Ease of Doing Business

Ease of Doing Business (EoDB), an index published by the World Bank is a benchmark study of the regulations across different Countries of the World. It is an aggregate figure that includes different parameters which define the Ease of Doing Business in a country.

The index is a means of measuring business regulations and its implementation across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. It provides indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.

According to the World Bank’s latest ‘Doing Business’ index, India stands at 100 out of 190 countries in the Ease of Doing Business ranking. In this regard, Government of India (GoI) had in 2015 –’16 decided to formulate strategies and steps towards creating an enabling framework for stimulating investments and growth across the primary, secondary and tertiary sectors.

Department of Industrial Policy and Promotion (DIPP), GoI had laid emphasis on simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient, effective, simple and user-friendly. Govt. of India (GoI) has been ranking States based on the Ease of Doing Business and also in getting timely clearances. The States had been ranked based on the parameters that include ease in setting up a business, registration of property, labour compliances, infrastructure availability, finance and tax issues, inspection reforms and ease in exiting business. Kerala is in the 20th position in the EoDB ranking of States done by DIPP, GoI during the year 2016 - 17.

Government of Kerala (GoK) had decided to undertake reforms to help place the State on an equal footing amongst other top ranked States and identified specific areas for improvement in various aspects of doing business in the State. The key areas identified were i) Registration, ii) Revenue iii) Municipality Building Rules iv) Panchayat Building Rules v) Survey and Land Records, where speedy reformations required for making a more conducive atmosphere for starting business. It was also decided to adopt the best practices of other States to improve the ease of doing business environment in the State.

KSIDC, being the nodal agency of the Government of Kerala, had done a study on the modification / amendments to be made in the concerned Rules and Regulations related to the existing clearance procedures in the State.

Based on the recommendations of the study report by the agency, amendments to following seven Acts were prepared by KSIDC and vetted by the concerned departments. The same was approved by the Cabinet and an Ordinance issued on 20.10.2017. Amendments to the following Rules based thereon had also been prepared by KSIDC and put up to Government; the same have been cleared by the concerned departments and are being issued shortly.

Amendments to Acts

  • The Kerala Panchayat Raj Act, 1994
  • The Kerala Municipality Act, 1994
  • The Kerala Lifts and Escalators Act, 2013
  • The Kerala Groundwater (Control and Regulation) Act, 2002
  • The Kerala Head Load Workers Act, 1978
  • The Kerala Shops and Commercial Establishment Act, 1960
  • The Kerala State Single Window Clearance Boards and Industrial Township Area Development Act, 1999

Amendments to Rules

  • The Kerala Panchayat Raj (Issue of Licence to Dangerous and Offensive Trades and factories) Rules, 1996
  • The Kerala Panchayat Raj (Profession Tax) Rules, 1996
  • The Kerala Municipality (Registration of Private Hospitals and Private Paramedical Institutions) Rules, 1997
  • The Kerala Panchayat Raj Building Rules, 2011
  • The Kerala Municipality Building Rules, 1999
  • The Kerala Factories Rules, 1957
  • The Kerala Inter-State Migrant Workers (Regulation of Employment and Condition of Service) Rules, 1983
  • The Kerala Contract Labour(Regulation and Abolition) Rules, 1974
  • The Building and Construction Workers(Regulation of Employment and Condition of Service(Kerala)) Rules, 1998
  • The Kerala Motor Workers Rules, 1962

 

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