made  real-time  by eliminating all physical touch-points.
-  The requirement of opening a bank account has been removed as a mandatory condition for registration with ESIC and EPFO.
-  The system of issuing PAN and TAN has been put in place together within  T+1  days  on  an  application  using  digital  signature  on  the  ebiz platform. PAN and TAN numbers are issued on CBDT's portal within T+3 days.
-  Maharashtra state has combined the process of registration with VAT and Profession Tax. The registration will now be granted in 24 hours and the same has been adopted by Delhi VAT.
-  Form  INC  29  has  been  launched  by  Ministry  of  Corporate  Affairs  to avail 3 pre-registration services viz. 'Name  Availability', 'Director Identification  Number'  and  'incorporation  of  company'  with  one  form and one payment.
-  No Environment clearance is required for 36 white industries.
-  Mine prospecting projects have been exempted from the requirement of  compensatory afforestation and Forest Rights Act (FRA) certificate for grant of forest clearance.
-  No  site inspection is required for  mine  prospecting projects on forestland for less than 100 ha. for construction of new roads/drilling of bore hole/ sample collection pits.
-  Industrial sheds and educational institutions have been exempted from Environmental Clearance (EC).
-  Validity of Environment Clearance has been increased from 5 years to 7 years.
-  Online submission of applications for environment/forest/wildlife clearances  has  been  put  in  place  for  transparent  and  expeditious decision-making.
-  District Environment Impact Assessment authority has been constituted to  grant  EC for mining of minor minerals for 5 ha. of individual lease and 25 ha. in a cluster.
-  Regional  empowered  committees  at  sub  national  level  have  been delegated higher powers to dispose of proposals for Forest Clearance
- a) Involving diversion of 5 to 40 hectares of forest land and
- b)  All proposals involving diversion of forestland for linear projects irrespective of area of forest land involved.
-  The competent authorities in the state government have been delegated powers to issue permission for tree felling and commencement  of  work  for  a  period  of  one  year  of  linear  projects without waiting for final approval under the Forest Conservation Act.
-  EIA notification, 2006 has been amended delegating higher powers to State Environment Impact Assessment Authority (SEIAA) in respect of projects (category B) which require clearance from SEIAA.

## 2.  CONSTRUCTION PERMITS

-  Municipal Corporation of Greater Mumbai (MCGM) has completed the process of single window approval by integrating with internal departments as well as, AAI and NMA through a common application form.
-  NoCs  from  Maharashtra  Industrial  Development  Corporation  (MIDC), Director  of  Industries,  Collector  and  Maharashtra  Housing  and  Area Development Authority (MHADA) have been eliminated.
-  MCGM has introduced digital signing of building permit application, as well  as  maps,  thereby  eliminating  need  of  physical  submission  of documents.  The  manual  application  for  grant  of  construction  permits has been discontinued.
-  Municipal  Corporations  of  Delhi  has  completed  the  process  of  single window  approval  by  integrating  with  internal  departments  as  well  as DMRC, Delhi Fire Services, DUAC, AAI and NMA through a common application form. NOC from Labour Department of Delhi Government is not required if no manufacturing activity is undertaken in the building.
-  MCD has introduced  digital  signing  of  building  permit  application,  as well as maps, thereby eliminating the need of physical submission of documents. Manual submission of application for grant of construction permits has been done away with.
-  Ministry  of  Urban  Development  and  Delhi  Development  Authority (DDA) have notified the Unified Building Bye-laws.
-  Colour  coded  maps  have  been  developed  by  AAI,  NMA,  DUAC  and DMRC to enable applicants to determine whether NOC is required for the land for which permission is applied for.
-  AAI,  NMA,  DUAC,  DMRC,  Delhi  Fire  service,  Mumbai  Metropolitan Region  Development  Authority  (MMRDA)  and  Mumbai  Metro  Rail Corporation (MMRC)  have created their own online application systems  for  receiving  and  issuing  NOC/approval.  Their  requirements have also been integrated in the common application form developed by South Delhi Municipal Corporation/MCGM.
-  NMA  has  designed  a  system  whereby  the  applicant  could  himself determine as to whether he requires NOC from NMA or not by the use of the ISRO mobile app (Smarak Citizen).

## 3.  GETTING ELECTRICITY

-  Maharashtra  and  Delhi  have  implemented  lump-sum  charges  for electric connection thereby removing the need of an estimate and.
-  Online application for connections above 100KVA  mandatory  in Maharashtra and Delhi.
-  Delhi  Electricity  Regulatory  Commission  (DERC)  has  rationalized  LT and HT tariff thereby allowing LT connections upto 150KVA.
-  DERC has revised the application format of Delhi Electric Supply Code and  Performance  Standards  Regulations,  2007  for  faster  release  of electricity connection. The distribution licensees have been directed to process  applications  in  the  revised  format  along  with  the  declaration form.

