The State Business Reform Action Plan 2019 Rankings prepared by the Department for Promotion of Industry and Internal Trade were released on September 5 by the Finance Minister. Andhra Pradesh retains first position in the State Business Reform Action Plan 2019 rankings.
Uttar Pradesh stands at the 2nd position, replacing Telangana. Telangana has slipped to 3rd place from 2nd (in 2018), in State Business Reform Action Plan 2019 Ranking. Odisha was placed at 29 along with 7 other States.
In the last ranking released in July 2018, Andhra Pradesh had topped the chart, followed by Telangana and Haryana in the second and third positions respectively.
Odisha stood at 14th position securing 92.08 percent score and continued in the achievers group. In 2016, Odisha secured 11th position securing 92.73 percent score and placed itself in the aspiring States list slipping from 7th position in 2015. Within four years period the status of Odisha slipped from 7th position in the list in 2015 to the bottom in 2019.
In its Implementation Guide, the DPIIT suggested 80 recommendations and action plans for improvement of the performance of States in 12 areas of BRAP 2019 and sought feedback to judge the achievement. The Guide helped the State to understand the requirements for implementation of the action plan and the ways and methods for their proper implementation so as to achieve the objectives.
The evidence that has to be submitted for the implementation also suggested by the DPIIT in the guidelines. The States which implemented the action plan properly and offered the evidence of implementation went ahead in the ranking list.
Lakshadweep which ranked 33 in 2015 bagged 15th position, up by 18 steps. Daman and Diu also climbed the ladder 15 steps and reached 18th position in 2019 from 33 in 2015. Uttarakhand moved up from 23 in 2015 to 11 in 2019. Himachal Pradesh reached 7th position in 2019 from 17 in 2015. Telangana reached 3rd position in 2019 from 13th position in 2015 marking an upward movement of 10 positions. This speaks volumes about the sincere efforts of the States to improve their business reforms action plans. It is not only the efforts and measures implemented and the timely submission of the evidence which enables proper feedback from the respondents.
The first major area where the reforms are recommended by the DPIIT is the Access to Information and Transparency Enablers with an Information Wizard, Investor Facilitation Centre and the Timeliness for Approvals, Registrations, Licences, Renewals, etc.
Information Wizard is an interactive tool that guides an user or investor by asking a series of questions to provide necessary information about the sector applicable regarding licences, NoCs, permits, etc., required at the pre-establishment and pre-operation stages of establishing a business to avoid running around to get such information. Establishment of a formal Investors’ Facilitation Center in the State for investment promotion and industrial facilitation is the second recommendation in the area of access to information.
The facilitation center must be set up through a legislation since the investor facilitation center’s ability to resolve problems is related to its legal status, mandate and location within the Government.
Timeliness for approvals, registrations, licences and renewals are the third recommendation in the area of access to information which ensures timeliness for specified services like property registration process (deeds are registered on the same day of the appointment) ; land allotment process ; consent to establish and consent to operate under The Water (Prevention and Control of Pollution) Act, 1974 and The Air (Prevention and Control of Pollution) Act, 1981 ; authorization under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016 ; Registration and grant and renewal of licence under The Factories Act, 1948 ; approval of plan and permission to construct/extend/or take into use any building as a factory under the Factories Act, 1948 ;obtaining water connection ; State Excise and Profession Tax ; Registration of Partnership firm ; Registration of Societies.
Every State has to implement the recommendations and submit proper evidence as prescribed and facilitate proper feedback. This is just one area of reforms I mentioned. Similarly there are 11 more areas with 73 recommendations which every State has to take care of and submit the progress to DPIIT.
The notable areas are single window system; land administration and transfer of land and property; land availability and allotment; environment registration enablers; construction permit enablers; labour regulation enablers; obtaining utility permits; paying taxes; contract enforcement. No doubt it is an herculean task but every State has to carry out in the best interest of its business growth. It is time for the State of Odisha to review their performance and the pitfalls where they lagged behind. How sincerely and effectively the recommendations were implemented and reported properly is to be evaluated.
If the problems lies in the reporting, the loophole is to be found out to be tightened. Proper and genuine office orders, circulars and notifications duly signed and dated are to be submitted as evidence of the implementation of reforms.
Sometimes the links/URls submitted by the State may not work properly and put a doubt on the genuinity of the activity. A sincere reexamination of the whole system and its proper overhauling is the need of the hour to rise again to the position we lost.
(Dr Biswal is Head, Department of Commerce, Nowrangpur College, Nabarangpur, Odisha, 764063. Mob:9437125286 bhaskarnathbiswal@gmail.com)