Maharashtra eases rules for setting up a business

MUMBAI: In a move that would ensure ease of doing business in the state, Maharashtra chief minister Devendra Fadnavis has announced a number of reforms that would make it easier for corporates to set up businesses in the state. The state government has simplified norms for setting up a factory.

It has decided to amend the Maharashtra Factories Rules, 1963 under which the state would grant a licence to register the factory within three working days.

Similarly , the proposed amendments to the registration by the labour department also stipulate that the licensing officer should issue or reject a licence within three days from the date of application.

"If the licence is not issued within three working days, it shall be deemed to have been granted and the copy of the receipt of application along with the copy of payment shall be treated as licence or renewal certificate," said Maharashtra Contract Labour (Regulation and Abolition) Act's draft rules.

A top labour department official said that the move would ensure that there are no delays due to bureaucratic red tape. "We are going in for a self-certification compliance process. Once papers are in order, and if there is a delay for more than a day, then it is deemed that the conveyance has been given," said the official.

The state government has also proposed similar conditions for setting up shops and other establishments -the inspector has to grant or refuse permission for registering a shop or an establishment within three working days after the application has been filed.

While these are draft rules and may take at least 30 days more to being amended into an Act, the chief minister has already started working on them. On November 3, tyre maker Ceat approached the CM seeking to set up a unit at MIDC's Butibori Estate in Nagpur. On the same day, Ceat was given a Letter of Intent (LoI) by the state government. The firm is planning to invest Rs 400 crore, creating 1,200 jobs.

On Monday , Fadnavis in the state assembly said that Maharashtra tops in ease of doing business. India is at 180th place on the parameters of doing business. Mumbai and Delhi were taken as goal posts for arriving at these criteria, he said.