DIPP panel suggests steps to cut down multiple permissions

A government-constituted expert committee has suggested introduction of credible third-party certification in most areas of regulation and adopting global best practices for emission norms, among other steps to cut down on multiple permissions needed by investors.

It has also recommended that there is a need for a standing institutional mechanism within the government for an independent regulatory impact assessment.

The expert committee was constituted by DIPP to examine the possibility of replacing multiple prior permissions with a pre-existing regulatory mechanism with adequate safeguards.

"This process should take a fair and balanced view regarding what is good for business and consequently wealth creation and employment generation on the one hand, and public welfare considerations such as consumer protection, safety, preservation of environment and interest of labour, on the other," it added.

For start-ups, the committee has suggested that steps like earmarking of mixed land use redevelopment or greenfield development; exempting them from the requirement of seeking building plan approvals would give a boost to the ecosystem.

"Start-ups may be given the special dispensation of complying with labour laws on their own without being subject to inspection and/or enforcement for a period of three years, or, till their workforce exceeds 100, which ever is earlier," the 75-page report said.

It also said that any inspection of a start-up should be done only with the permission of an officer at a sufficiently higher level and that too, in cases of actionable complaints.

The 11-member committee chaired by former Secretary in the Department of Industrial Policy and Promotion (DIPP) Ajay Shankar has recommended the way forward for creating an investor friendly pre-existing regulatory framework replacing multiple prior permissions with adequate safeguards for making India one of the most attractive investment destinations.

It has suggested the ministries of environmentally sensitive sectors such as power, petrochemicals, pharma and steel should join with the Ministry of Environment and Forests and prepare a 20 year perspective geographical plan indicating preferred locations in prioritised categories for their anticipated projects, so that the negative impact of environment is minimised.

The other members of the committee are - Siddhartha Sibal of Accenture; CII's Secretary General Chandrajeet Banerjee; Manoj Kumar Singh, Joint Secretary in the Ministry of Environment & Forests, and Alok Kumar, Joint Secretary in the Ministry of Labour and Employment.

All these recommendations are aimed at promoting ease of doing business in the country.