Brief on Assessment of State Implementation of Business Reforms

Over All status (Refer Graphs in the Annexure)

• Over all rank 6^th for implantation of EoDB
• Gujarat and Andhra Pradesh between 70-71% implementation
• Jharkhand, Chhattisgarh, Madhya Pradesh and Rajasthan between 61-63 & implementation status
• Odisha and below less than 52% and below
• No State with an overall implementation status of 75%
• Aspiring leader among the first seven states i.e. Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Odisha and Rajasthan.

Areas wise status

1. Setting up a Business (Refer Graphs in the Annexure)

• National Average: 31.91%
• 1^st Position: Punjab with 81.48%
• 2^nd Position: Andhra Pradesh with 78.57%
• 3rd Position: Chhattisgarh with 77.78%
• 4th Position: Odisha with 71.43%
• 5th Position: Rajasthan with 65.38%
• Requirements: comprehensive checklist, online system to key in specific details and single window system
• Case study: Punjab, Andhra Pradesh
  • Punjab – one-stop system for various State level regulatory and fiscal incentive approvals
  • Punjab -Bureau is headed by a CEO entrusted with the power to grant approvals
  • Punjab – Officers from various regulatory departments are vested with the powers of their respective departments and work together as Bureau Member Officers.
  • Punjab -Bureau processes applications received through the Invest Punjab website and keeps the investor in the loop regarding various project initiation stages
  • Andhra Pradesh – effective online single window system with provision for filing, payment, status tracking, online scrutiny and approval of applications

Rajasthan Best practices

• Rajasthan has made issuing of Entrepreneur Memorandum I (EM-I) and Entrepreneur Memorandum II (EM-II) completely online. The state has approved 12646 EM-I and 3339 EM-II online till date.
• Through Single Window System, a unique ID is generated for each applicant. This ID is available to multiple departments. It allows for tracking of application status by the investor, Single Window Agency and the respective departments.
• e-Mitra is an ambitious e-governance initiative of Government of Rajasthan which has been implemented in all the districts of the state using Public Private Partnership (PPP) model for convenience and transparency to citizens in availing various services with respect to application and payment of the Government and Private Sectors under a single roof at their door step using e-platform
• At present there are more than 12,826 operational e-Mitra kiosks in the urban areas and more than 20,362 operational Common Service Centers in rural areas
• Single ID for state commercial taxes

2. Allotment of Land and Obtaining Construction Permits (Refer Graphs in the Annexure)

• National Average: 34.57%
• 1^st Position: Madhya Pradesh with 72.73%
• 2^nd Position: Gujarat with 72.41%
• 3^rd Position: Maharashtra with 70.27%
• 4^th Position: Rajasthan with 63.64%
• 5^th Position: Andhra Pradesh with 62.16%
• Requirements: land banks, GIS system, land allotment, conversation of land, construction permit, zonal plans, building plan approval, felling of trees, property reiteration
• Case study: Madhya Pradesh, Gujarat, Rajasthan
  • Madhya Pradesh, Gujarat – published details on the available land banks
  • Madhya Pradesh, Gujarat – robust GIS system
  • Rajasthan – no separate construction permission is required in RIICO industrial area for plot sizes 40k sq. mt.

Rajasthan Best practices

• No construction permit/building plan approval is required in RIICO industrial areas for plot size up to 40,000 sq. m. And deemed approval for plot sizes greater than 40,000 sq. m. in two weeks
• RIICO does not seek any certificate for no tax dues, notarized affidavit for not staking building material on public land, NoC from Traffic and coordination department and NoC from Storm water and Drainage Department.
• Geographic Information System (GIS) for new RIICO areas which are ready for allotment have been developed.
• E-stamping facility is now available
• Sample Model Contract and Sale deed are available online
• Land records are digitized and an investor can extract copy of land records along with details of mutation from Apnakhata

