The Gujarat government has embarked on a comprehensive initiative to introduce significant procedural reforms across multiple departments, aiming to substantially improve the Ease of Doing Business (EoDB) landscape in the state. This strategic move aligns with the Centre's broader plan, as the Central Deregulation Cell has actively encouraged states to implement reforms designed to reduce the regulatory burden on businesses and entrepreneurs.
Cabinet Presentation and Implementation Timeline
A detailed presentation outlining these proposed reforms was made during the state cabinet meeting held on Wednesday. According to senior government officials, the implementation of these changes is expected to commence by April, with the entire reform exercise targeted for completion by June. This structured timeline underscores the government's commitment to creating a more business-friendly environment in a timely manner.
Key Departments Targeted for Reform
The reforms will specifically target compliance requirements in several crucial departments, including:
- Education
- Energy and Petrochemicals
- Food, Civil Supplies and Consumer Affairs
- Industries and Mines
- Labour and Employment
- Revenue
- Urban Development and Urban Housing
Gujarat Industrial Development Corporation (GIDC) Reforms
For the Gujarat Industrial Development Corporation, the recommendations focus on optimizing land use within both existing and upcoming industrial clusters. The proposed measures include revisiting the industrial area allotment policy to create more flexible provisions for Micro, Small, and Medium Enterprises (MSMEs). Specific changes under consideration involve:
- Enabling land parcel pooling and splitting
- Allowing mortgages on industrial plots
- Permitting land-use changes when businesses evolve
- Converting leasehold properties to freehold
- Providing greater flexibility for subleasing, transferring, selling, or reassigning industrial plots, including transfers to joint ventures and subsidiaries
Additionally, the recommendations include provisions for permitting low-cost and Economically Weaker Section (EWS) housing within designated industrial areas, addressing both industrial and social development needs.
Education Department Reforms
In the education sector, the proposed reforms aim to streamline processes for private educational institutions. Key recommendations include removing the essentiality certificate requirement and reducing other certification burdens for private schools. The government is also considering revising land requirement criteria to make the establishment of educational institutions more accessible.
Energy and Petrochemicals Department Reforms
For the energy and petrochemicals department, the focus is on accelerating service delivery. Recommendations include speeding up the release of electricity connections for both residential and business consumers. A significant proposed change involves removing the requirement for field inspections for power connections, which could dramatically reduce waiting times for new connections.
Industries and Mines Department Reforms
The industries and mines department reforms propose compiling a comprehensive list of testing facilities available in state institutions, making them more accessible to MSMEs. Another critical recommendation involves removing double licensing requirements for MSMEs, eliminating redundant bureaucratic hurdles.
Broader Regulatory Simplification
Sources indicate that the government is considering amending municipal or other applicable laws to eliminate dual licensing for similar compliance requirements. This would affect various sectors including:
- Spas and salons
- Police clearances
- Signage permissions
- Social function licenses
- Peg measures
- Swimming-pool No Objection Certificates (NOCs)
- Discotheque NOCs
- Liquor licenses
Single Window System and Self-Certification
The reforms also propose designating a single nodal agency within the state's Investment Promotion Agency or Investment Promotion Board. This agency would handle all pre-establishment, construction, connection, and operational approvals within notified industrial areas and parks, creating a more efficient single-window system.
Furthermore, states have been advised to expand self-certification and declaration-based approvals and inspections. This would include:
- Consent to Establish (CTE) and Consent to Operate (CTO) for white and green-category industries
- Sanitation certificates
- Verification and stamping of low-risk commercial weights-and-measures instruments
These measures represent a significant shift toward trust-based regulation, reducing the need for frequent physical inspections and paperwork.
