THIRUVANANTHAPURAM: Sending a positive message to prospective investors who will attend the two-day Invest Kerala Global Summit that begins in Kochi on Friday, the state government on Thursday announced major reforms to boost the state’s ‘ease of doing business’ initiative. The measures include doing away with the need for obtaining panchayat licence for a section of industrial ventures.
Local Self-Government (LSG) Minister M B Rajesh told reporters that the reforms aim to modernise existing rules especially in the industrial and commercial sectors. The plan is to revise the Kerala Panchayat Raj (Licensing of Factories, Trades, Enterprises and other Services) Rules, 1996, to streamline licensing procedures and encourage entrepreneurship.
Rajesh said the LSG department implemented 47 reforms in 2024, including changes in regulations and procedures. He said the reforms played a crucial role in improving the state’s ranking in ‘ease of doing business.’
“One of the key indicators of this ranking is the quality of service delivery in municipalities and corporations where the state has achieved the top position. The K-SMART system is expected to play a crucial role in boosting ‘ease of doing business’.
Since inception, K-SMART has been developed with a business-friendly approach, incorporating timely changes. The rolling out of K-SMART in panchayats by April will further boost the business-friendly environment in the state,” Rajesh said.
The new reforms, which aim to foster entrepreneur-friendly environment, includes hassle-free licence for modern enterprises, classification of businesses into Category 1 (factories and similar industries) and Category2 (commercial, trade and service enterprises), permission to use upto 50% of residential building for commercial activities, revision of norms to promote small homemade businesses and other commercial services operated from residences and more.
Rajesh clarified that panchayats only need to have information about establishments classified under Category 1 in the industrial sector, and no licence is required to operate such establishments.
However, for non-industrial Category 1 enterprises, prior approval from the panchayat is necessary. Rajesh emphasised that panchayats do not have the authority to deny permission for such businesses. Instead, they should grant approval while specifying necessary conditions.
On the allegation that the amendments aimed at helping establish breweries in the state, Rajesh said the reforms had nothing to do with the Elappully brewery row.
“This has nothing to do with breweries. That is not the subject before us and I do not intend to answer such questions,” he said.