THIRUVANANTHAPURAM: In a move to facilitate a legal environment for speedy industrial clearances, the government has decided to introduce a new ordinance - The Kerala Investment Promotion and Facilitation Act 2017. The legislation, to be brought in by amending seven legislation and many rules, is aimed at improving state’s ranking regarding ‘ease of doing business’. The Cabinet on Thursday decided to recommend the Governor to promulgate the ordinance.
Once the legislation comes into effect, clearances would be issued in a speedy and efficient manner. The validity of industrial licences would be five years instead of one year. In case of clearances getting delayed for more than 30 days, applicants will get deemed licence. If misrepresentation of facts are found the legislation recommends for stringent action, including hefty fines.
“The new legislation will empower industrialists by ensuring them a legally feasible environment. At the same time, it recommends for major action against those who provide false information. Also there are provisions to prevent stop memos being issued with vested interests. Before issuing a stop memo, the panchayat secretary should seek reported from technical officer concerned. Based on the report only action can be taken,” said a senior official.
Seven legislation - Kerala Panchayat Raj Act, Kerala Municipality Act, Kerala Ground Water Control and Regulation Act, Kerala Lifts and Escalators Act, Kerala Shops and Commercial Establishment Act, Kerala Headload Workers Act and Kerala State Single Window Clearance Boards and Industrial Township Area Development Act - would be amended in addition to about 10-12 rules.
The legislation is being introduced as part of improving Kerala’s ranking in terms of ‘Ease of Doing Business’. The deadline for bringing in amendments in legislation is scheduled to end on October 31.
The new amendments would be uploaded on the websites of departments concerned. Later it should be reported to the Central Government’s Department of Industrial Policy and Promotion (DIPP). Based on the new amendments the DIPP will review the state’s ranking.
Kerala was ranked number 20 with respect to ‘ease of doing business.’ Following this the Industries Department launched dedicated efforts to improve the state’s ranking. As part of the effort, the KSIDC held discussions with various departments. Meanwhile, efforts are on to prepare a common application form for industrial licences, an online portal called ‘swift’ to upload this application and an intelligent software to ensure speedy issue of licence for building construction.