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Home News News and Press Release Month 6 2016 2016 (6) This

Initiatives on Improving ‘Ease of Doing Business’ in India as on 7th June, 2016

14-6-2016
  • Contents

Ease of Doing Business

India’s rank in the Doing Business Report 2015 was 142 among 189 countries, which improved to 130 in the Doing Business Report, 2016. Government of India has emphasized on the importance of ‘Ease of Doing Business’ and it is a major pillar of ‘Make in India’ initiative. It is working extensively on improving India’s rank in the World Bank Group's Doing Business Study.

ACHIEVEMENTS IN DELHI AND MUMBAI

Delhi

  • Unified building Bye-laws has been notified.
  • Online registration of Value Added Tax (VAT) with real-time Tax Identification Number (TIN) allotment has been introduced.
  • Delhi VAT Sewa App has been developed whereby permanent business registration is done without need for field verification by VAT inspector. This step has eliminated instances of corruption and irregularities during field verification.
  • Commercial divisions and appellate divisions in Delhi High Court have been established.
  • Municipal Corporations have introduced fast track approval system for building permits with features such as:

I. Common application form

II. Use of digital signature for filing application and issue of permits

III. Online transfer of application and receipt of NOC

IV. Online system has been integrated with Airport Authority of India (AAI), Delhi Urban Arts Commission (DUAC), Delhi Metro Rail Corporation (DMRC) & National Monument Authority (NMA).

Mumbai

  • Requirement of inspection has been removed to make registration of Shops and Establishments real-time.
  • Commercial divisions and appellate divisions have been established in Bombay High Court.
  • VAT and Profession tax registration has been integrated into a single process.
  • Municipal Corporation of Greater Mumbai (MCGM) has introduced fast track approval system for building permits with features such as:

I. Common application form

II. Online transfer of application and receipt of NOC

III. Online system has been integrated with AAI & NMA.

  • Brihanmumbai Electricity Supply and Transport (BEST) has improved its System Average Interruption Duration Index (SAIDI) by 3% and its System Average Interruption Frequency Index (SAIFI) by 11% in the period June, 2015-March, 2106.
  • Permission for removal of Trees has been integrated with the Municipal Corporation of Greater Mumbai (MCGM) single window application system.
  • Site inspection for construction permits has been minimized by way of self- certification and introducing third party certification. During construction, submission of video clips by architects has been introduced in online Auto DCR system.
  • VAT Registration Certificate is issued within 1 working day (24 hours).
  • AutoCAD based software to scrutinize building plans has been implemented.
  • MCGM has implemented a risk based assessment framework with risk parameters in order to enable fast track approval for buildings.
  • Cost and time for obtaining construction permit has been reduced by 79.6% and 132 days respectively.
  • Property Tax can be paid through mobile app, which can be downloaded from apps.mgov.gov.in.

The Doing Business Report Ranks a Country on 10 Parameters Reforms Under Each of These Are as Follows:

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.

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.

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.

NOC/Consent to Establish is not required for getting industrial electricity connection for setting up new industries and projects.

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.

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.

DIGITIZATION PROCESS FOR REGISTERING PROPERTY

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

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.

RESOLVING INSOLVENCY

Insolvency and Bankruptcy Code Bill has been passed in the Parliament.

eBIZ PLATFORM (ONLINE SINGLE WINDOW)

  • One-stop access for Investors to know more about Investment opportunities and information on number of licenses/approvals required from Government agencies.
  • User-friendly features such as Payments through netbanking, credit & debit cards, status tracking, SMS alerts and Help-desk support enabled.
  • Single face of Government - Composite Application Form and one-time payment designed for obtaining approvals from multiple Ministries/Departments viz., Ministry of Corporate Affairs, Central Board of Direct Taxes, Ministry of Labour & Employment including Employees’ State Insurance Corporation & Employees Provident Fund Organization.
  • Elimination of multiple visits to different agencies. Investor can apply for 20 Central Government services; 14 Andhra Pradesh, 14 Odisha and 2 Delhi state Government services have been integrated with eBiz IT platform as detailed below.

CENTRAL GOVERNMENT SERVICES INTEGRATED ON e-biz PLATFORM

GOVERNMENT SERVICES INTEGRATED ON e-biz PLATFORM S. No.

Ministry/ Dept. Name

Service Name

1.

Employee’s State Insurance Corporation

Employer Registration

2.

Department of Industrial Policy and Promotion

Industrial License

3.

Department of Industrial Policy and Promotion

Industrial Entrepreneur Memorandum

4.

Ministry of Corporate Affairs

Name Availability

5.

Ministry of Corporate Affairs

Director Identification Number

6.

Ministry of Corporate Affairs

Certificate of Incorporation

7.

Ministry of Corporate Affairs

Commencement of Business1

8.

