BENGALURU: Karnataka slipping to the 13th position from previous year’s 8th in Ease of Doing Business (EoDB) in the country despite topping the list in attracting investments at `1.09 lakh crore has left the government in dismay.
Urban development, law and revenue departments have proved to be the main culprits on the implementation of the Business Reform Action Plan, which contributed to the state slipping down.
Commerce and Industries Minister R V Deshpande is unhappy at the system of awarding the ranking and the parameters fixed. Speaking to reporters on Wednesday, he termed the present EoDB ranking system unrealistic.
“Andhra Pradesh, which is at the top in EoDB has attracted just `10,848 crore investment (in January-July 2016). Gujarat, which occupies the 2nd spot has received just `39,750 crore investment proposals. The performance of Jharkhand could be the eye-opener as the state is above Karnataka at 7th spot in EoDB without attracting any investment proposal,” he said.
The EoDB ranking is prepared by the Department of Industrial Policy and Promotion (DIPP) based on implementation of 340 parameters across 13 departments.
Karnataka, which scored 48.5 per cent last year, was at the 9th spot, and this year, with a compliance of 88.38 per cent, it has slipped to the 13th spot. Most of these parameters are about time-bound online clearances for implementation of an investment.
The minister wants the DIPP to broaden the parameters by including real strengths of each state while preparing the rankings.