3. Complying with environment procedures (Refer Graphs in the Annexure)

• National Average: 31.61%
• 1^st Position: Gujarat with 100.00%
• 2^nd Position: Andhra Pradesh with 85.19%
• 3^rd Position: Rajasthan with 70.37%
• 4^th Position: Punjab with 70.37%
• 5^th Position: Madhya Pradesh with 66.67%
• Requirements: industry categorization, green industries for which no pollution control board clearances are required, portal for registration, auto-renewal,
• Case study: Gujarat
  • Gujarat Pollution Control Board (GPCB) adopted a web based application called eXtended Green Node (XGN) to provide an IT solution
  • XGN provides hassle free, 24 X 7 anywhere e-access to businesses
  • functionality is available on mobile platform
  • e-payment facilities through RTGS
  • inspectors to be allocated online
  • important data, permissions, legal documents etc. can remain in the soft form in the database and can be retrieved by the industry whenever needed

Rajasthan Best practices

• For 88 categories of industries that are Green industries, the acknowledgement (of the receipt) of consent application (along with fee) serves the purpose of Consent.
• Portal for submission of application, registration, renewal and issuing of certificates online. This portal of RPCB allows for uploading of supporting documents required while applying for CTE/CTO.
• The certificates issued by RPCB are verifiable through a QR code. An individual can scan the QR code via phone as well and verify the details of the certificate such as name of the company and validity of the certificate.

4. Complying with labour regulations (Refer Graphs in the Annexure)

• National Average: 33.81%
• 1^st Position: Jharkhand with 100.00%
• 2^nd Position: Gujarat with 76.47%
• 3^rd Position: Chhattisgarh with 76.47%
• 4^th Position: Andhra Pradesh with 75.00%
• 5^th Position: Uttar Pradesh with 70.59%
• Requirements: portal for registration, auto-renewal,
• Case study: Jharkhand
  • comprehensive online workflow based portal facilitating
  • portal offers several functionalities including online registration, licensing and renewal under the various Labour Acts and also has a provision of computerized allocation of inspectors
  • Self-Certification for renewal and returns
  • single joint inspection in 5 years for compliance with the 14 Labour Laws

Rajasthan Best practices

• Labour Department Management System (LDMS) allows filing of applications, registrations, licenses, renewals, payments and filing of returns under 12 major labour legislations.
• Notified key amendments in Industrial Disputes Act, 1947, the Contract Labour (Regulation & Abolition) Act, 1970 and the Apprentices Act, 1961

5. Obtaining infrastructure related utilities (Refer Graphs in the Annexure)

• National Average: 32.01%
• 1^st Position: Maharashtra with 88.89%
• 2^nd Position: Gujarat with 75.00%
• 3^rd Position: Madhya Pradesh with 75.00%
• 4^th Position: Delhi with 68.75%
• 5^th Position: Andhra Pradesh with 60.00%
• Requirements: Electricity Connections, Water connections, Sewer/sewage connection, NOCs for construction permits, NOC from Storm water and drainage, NOC from Sewage department, NOC from Fire department
• Case study: Maharashtra
  • Investor friendly services for obtaining infrastructure related utilities such as electricity, water and sewage in a time bound manner
  • Detailed procedures and all inclusive checklists have been placed on the relevant websites
  • Workflow from filing an application to issuance of registration/ NoC
  • Implemented online systems to apply for the utilities
  • fixed cost estimate as part of application for obtaining electricity connection to allow investors to apply once and pay once

Rajasthan Best practices

• Application for electricity connection can also be made online through Single Window System
• Investor friendly services for obtaining infrastructure related utilities such as electricity, water and sewage in a time bound manner
• Detailed procedures and all inclusive checklists have been placed on the relevant websites
• e-Mitra is an ambitious e-governance initiative of Government of Rajasthan which has been implemented in all the districts of the state using Public Private Partnership (PPP) model for convenience and transparency to citizens in availing various services with respect to application and payment of the Government and Private Sectors under a single roof at their door step using e-platform
• At present there are more than 12,826 operational e-Mitra kiosks in the urban areas and more than 20,362 operational Common Service Centers in rural areas

