Kerala to push for industry-friendly tag
Ease of doing business to be improved; Laws simplified and unified; Regional bodies to lose a few powers.
Thiruvananthapuram: The Cabinet on Wednesday took a slew of measures to create an industrial friendly environment in the state.
Under one of the measures, the Kerala Investment Promotion and Facilitation Act, the government plans to set up Investment Promotion and Facilitation Centre comprising KSIDC officials and staff of departments concerned to strengthen the single widow clearance system. District panels will be constituted under Collectors with representatives from various departments concerned to put in place a mechanism at the district level.
The Cabinet also accepted the recommendation to bring out a common application form by unifying application forms of departments concerned.
Cabinet decided to take steps to enhance Kerala's ranking in the “Ease of Doing Business” indicator, finalised by the World Bank based on environment friendly atmosphere prevailing in different countries. It will be one of the focus areas for Kerala as the Cabinet decided to enhance its ranking there.
The Central government’s Department of Industrial Policy and Promotion (DIPP) has started a system of ranking states based on parameters like time bound permission and facilities being provided to industrialists.
A maze of laws namely Kerala Panchayat Act, Kerala Municipality Act, Building Rules, Kerala Lifts and Escalators Act, VAT, Water Control Act, Kerala Factories Rules, Headload Workers Act, Shops and Commercial Establishment Act, Inter State Migrant Workers Regulation Rules, Kerala Contract Labour Act, Kerala Motor Workers Rules will be amended and made more simple and industrial friendly. The state government has decided to unify and amend various laws.
Regional institutions will lose discretionary powers to issue or cancel industrial licences once the proposed amendment to rules is accepted. Decisions on such matters will be taken based on reports submitted by departments concerned.
The clearance of District Medical Officer will be required only for hospitals, paramedical institution and health related institutions. The time limit for setting up factories will be reduced.
There will be no need for prior permission for establishing industries coming under the Green and White categories. The licences will be renewed automatically once the prescribed fee is deposited. Clear guidelines will be laid down for resolving complaints related to industry.
The government is planning to bring amendments to avoid blind issuance of stop memos to industries. The existing licence period is one year which will be extended to five years. Amendment to all rules will be subject to scrutiny by law department.