NEW DELHI: As many as twenty states have implemented the ease of doing business reforms so far to raise additional financial resources of Rs 39,521 crore through open market borrowings, said the finance ministry on Saturday.
Most recently, five more states — Arunachal Pradesh, Chhattisgarh, Goa, Meghalaya and Tripura — have completed the reform process of “Ease of Doing Business” stipulated by the Department of Expenditure. With this, the total number of states that have successfully completed the reforms has reached to 20, the ministry noted. “Accordingly, on receipt of recommendations from the Department for Promotion of Industry and Internal Trade (DPIIT), the Department of Expenditure has granted permission to these states to raise an additional Rs 39,521 crore through open market borrowings,” a official statement from the finance Ministry stated.
States completing ‘Ease of Doing Business’ reforms are eligible for additional borrowing of 0.25 per cent of Gross State Domestic Product (GSDP). Earlier, Gujarat, Uttar Pradesh, Uttarakhand, Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala Rajasthan, Tamil Nadu, Odisha, Punjab and Telangana had also reported completion of this reform, which was confirmed by DPIIT.
The ease of doing business is an important indicator of the investment-friendly business climate in the country. As such, the central government had in May 2020, decided to link grant of additional borrowing
permissions to states who undertake the reforms to facilitate ease of doing business.
The reforms included— completion of first assessment of ‘District Level Business Reform Action Plan,’ elimination of the requirements of renewal of registration certificates/approvals/licences obtained by businesses under various Acts, implementation of computerised central random inspection system under the Acts wherein allocation of inspectors is done centrally, prior inspection notice is provided to the business owner, and inspection report is uploaded within 48 hours of the inspection.