Follow global best practices to avoid multiple regulations: DIPP panel

27 February 2016

An expert committee set up by the government has suggested introduction of credible third-party certification and adoption of global best practices for most areas of regulation, including emission norms, among other steps to relieve investors of the trouble of obtaining multiple clearances for projects.

The committee constituted by the Department of Industrial Policy and Promotion (DIPP) to examine the possibility of replacing multiple prior permissions has suggested a pre-existing regulatory mechanism with adequate safeguards.

It has also suggested an institutional mechanism within the government for an independent regulatory impact assessment.

"This process should take a fair and balanced view regarding what is good for business and consequently wealth creation and employment generation on the one hand, and public welfare considerations such as consumer protection, safety, preservation of environment and interest of labour, on the other," it added.

For start-ups, the committee has suggested that steps like earmarking of mixed land use, redevelopment or greenfield development - exempting them from the requirement of seeking building plan approvals - would give a boost to the ecosystem.

"Start-ups may be given the special dispensation of complying with labour laws on their own without being subject to inspection and/or enforcement for a period of three years, or, till their workforce exceeds 100, whichever is earlier," the 75-page report said. It also said that any inspection of a start-up should be done only with the permission of an officer at a sufficiently higher level and that too, in cases of actionable complaints.

The 11-member committee chaired by former DIPP secretary Ajay Shankar has recommended the way forward for creating an investor friendly pre-existing regulatory framework replacing multiple prior permissions with adequate safeguards for making India one of the most attractive investment destinations.

It has suggested that the ministries of environmentally sensitive sectors such as power, petrochemicals, pharma and steel should join with the ministry of environment and forests and prepare a 20-year perspective geographical plan indicating preferred locations in prioritised categories for their anticipated projects, so that the negative impact of environment is minimised. 

The other members of the committee are - Siddhartha Sibal of Accenture, CII secretary general Chandrajeet Banerjee, joint secretary in the ministry of environment and forests Manoj Kumar Singh and joint secretary in the ministry of labour and employment Alok Kumar.

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