6. Registering and complying with tax procedures (Refer Graphs in the Annexure)

• National Average: 48.61%
• 1^st Position: Karnataka with 97.73%
• 2^nd Position: Andhra Pradesh with 90.63%
• 3^rd Position: Rajasthan with 89.47%
• 4^th Position: Odisha with 85.29%
• 5^th Position: Madhya Pradesh with 82.50%
• Requirements: Value Added Tax, Central Sales Tax, Professional Tax, Luxury Tax, Entry Tax, Entertainment Tax
• Case study: Karnataka
  • comprehensive automation and process re-engineering – received the PM’s Award, 2011-12 – ‘Transformation of Commercial Tax Regime’
  • registration for various taxes, filing returns, paying taxes through payment gateway, receiving registration certificates (which are downloadable and verifiable), e-waybill registrations are provided through electronic mode only thereby eliminating the need for any physical touch point
  • online portal provides clear information on procedures
  • helpline has also been established to assist dealers with e-filing of returns

Rajasthan Best practices

• All processes related to registrations, assessment, filing of taxes and refunds are online
• Single ID for state commercial taxes
• State also facilitates online refund
• Professional tax has been repealed in the State
• There are no static check post and mobile squads in the states
• e-GRAS is an online Government Receipt And Accounting System which facilitates collection of tax/non tax revenue online

7. Carrying out inspections (Refer Graphs in the Annexure)

• National Average: 19.45%
• 1^st Position: Jharkhand with 72.00%
• 2^nd Position: Gujarat with 71.74%
• 3^rd Position: Andhra Pradesh with 62.00%
• 4^th Position: Chhattisgarh with 58.00%
• 5^th Position: Rajasthan with 50.00%
• Requirements: States Taxes, Construction Permit, State Labour Acts, State Pollution Control Acts
• Case study: Gujarat and Jharkhand
  • unified inspection has been provisioned by the state with regards with a number of Labour Department related Acts
  • helps businesses in complying with inspection requirements in a user friendly manner saving time and resources in individual inspections
  • transparency, the states have published comprehensive procedures and checklists for various inspections
  • implemented online systems for allocation of inspectors to increase the efficiency and effectiveness of inspections

• Prior approval from higher authorities is required for inspection by labour inspectors and any establishment can be inspected only once a year
• unified inspection has been provisioned by the state with regards with a number of Labour Department related Acts
• helps businesses in complying with inspection requirements in a user friendly manner saving time and resources in individual inspections
• transparency, the states have published comprehensive procedures and checklists for various inspections
• implemented online systems for allocation of inspectors to increase the efficiency and effectiveness of inspections

8. Enforcing contracts (Refer Graphs in the Annexure)

• National Average: 16.49%
• 1^st Position: Maharashtra with 55.56%
• 2^nd Position: Madhya Pradesh with 44.44%
• 3^rd Position: Gujarat with 33.33%
• 3^rd Position: Chhattisgarh with 33.33%
• 3^rd Position: Tamil Nadu with 33.33%
• 3^rd Position: Delhi with 33.33%
• Requirements: e-summons for commercial disputes, online payments, e-cause list for commercial disputes, issuing digitally signed court orders, e-filing for commercial disputes, specialized courts or commercial division, model contract templates/guidelines, least 80% of the vacancies, recruitment of judges
• Case study: Maharashtra
  • constituted and prescribed 7 commercial benches exclusively for the purpose of resolving commercial disputes
  • time and costs associated with various legal processes, District Courts in the state have been equipped with the provision for making online payments
  • Most vacancies for judges have been filled up in District Courts and hiring of judges is undertaken as and when vacancies are created to ensure availability of adequate capacity for dealing with various cases

< Back to Rajasthan Reforms main page