LG, CM set mid-August deadline to complete deregulation reforms

Lieutenant Governor Taranjit Singh Sandhu and Chief Minister Rekha Gupta on Wednesday jointly reviewed the progress of Delhi’s Deregulation and Compliance Reduction exercise. They directed all agencies and departments to complete all pending reforms by mid-August, while being informed that the Delhi Ease of Doing Business Bill, 2026, has been finalised and is expected to be cleared by the Cabinet within a week.

The review meeting, chaired by the LG, was attended by the Chief Minister, Ministers Ashish Sood and Manjinder Singh Sirsa, the Special Secretary from the Cabinet Secretariat of the Government of India who is spearheading the exercise, the Chief Secretary of Delhi, ACS Industries, MCD Commissioner, DDA Vice Chairman, Principal Secretary Law, Secretary Education, Divisional Commissioner, Secretary Health, and senior representatives from Fire Services, Tourism, and other departments. The previous such review had been held on June 15, 2026.

The deregulation exercise is being spearheaded by the Cabinet Secretariat of the Government of India under the Prime Minister’s vision of Ease of Doing Business and Ease of Living. Phase-I, launched in January 2025, covered 23 Priority Areas. Phase-II, launched in January 2026, covers 23 Priority Areas and five optional ones.

On Phase-I, the meeting was informed that 13 Priority Areas have been implemented, four were found not applicable following the enactment of the new Labour Codes, and the remaining six are under advanced stages of implementation. These six cover flexible zoning norms, rationalisation of building regulations, and enhanced roles for empanelled third parties in building approvals. They are tied to the notification of the new Master Plan for Delhi and the approval of the new Urban Building Bye-Laws 2026 by the Ministry of Housing and Urban Affairs.

On Phase-II, implemented Priority Areas have risen from three at the time of the last review to nine, including the removal of dual trade licences by MCD, liberalised regulations for shops and commercial establishments, and expedited electricity connections. Seventeen Priority Areas remain under active implementation across MCD, DDA, Fire, Health, Education, and Industries departments. The number of Priority Areas still pending with departments has been reduced from three to two.

The Delhi Ease of Doing Business Bill, 2026, which addresses 13 of the 28 Priority Areas under Phase-II, has been circulated to 29 departments for comments and stakeholder consultations. It has now acquired final shape and is expected to go to the Cabinet within a week.

Draft bills related to easing requirements in the education sector and adding a Right to Appeal under the Right to Services Act have also been finalised and are expected to be placed before the forthcoming session of the Legislative Assembly.

Several pending reforms covering setbacks, Floor Area Ratio, ground coverage, and Development Control Norms for industrial and commercial plots, along with the removal of jurisdictional ambiguity over land use, are contingent on the notification of the Master Plan for Delhi 2041, which is at an advanced stage of finalisation. The LG said any laxity in implementing the Ease of Doing Business and Ease of Living agenda is non-negotiable. The CM noted that significant progress had been made since the present Government took over, despite delays caused by the previous Government’s approach.