The government on Sunday stated it has permitted 5 states viz., Andhra Pradesh, Karnataka, Madhya Pradesh, Tamil Nadu, and Telangana, to cumulatively borrow an extra Rs 16,728 crore by means of the open marketplace towards ease of undertaking enterprise in their respective geographies. The government had decided in May this year to hyperlink grant of extra borrowing permissions to states finishing the stipulated reforms to facilitate ease of undertaking enterprise. While Tamil Nadu has been permitted to borrow Rs 4,813 crore, Karnataka has been permitted to borrow Rs 4,509 crore. Andhra Pradesh, Telangana, and Madhya Pradesh can borrow Rs 2,525 crore, Rs 2,508 crore, and Rs 2,373 crore respectively, Finance Ministry stated in a statement.
The reforms stipulated by the government integrated completion of the 1st assessment of the district level Business Reform Action Plan (BRAP), eliminating the want to renew registration certificates/approvals/licences for several activities beneath Shops & Establishment Act, Contracts Labour (Regulation and Abolition) Act, 1970, Factories Act, 1948, Legal Metrology Act, Inter-State Migrant Workmen (RE&CS) Act, 1979, Drug Manufacturing/ Selling/ Storage License, and Trade License issued by municipal corporations.
Another reform mandated was the implementation of computerised central random inspection program beneath several acts wherein allocation of inspectors is carried out centrally and the similar inspector is not assigned to the similar unit in subsequent years. Also, prior inspection notice has to be supplied to the enterprise owner, and the inspection report is uploaded inside 48 hours of the inspection. The acts integrated Equal Remuneration Act, 1976, Minimum Wages Act, 1948, Shops and Establishments Act, Payment of Bonus Act, 1965, Payment of Wages Act, 1936, Payment of Gratuity Act, 1972, Contract Labour (Regulation and Abolition) Act, 1970, Factories Act, 1948, Boilers Act, 1923, Water (Prevention and Control of Pollution) Act, 1974, Air (Prevention and Control of Pollution) Act, 1981 and Legal Metrology Act, 2009 and Rules.
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The government had on May 17, 2020, elevated the borrowing limit of states by 2 per cent of their gross state domestic item to support them fight Covid-induced challenges, the ministry stated. 50 per cent of this specific dispensation for states was linked to carrying out 4 citizen-centric reforms like implementation of One Nation One Ration Card System, ease of undertaking enterprise, urban regional body/ utility reforms, and energy sector reforms. So far, although 10 states have been capable to implement the One Nation One Ration Card System, 5 states have carried out Ease of Doing Business reforms, and only 2 have undertaken regional body reforms.
Apart from finding permission for extra borrowing, states implementing 3 out of the 4 reforms would be eligible for additional economic help beneath the Scheme for Financial Assistance to States for Capital Expenditure. The government has earmarked Rs 2,000 crore for the similar. Moreover, the Department of Expenditure had lately extended the deadline for states to full citizen-centric reforms in several sectors. “Now, if the recommendation from the nodal Ministry concerned regarding the implementation of the reform is received by 15th February 2020, the state will be eligible for reform linked benefits,” the ministry added.