Telangana State eyes better ease of doing business rating

After faring poorly in the “Ease of Doing Business” States list issued by the World Bank in 2015, the Telangana government has stepped up efforts to improve its ranking as much as as possible by June-end. It is also bracing to compete with Gujarat, the front-runner, which won the first rank last year.

Despite its best efforts, Telangana ranked 16th in ease of doing business in 2015, whereas its sister state Andhra Pradesh stood second, next to Gujarat. Providing quicker clearances and minimising human interface by introducing online systems for processing of applications and granting various permissions and incentives to business and industry have been projected as a major hallmark of ease of doing business.

The number of documents entrepreneurs need to submit, while seeking approvals for projects has been reduced from over 100 to a mere 12 in Telangana, to make the process simpler to enable the entrepreneurs not only facilitating the process for setting up an enterprise, but also on conducting business. For instance, the mobile phone maker Micromax’s plant was set up near Hyderabad within seven months of getting the State government clearance, whereas in other States, it would have taken the company two years to do so.

Among several initiatives, the Centre has recommended the establishment of an online single window system through which all the incentives provided in the industrial policy are to be made available to the industries. Last year, the Telangana government created a single window clearance system called TS-iPass with a promise to grant all industrial approvals within 15 days.

TS-iPASS comprises clearances from 22 departments, and the State government is coming with a package of incentives for industries, based on its study of what is being offered in other States. The Telangana government has conducted several rounds of meetings with a host of departments on the progress achieved so far in implementing the steps suggested by the Government of India and the World Bank to boost investor perception and improve the ease of doing business.

On availability of land, the World Bank suggested to the government to design and implement a geographic information system (GIS) providing details about the land earmarked for industrial use and also ensure that the GIS provides details about available infrastructure such as roads and water. The Sstate government is also gearing up for this. With the implementation of these single window hassle-free measures, the State is to get good ranking in future in ease of doing business, opined industrialists who established their entrepreneurs in recent past.

Among other new initiatives, as many as six municipal corporations and about 50 municipalities would introduce ‘Online Approval System’ for issuing building and layout permissions soon to avoid delays and check corruption in the town planning wing. The municipal bodies will issue building permissions within 48 hours to industries, while the electricity department will establish SCADA systems to minimise the power interruptions in industrial areas.

The Greater Hyderabad Municipal Corporation (GHMC) has already announced introduction of online approval system for issuing building and layout permissions from June 1. Municipal Administration and Urban Development Department has proposed to introduce online approval system (Development Permission Management System – DPMS) in all urban local bodies of the state in a phased manner. Uploading master plans of all the municipalities, constitution of commercial courts and dash board for every department to ascertain the status of industrial projects would be taken up on war-footing basis in the State.

As per a CII suggestion, the government machinery has been trained to appreciate the role of industrialists in creating wealth and employment and handle the applicants and their application with more care. Post globalization, it is the private sector that is creating jobs and government must create a climate that encourage investment.

While regulatory compliance is a must, there is a need for an investor to run around offices addressing requirements of different departments, for instance, there are 44 labour laws that companies have to comply with. The compliance must be made simple and online so that the applicant does self-certification and violation can invite severe punishment, thereby reducing the pre-incorporation gestation period.

By G Rajendera Kumar