Following are the two documents required for getting electricity connection:

1.  Identity proof
2.  Proof of ownership/ occupancy of premises.
3.  NOC/Consent  to Establish is not required for getting industrial electricity connection for setting up new industries and projects.
4.  Amendments in Central Regulatory Authority regulation has been done to  allow  installation  of  transformers  up  to  500  KVA  on  double  pole structure.
5.  Amendments in  Central  Regulatory  Authority  notification  to  waive  off electrical approval for 11 KV installations carried out by DISCOMs and allowing self-certification by DISCOMs engineers.
6.  Supply Code Regulation and Standard of Performance (SOP) regulations have been modified by DERC and MERC to complete the process within 15 days.

## 4.  TRADING ACROSS BORDERS

-  Central Board of Excise and Customs (CBEC) has implemented Single Window Interface for Facilitating Trade (SWIFT) (online single window for clearance of goods) on the ICEGATE portal by integrating FSSAI, Animal  Quarantine,  Plant  Quarantine,  Drug  Controller  and  Wildlife Control Bureau for imports.
-  Online  message  exchange  system  under  single  window  between Customs' ICEGATE and Plant Quarantine Information System (PQIS) has been implemented for import clearances of agricultural commodities.
-  Customs'  risk  management  system  has  been  extended  to  other regulatory agencies to ensure risk- based inspection.
-  168 low phytosanitary risk agricultural commodities listed under schedule VII of the PQ order, 2003 have been identified for 5% random inspection.
-  Mandatory  testing  of  imports  from  countries  where  azo  dye  has  not been banned has been reduced to 25%.
-  The limit on the number of consignments released under direct delivery has been removed facilitating prompt delivery of goods.
-  Terminal  handling  receipts  have  been  eliminated  from  Jawaharlal Nehru Port  Container Terminal,  Gateway  Terminals  India  and  Nhava Sheva International Container Terminal by web based e-form 13.
-  Filing of import and export declarations and manifests has been made online with digital signature.
-  An electronic messaging system between Shipping lines and Custodians for electronic delivery order has been introduced.
-  Customs' Clearance Facilitation Committee has been set up at every major customs seaport and airport at Central level.
-  The  system  of  physical  control  and  locking  of  public  and  private warehouses  by  Customs  has  been  dispensed  with  and  replaced  by record based controls.
-  24x7 customs clearance facilities have been extended to 19 seaports and 17 air cargo complexes.
-  Documents required for export and import has been reduced to three.

## 5.  RESOLVING INSOLVENCY

-  Insolvency and Bankruptcy Code  Bill has been passed in the Parliament.
-  Constitution of National Company Law Tribunal and National Company Appellate Law Tribunal has been notified.

## 6.  ENFORCING CONTRACTS

-  The Arbitration and Conciliation Act has been amended to reduce the time taken in arbitration proceedings and grounds on which an award may be challenged.
-  Commercial Appellate Division Bench and Commercial Division Benches are functioning in Bombay High Court and Delhi High Court.
-  The  Delhi  High  Court  Act,  1966  has  been  amended  to  increase  the pecuniary jurisdiction  of  the  Delhi  District  Court  from  INR  2  million  to INR 20 million.

## 7.  REGISTERING PROPERTY

-  In Delhi, all sub-registrar offices have  been  digitized  and  Subregistrar's  records  have  been  integrated  with  the  Land  Records Department.
-  In Maharashtra, all property tax records have been digitized.

## 8.  GETTING CREDIT

SARFAESI (Central Registry) Rules, 2011 has been amended to record security interest created on all types of property viz. movable, immovable as well as intangible.

## 9.  PAYING TAXES

-  Payment  of  Employee  State  Insurance  Corporation  and  Employee Provident  Fund  Organization  contributions  can  now  be  made  online through 58 banks, debit cards or credit cards.
-  ESIC and EPFO returns have been unified.
-  Sales  tax  department  of  Maharashtra  has  eliminated  physical  touch point  for  filing  of  tax  returns,  tax  payment  and  tax  compliances  by introducing  online  return  filing  and  online  payment  through  GRAS (Government  Receipt  Accounting  System)  for  VAT,  CST,  Profession tax, Luxury Tax and Entry Tax.
-  Electronic Verification Code (EVC) has been introduced as one of the possible mode for validation of tax returns. Earlier, some categories of taxpayers were required to submit Form ITR-V manually through post for validation of tax returns. Introduction of EVC has made the exercise of  filing  tax  return  electronic.  It  has  also  reduced  the  time  period  for filing  the  tax  return  considerably.  During  the  year,  income-tax  returns were also made much simpler with culling of many irrelevant columns for all categories of taxpayers. Further, the Tax Audit Report which is required to be filed online was also standardized and harmonized with various provisions of the Companies Act.
-  An option for efiling is available for filing or revising returns.

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