Punjab chief minister (CM) Captain Amarinder Singh has introduced fresh reforms to reduce the regulatory burden on MSMEs through rationalisation, digitalisation and decriminalisation of the regulatory landscape, enabling entrepreneurs to focus on expanding their operations.
“The reforms on removing imprisonment terms, building flexibility and reducing oversight in the labour rules, and pursuing a data driven assessment of service delivery delays are all centered around making entrepreneurship easier in Punjab,” said the CM.
He said with these reforms, commitments had been set for future changes in MSMEs, including rationalising trade license with shops and establishments act and removing imprisonment terms from 100 low risk provisions in non-labour related rules.
The CM announced that the number of labour registers will be reduced, requiring an entrepreneur to maintain from 60 to less than 14, and flexibility enhanced in hiring women employees. Discretionary powers of inspectors are being removed with regard to deductions related to absence or leave, which will be deduced from labour registers going forward. These changes will be incorporated in the new State Rules.
To ensure timely delivery of key licenses and permits, as prescribed under the Transparency Act 2018, government has begun a monthly data driven assessment mechanism under the Chief Secretary to make sure no license or permit is delayed beyond the stipulated period.
It is also proposed to reduce the number of pre-commissioning licenses & NOCs to start a business by at least 20%, so the government, without due cause, never inhibits an entrepreneur to start a new shop or factory, with the possibility of doing this entirely online being explored. In addition, changes will be made in Land Use for starting new business and mechanisms will be developed for timely and hassle-free water, electricity and sewage connections.
The reforms, launched in partnership with GAME (Global Alliance for Mass Entrepreneurship) and Omidyar Network India, prioritise Ease of Doing Business (EoDB) for MSMEs in the state, based on data-informed regulatory changes. The reforms were suggested by the GAME EoDB Task Force’s report titled “Transforming EoDB for MSMEs in Punjab”. The Task Force was set up on the recommendation of the Montek Ahluwalia committee, set up by the state government to revive business in the post-Covid environment.
GAME is an alliance of organisations that aim to catalyse a nation-wide entrepreneurial movement which enables growth and mobility of existing and new enterprises, 30% of which are women owned, to create jobs.
