Kerala tweaks laws to improve business ranking

In a bid to improve the state’s position in the Ease of Doing Business index, the Kerala government has introduced crucial changes in the Kerala Panchayat Raj Act, the Kerala Municipalities Act, the c

KOCHI:In a bid to improve the state’s position in the Ease of Doing Business index, the Kerala government has introduced crucial changes in the Kerala Panchayat Raj Act, the Kerala Municipalities Act, the corresponding building rules, and a host of other Acts and rules relevant to granting clearances.

“The reforms are introduced to improve micro and macro factors contributing to the successful running of the business environment in the state,” said additional chief secretary Paul Antony. As a part of the reforms, an Investment Promotion and Facilitation Cell has been constituted to facilitate smooth interaction with applicants and issuing speedy approvals. Further, an online single-window clearance mechanism including online common application form has also been introduced which will have the power to issue composite clearances that will be binding on all departments.

“One of the key reforms is the mandating of specific time limits (15 days) for issue or rejection of licences beyond which deemed licences will be issued,” said Paul Antony.The government has also initiated measures to curb the power of the local bodies to issue stop memos to industries that have obtained all statutory approvals, on complaints about nuisance created by the venture. Instead of issuing stop memo immediately, the local body has to seek prior expert opinion from the departments concerned “The name of the licences for running enterprises in the state has been changed to a more industry-friendly, removing all negative connotations. The need for NOC from the DMO for undertaking all activities has been restricted in order to reduce the cumbersome clearance process and the associated paperwork,” Kerala State Industrial Development Corporation MD M Beena said. 

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