Notwithstanding Odisha piping Maharashtra and Karnataka to emerge as seventh business-friendly State nationally, the World Bank's Business Reforms Implementation Status report released on Monday apparently proved a god-send for Odisha as it mirrors
on the chinks in State's new Industrial Policy Resolution (IPR) - 2015 launched recently with much fanfare.
Though the IPR - 2015 laboured hard to rezig the timid Single Window System in State by laying emphasis on web-based time-bound 'clearances' to investment proposals, even Uttar Pradesh scored over Odisha by hitting the bull's eye as it ensured a time-bound 'service-delivery' to entrepreneurs for registration or licencing processes in vital arenas like labour, environment, land allotment, construction permits, power/electricity connections and State taxes - which remain unaddressed in the new IPR-2015. Significantly, the new IPR talks of only 'efforts' to ensure time-bound 'clearances' but World Bank asks for 'enforcing' timelines in 'service-delivery' and provisioning 'punitive' measures for violations. Uttar Pradesh along with Chhattisgarh and Andhra Pradesh have passed this World Bank test successfully. Significantly, both Andhra and Chhattisgarh happen to be State's neighbours and competitors. Andhra is at number - 2 and Chhattisgarh at number - 4, ahead of Odisha in ease of doing business list.
Moreover, when Odisha has shown intention with incentives in the new IPR to compete with Punjab, Andhra and others in attracting investments in agro, auto, electronic and pharma sectors, the ground scenario is investors sweat it out to avail these in almost a year's time here thanks to complex documentation and non-adherence to standard objective procedures. On the other hand, Punjab has formed a Bureau of Investment Promotion (BIP) that offers one-stop system for various State-level regulatory and fiscal incentive approvals.
Similarly, Andhra Pradesh too has a Single Window System (SWS) with effective online-status tracking, scrutiny and approval, observed the WB report.
In the context of 'Start-up India' campaign by Prime Minister Narendra Modi, the policy enabler to facilitate a business start-up in Odisha is not conducive even in the new IPR regime. Though Odisha has the facility to file Entrepreneurial Memorandum (EM - I and II) online, investors have to wait for 15 days for EM - I registration and around 38 days for EM - II registration against 7 days and 15 days in its nearest competitor States. Despite this, IPR - 2015 left this vital shortcoming unaddressed. More so when the State is venturing into attracting investment in manufacturing sectors other than the core sectors, quality infra info would be the most sought-after by a prospective investor and Odisha's new IPR has no provision to extend its offer of GIS based comprehensive industrial data to infra like road, water pipeline and sewerage systems unlike Gujarat as indicated by the WB report.
Jharkhand outperformed Odisha by putting in place an online property registration and payment system along with implementing a dedicated environment consent management system for key statutory clearances. Chhattisgarh pulled ahead of Odisha by virtue of better labour reforms like third party certification of boilers and online system to allocate inspectors and submission of inspection reports within 72 hours. It also raced ahead of Odisha owing to huge vacancies of judges in district courts here - which hampers in adjudicating commercial disputes, says the WB report.