Policies & Reforms in Bangaru Telangana

Policies & Reforms in Telangana
The government of Telangana in the last 19 months had progressively made reforms in policies, processes and the Governance, on the whole, to enhance the business ecosystem in the state across sectors in a simplified manner. The aim of the Government is to increase the potential to run businesses in the State, which in turn would help the growth of the state’s economy. The focus of these reforms is to ensure the ‘Ease of Doing Business’ is attained in its true sense.

Three most impactful reforms made by the State Government to enhance Ease of Doing Business in the last 18 months:
Industrial Policy Frame Work
Telangana State Government has launched an “Industrial Policy Framework of the state “in the year 2015 - It lays out the framework on how the industrial activity will be promoted in the State. The new Telangana State Industrial Policy strives to provide a framework which will stabilize and make existing industries more competitive, and also attract and realize new international and national investments in the industrial sector. The focus is on core manufacturing sectors, with the creation of employment for urban and rural youth and adding value to existing skills emphasised at all stages. It is expected that the most significant outcome of this approach will be the production of high-quality goods at the most competitive price, which will establish “Made in Telangana- Made in India” as a brand with high global recognition. Some of the salient features of the Industrial Policy framework are shown below,
Salient Features of New industrial Policy Framework:

• Minimum inspection and Maximum facilitation
• Effective Industrial clearance mechanism through innovative ICT solution called TS-iPASS
• Right created for delivery of single window services. If the Right is violated, there is a penalty provision, on the lines of the Right to Information Act. Accountability will be established among the officials through the creation of this Right.
• 1.5 lakh Acres of readily available industrial land bank
• 10 % of water from Irrigation sources is reserved for industries. Allocations up to 0.2 TMC per unit does not require any clearance from irrigation department.
• 24/7 power supply
• Approvals to Mega Projects(with investments more than Rs.200 Cr.) within 15 days
• Focus on 14 identified thrust areas and core sectors
• Special focus on SME’s/ Micro industries
• Ancillary/ Vendor development
• Preventing Incipient Sickness among SMEs

Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS):
The government of Telangana has enacted the Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS) act. Telangana is the only state in the country that has made it a right to get industrial clearances.
Salient features of the TS-iPASS system:

1. Approvals based on Self-certification by the applicant.
2. End-to-End online System where an investor will be guided in each step, can upload the required documents, make online payment, track status of approvals, view and download the issued approvals
3. Model documents to be attached are provided on the Web portal.
4. The number of attachments were reduced to 10 which are common to all departments
5. The portal provides for online pre-scrutiny of applications within 72 hours. This ensures that the applicant is informed of any shortfalls before making payment.
6. Clearances are issued online which can be downloaded by the applicant and verified by any third party.
7. The applicant is entitled to know the reasons for the delay in getting the clearance within time limits.
8. Provision for imposing penalties on the officers who failed to accord clearance within time limits
9. Chasing Cell
10. Government of Telangana constituted an Industry Chasing Cell in the office of Hon’ble Chief Minister which focuses on major investments and investments which are of strategic importance with the following key functions:
11. Address all protocol requirements and facilitation services for identified potential investors.
12. Coordinate with various agencies and ensure timely approvals as per Telangana State Industrial Project Approval and Self-Certification System (TS-iPASS).
13. Provide effective facilitation to implement “Right to Clearance”.
14. Provide requisite facilitation to the industry until it is established and goes on stream in accordance with TS-iPASS timelines.
15. Identify process constraints at various stages of setting up of new industries / expansion/ revival etc., and make recommendations for streamlining.

Document the best practices across the Globe and provide high-quality inputs on policy and practice to Telangana State.
Impact of the Reforms
Our initiatives have been very well appreciated and accepted by various industrialists/ businessmen in the state. Under the strong leadership, the state has developed a Vision to enhance its growth multi-fold.All the permissions/ clearances are given according to the time lines. A maximum of 30 days are fixed for obtaining any state clearances, however, the permissions are accorded much earlier.

For example –
M/s. Amazon India Ltd. was accorded all pre-establishment clearance within 15 days.
M/s. Bhagwati Products Ltd., (Micromax Mobile Manufacturing Company) got all the approvals within 15 days including allotment of Land in September 2015. The unit is planning to commence its production in January 2016.
The least possible Turn-Around-Time (TAT) for Consent of Establishment for all major industries in only 15 days.

Key Reforms under implementation
Labour Reforms
Filing of applications and issue of approvals, renewals and inspections under all labour acts are being made online.
Joint inspection system on risk base is under evaluation. Low-risk establishments will be inspected only once in 10 years, medium risk once in 5 years, and high risk once in a year. These inspections will be carried out jointly by all the departments viz., Labour, Factories, Boilers etc., which require inspection. Previously all units irrespective of the level of risk has to undergo multiple inspections by many departments
The schedule of inspections will be determined through online computer-based risk management system.
Introduction of Self-Certification and third party inspection system in Boilers Department

Development Permission Management System (DPMS)
As a part of ongoing Ease of doing Business initiative by Telangana Government to create a conducive business environment for the new and existing investors in the state. The State Government is under the mission to simplify the current procedures for providing approvals adopted by various departments in the state. Under this scenario, Hyderabad MetropolitanDevelopment Authority (HMDA) has recently come up with an innovative ICT solution called “Development Permission Management System” (DPMS) an online portal where a common citizen/business organization is empowered to know approval procedures, end-to-end assessment process from HMDA and other linked departments.

Key Outcomes of DPMS
Increased Citizen Satisfaction by providing 24X7 online services
Transparency provided into the end-to-end assessment process & also ensure data integrity
Ensures uniformity and adherence to DCR guidelines through automation of technical scrutiny.
The number of visits to the HMDA department is reduced
Increased Efficiency and quality of services
Simplification of procedures and processes
Project Development Agreement(PDA) enabled Site inspection
Increased Accountability and Timely delivery of services
Real time information on dashboards to make better and faster decisions
Integrated document management process for easy storage and retrieval of digital documents at any date.
Integrations with Payment Gateways, GIS, Master plan, Website and RTI - Real-time access to data
Maintenance of comprehensive Data & Information Systems.
Industry-institution Interface
The government of Telangana took the responsibility on its shoulders for providing trained and skilled manpower according to the Industries’ requirements. The government is planning to take Industry Specific Skill development programmes in consultation with the Industry so that the trained candidates meet industry requirements. Modalities for interfacing the Industries and Institutions Accordingly are being worked out by a High-Level Task Force committee under the Chairmanship of the Chief Secretary.