Central Board of Direct Taxes

Issue of Permanent Account Number (PAN)

9.

Central Board of Direct Taxes

Issue of Tax Deduction Account Number (TAN)

10.

Reserve Bank of India

Advanced Foreign Remittance (AFR)

11.

Reserve Bank of India

Foreign Collaboration-General Permission Route (FC-GPR)

12.

Employees’ Provident Fund Organization

Employer Registration

13.

Petroleum and Explosives Safety Organization

Issue of Explosive License

14.

Directorate General of Foreign Trade

Importer Exporter Code License

15.

Reserve Bank of India

Foreign Currency- Transfer of Shares2

16.

Department of Heavy Industry (DHI)

Issue of custom duty concession certificate to entrepreneurs under project import scheme

 

 

 

17.

Central Board of Direct Taxes (CBDT)

Changes or correction in PAN data

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

 

STATE GOVERNMENT SERVICES INTEGRATED ON e-BIZ PLATFORM Andhra Pradesh (14 Services)

 

S.No

Department Name

Service Name

 

1.

AP-Ground Water Department

Permission to draw Ground Water

 

2.

AP-Department of Factories

Approvals of plans from Factories Department

 

3.

AP-Department of Factories

Factories License

 

4.

AP-Department of Factories

Annual Filing under Factories Act

 

5.

AP-Fire Department

NOC from Fire Services Department

 

6.

AP-Department of Industries

Industrial Incentives (Power)

 

7.

AP-Department of Industries

Industrial Incentives (VAT)

 

8.

AP-Department of Industries

Allotment of Scarce raw materials

 

9.

AP-Department of Industries

MSME Registration

 

10.

AP-Department of Industries

NOC Acknowledgement from GM, DIC for MSME

 

11.

AP-Department of Drug Controller

License for manufacturing Bulk Drugs and Formulations

 

12.

AP - Department of Town & Country Planning

Permission from TCP for Site and Building

 

13.

AP-Commercial Taxes Department

VAT Registration

 

14.

AP-Commercial Taxes Department

Central Sales Tax (CST) Registration

 

Odisha (14 Services)

 

S.No

Department Name

Service Name

 

 

1.

 

Industries Department, Odisha

Project Evaluation cum Allotment of Land

 

 

2.

 

Directorate of Factories & Boilers, Odisha

Registration under Boilers Act

 

 

3.

 

Labour Directorate, Odisha

Registration under Shops and Establishment Act

 

 

4.

 

Labour Directorate, Odisha

Registration of Establishment Employing Contract Labour

 

 

5.

 

Water Resources Department, Odisha

Permission to draw Water for Industries-Ground Water & Surface Water

 

 

6.

 

Directorate of Factories & Boilers, Odisha

Approvals of Plan under Factories Act,1948

 

 

7.

 

Department of Energy, Odisha

New Power Connection

 

 

8.

 

Housing and Urban Development Department, Odisha

Permission for Site and Building

 

 

9.

 

Directorate of Factories & Boilers, Odisha

Factories License under Factories Act,1948

 

 

10.

 

Housing and Urban Development Department, Odisha

Completion cum Occupancy Certificate

 

 

11.

 

Commercial Taxes Organisation, Odisha

VAT Registration

 

 

12.

 

Commercial Taxes Organisation, Odisha

CST Registration

 

 

13.

 

Odisha State Pollution Control Board

Consent to Establish

 

 

14.

 

Odisha State Pollution Control Board

Consent to Operate

 

Delhi (2 Services)

S.No.

Department Name

Service Name

1.

Factories Department

Factory Filling

2.

BYPL (BSES Yamuna Power Limited)

New Power Connection

 

 

COMPOSITE APPLICATION FORMS INTEGRATED List of joined-up (L3) services

S.No.

Service Name

Department /Ministry

1.

INC-29 with 7 services viz., Name Availability (MCA), Director Identification Number (MCA), Certificate of Incorporation (MCA), PAN (CBDT), TAN (CBDT), Employer registration of EPFO and ESIC

Ministry of Corporate Affairs, CBDT, EPFO & ESIC

2.

INC-7 with 5 services viz., Certificate of Incorporation (MCA), PAN (CBDT), TAN (CBDT), Employer registration of EPFO and ESIC,

Ministry of Corporate Affairs, CBDT, EPFO & ESIC

3.

5 registration services under Employer registration under EPFO and ESIC Act, Contract Labour Act, Building and other Construction Workers Act, and Inter-state Migrant Workmen Act

Ministry of Labour & Employment

 

1 Withdrawn from eBiz Portal w.e.f 15.07.2015 pursuant to the Companies (Amendment) Act 2015.

2 FC-TRS an additional service integrated and launched with eBiz portal w.e.f 24.08.2015.

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