SRINAGAR
In a damning find that the state government may have to tackle in the forthcoming budget session, J&K has been ranked at 32 among India’s 36 states assessed for investment in industry and business. The assessment was done by World Bank and Department of Industrial Policy and Promotion (DIPP) on basis of 340-point Business Reform Action Plan (BRAP) for States/UTs.
The BRAP envisaged bench-marking reforms on 58 regulatory processes, policies, practices or procedures spread across 10 reform areas spanning the lifecycle of a typical business.
The study, the final findings of which are being released in later November, has put J&K in fourth category of states including Kerala, Goa, Tripura, Daman & Diu, Assam, Dadra & Nagar Haveli, Puducherry, Nagaland, Manipur, Mizoram, Sikkim, Arunachal Pradesh, Chandigarh, Meghalaya, Andaman & Nicobar Islands, and Lakshadweep. All these states have scored below 40% on basis of the date and details they submitted to the study portal. Unlikely other three categories of states, this section requires to a major jump to catch up in reforms for business and investment.
Top category of states having scored 90 to 100% include Andhra Pradesh, Telangana, Gujarat, Chhattisgarh, Madhya Pradesh, Haryana, Jharkhand, Rajasthan, Uttarakhand, Maharashtra, Odisha, Punjab. The study terms them as leaders.
The states of Karnataka, Uttar Pradesh, West Bengal and Bihar having scored 70-90% score have been termed as ‘aspiring leaders’ by the joint study.
With 40 to 70% scores, the states of Himachal Pradesh, Tamil Nadu and Delhi make third category states which require acceleration.
At least 32 State and UT Governments had submitted evidence of implementation of 7,124 reforms. These submissions were reviewed by the World Bank team and validated by DIPP’s team to study whether they met the objectives of the BRAP. The portal allowed for collaborative dialogue between DIPP and the State Governments in finalizing the evidence submitted. A total of 6,069 reforms were approved as implemented or not applicable on the portal.
The results of the assessment demonstrate that States have increasingly risen to addressing the challenge of making it easier to do business. The national implementation average stands at 48.93%, significantly higher than last year’s national average of 32%. This demonstrates the great progress made by States this year, a statement issued by the Press Information Bureau said.
Here are the highlights of the study:
Single Window Systems: Various States have created a dedicated body/bureau as a one-stop system for State level regulatory and fiscal incentive approvals. The online single window system has a provision for filing applications, payment, status tracking, online scrutiny and approval of applications. The officials of the Body/Bureau have also been given powers to grant approvals. States which have performed better on this count include Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, Uttarakhand
Tax reforms: States have made good progress in tax reforms. These include mandating e-registration for Value Added Tax (VAT), Central Sales Tax (CST), Professional Tax, Entry tax, etc, allowing online payment and return filing; providing e-filing support through service centers and helpline and risk-based tax compliance inspections. States that have done better on this front include Bihar, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, and West Bengal
Construction permits: Many States have allowed applicants to apply online and upload building plans for automated construction permit approval. In addition, several states have developed AutoCAD-based systems that automatically scan building plans and monitor compliance with the building bye-laws and building codes in force. The states that figure at top on this front include Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, and Uttrakhand
Environment and labour reforms: States have also implemented advanced automated solutions to deal with environmental and pollution related applications and approvals. These solutions provides hassle free, 24 X 7 e-access to businesses to apply online, track applications, file returns and statements and get online permissions under various Acts and regulations. The states of Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal are the best performing states on this count.
Inspection Reforms: A number of inspection reforms with regard to labour, tax and environment related compliance’s have been introduced across the States to help businesses comply with inspection requirements in a user-friendly manner. To bring in transparency, the states have also published comprehensive procedures and checklist for various inspections and have implemented online systems for allocation of inspectors to increase efficiency and effectiveness of the procedure. The study has credited the states of Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Punjab, Rajasthan, Punjab, Telangana, Uttar Pradesh, and Uttarakhand for doing better on this front.
Commercial disputes and paper-less courts: There has been significant progress this year in the area of judicial reforms compared to last year, particularly due to the passage of the Commercial Courts, Commercial Divisions and Commercial Appellate Divisions Act. To address the concern of time and costs associated with various legal processes, District Courts in various states have also made the provision of making online payments, e-filing and e-summons. Few States have also filled up vacancies in District Courts/commercial courts to ensure availability of adequate capacity for dealing with various cases. The states of Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Rajasthan, and Telangana have done leading performance on this count.
J&K’s failure in not figuring anywhere in the study indicates that the idea of ‘ease of dong business’ has to be chased vigorously to get to the next level.
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