Chhattisgarh Assembly passes Ease of Doing Business Bill 2026 to simplify approvals, boost investment

The new Act will aim to end the annual renewal of business permissions, replacing it with simpler risk-based compliance tracking.
Chhattisgarh legislative assembly image used for representative purpose.
Chhattisgarh legislative assembly image used for representative purpose. (File Photo | Express)
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RAIPUR: In a singular move to eliminate bureaucratic red tape, the Chhattisgarh Assembly on Thursday passed the Chhattisgarh Ease of Doing Business Bill, 2026, aimed at simplifying regulatory processes and encouraging investment.

The legislation makes Chhattisgarh the first state to establish a business permission system rooted in trust and driven by a risk-based classification of industries. The law is specifically designed to slash compliance costs, cut administrative delays, and empower entrepreneurs, particularly those running small and medium businesses.

Under the new Act, businesses will no longer be treated with a one-size-fits-all approach. Instead, they will be classified by their size and the nature of their activity into specific risk categories. While large industries will benefit from strict time-bound deemed approvals, smaller, low-risk, and low-investment enterprises will see heavily streamlined and accelerated processes.

The Chhattisgarh Ease of Doing Business Act, 2026, marks a defining milestone in the state’s journey toward creating a transparent, predictable, and highly entrepreneur-friendly economic environment, said Chief Minister Vishnu Deo Sai.

The Act dismantles the traditional culture of repetitive checking and introduces extensive compliance reliefs. The gruelling process of renewing business permissions every single year has been eliminated, replaced instead by simpler, risk-based compliance tracking.

Repeated government inspections are being substituted with self-certification. Entrepreneurs can now simply declare that they meet the required standards or provide a certificate from a qualified professional (such as a licensed engineer, architect, or chartered professional).

If a government department fails to act upon a business application within the officially notified timeframe, the permission will automatically be deemed approved, ensuring bureaucratic delays cannot stall economic growth.

For Micro, Small, and Medium Enterprises (MSMEs), everyday necessities are now simplified. Water connections will be granted based on self-declaration, society or firm registrations will follow a strict time-bound process, and building plans can be approved instantly via professional certification.

The sweeping reform immediately brings 43 services across eight different government departments under this simplified framework. To keep the system dynamic, additional services can be added in the future with the approval of the Executive Council.

To ensure flawless execution, the state has established a robust three-tier oversight structure. A high-powered Council headed by the Chief Minister will provide overarching direction. An implementation committee led by the Chief Secretary will monitor statewide compliance. An empowered committee headed by the respective District Collector will oversee local execution.

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