DIPP ASSESSMENT 2015

A. DIPP ASSESSMENT 2015 FRAMEWORK (285 INTERVENTIONS)

In 2015, Department of Industrial Policy and Promotion (DIPP) in consultation with State Governments and industry associations, undertook a National Workshop for creating an enabling framework for stimulating investments in Manufacturing. The DIPP assessment of state-level reforms related to business in India and the assessment was undertaken to examine the extent to which state governments have implemented the 98-point action plan issued to states in early 2015.

This was a pan India initiative that translated into 285 questions/interventions that have been classified under major reform areas like Single Window, Labour, Pollution Control, Taxation, land, building and construction permits, etc. Every factor enabling ease of doing business is treated with equal weightage as part of the assessment framework.

1. Timelines and Activities

2. Areas of focus

The details of the 8 assessment areas with number of questions in each are as below:

Area Sub Area Number of Questions
Area 1- Setting Up a Business Part - 1a: Setting up a business – General
Part - 1b: Setting up a Business – Single window system
9
19
Area 2 - Allotment of land and obtaining construction permit Part - 2a: Allotment of land and obtaining construction permit - General
Part – 2b: Allotment of land and obtaining construction permit – NOCs/licenses/registrations
25
12
Area 3 - Environment procedure Part - 3a: Complying with environment procedures – General
Part – 3b: Complying with environment procedures – NOCs/ licenses/ registration
9
24
Area 4 – Labour Regulation Part - 4a: Complying with labour regulations – General
Part - 4b: Complying with labour regulations – Application for NOCs/licenses/registrations
Part – 4c: Complying with labour regulations – Applications for renewal of approval
7
28
16
Area 5 – Obtaining Infrastructure related utilities Part – 5 a: Obtaining Infrastructure related utilities – General
Part – 5 b: Obtaining Infrastructure related utilities – NOCs/licenses/registrations
9
12
Area 6 – Tax Procedures Part – 6 a: Tax procedures – General
Part – 6 b: Tax procedures – NOCs/licenses/registrations
20
24
Area 7 – Inspections Part - 7a: Carrying out Inspections - General
Part - 7b: Carrying out Inspections - Procedures
2
60
Area 8 – Enforcing Contracts 9
TOTAL 285

B. ANDHRA PRADESH RANKED 2ND IN EODB

In a very short period after bifurcation, Government of Andhra Pradesh has made an impact through its investor-friendly initiatives. The state was ranked second, with a score of 70.12%, amongst other states in the country on Ease of Doing Business.

2nd

Over all rank in Ease of Doing Business Ranking by DIPP - World Bank Assessment

Top 10 States

Area wise rank and score of Andhra Pradesh

Area AP Rank Score
Setting up Business 2 78.57%
Land & Construction Permits 5 62.16%
Environment Compliance 2 85.19%
Labour 3 75.00%
Infrastructure related Utilities 4 60.00%
Tax 2 90.63%
Inspections 3 62.00%
Enforcing Contracts 0 0%
Total 2 70.12%

Andhra Pradesh was ranked in the category of 'Aspiring Leaders' which included 7 states - Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Odisha and Rajasthan.

World Bank highlighted following initiatives taken by Andhra Pradesh implemented an effective online single-window system with provision for filing, payment, status tracking, online scrutiny and approval of applications.

C. DOWNLOADS

1. 285 Recommendations to states and AP response Link (pdf - 1.33 MB)
2. Assessment of State Implementation of Business Reforms (pdf - 3.62 MB)

DIPP ASSESSMENT 2016

A. DIPP ASSESSMENT 2016 FRAMEWORK (340 INTERVENTIONS)

The revised DIPP framework for assessing state reforms and implementation in 2016 has 340 interventions as compared to 285 in the previous one. The business reform action plan continues to focus on online and technology driven improvements in government procedures to enable a conducive business environment.

Areas: Departments:
S.NoAreaDepartmentSub AreaScore
1
Environment
APPCB Environment Department
Part – 5a: Environmental Registration Enablers
Part – 5b,5c: Consent to Establish
Part – 5d: Authorization under Hazardous Waste
Part – 5e,5f: Consent to Operate
31
2
Construction Permit
UD / APIIC / IALA /Revenue Department / Forest Department
Part – 4a: Construction Permit Enablers
Part – 4b: Building Plan Approval
Part – 4c: NOC for tree felling from Tree
Authority
Part – 4d: NOC for Fire Department
29
3
Land & Property Registration
IGRS /MAUD /CCLA /APIIC /IALA
Part – 3a: Availability of land
Part – 3b: Land Allotment
Part – 3c: Property Registration – Enablers
Part – 3d: Property Registration
20
4
Single Window
Department of Industries
Part – 2a: Single Window
Part – 2b: Online Single Window System
28
5
Access to Information and Transparency Enablers
Department of Industries Sales Tax Department
13
6
Labour Reforms
Labour Department
Part – 6 a: Labour Regulation Enablers
Part – 6b,6c: Registration under The Factories Act
Part – 6d: License under The Indian Boilers Act
Part – 6e: License under Contracts Labour Act
Part - 6f: Registration under The Shops and Establishment Act
Part - 6g: Registration under Contracts Labour Act
Part – 6h:Registration under BoCW Act
Part – 6i: Renewal of license under The Factories Act
Part – 6j: Renewal of license under The Indian Boilers Act
Part – 6k: Renewal of license for Contractors
Part – 6l: Renewal under The Shops and Establishment Act
57
7
Obtaining infrastructure related utilities
Energy / Water
Part – 7a: Obtaining Electricity Connection
Part – 7b: Obtaining water connection
14
8
Tax
Sales Tax Department
Part – 8a: Online tax return filing
Part – 8b: Online tax payment
Part - 8c: Tax enablers
Part - 8d: Registration for Value Added Tax (VAT)
Part - 8e. Registration for Central Sales Tax (CST)
Part - 8f. Registration for Professional Tax
Part - 8g. Registration for Entry Tax
Part - 8h. Registration for Entertainment Tax
Part - 8i. Registration for Luxury Tax
49
9
Inspection Reforms
MPCB / Labour / Sales Tax/ Revenue / Forest / UD
Part – 9a: Inspection reform enablers
Part – 9b: Inspection of business premises for VAT registration
Part - 9c: Inspection for obtaining construction permit
Part - 9d: Inspection by Appropriate Authority for felling trees
Part - 9e. Inspection for obtaining occupancy certificate
Part - 9f,9g,9h,9i,9j,9k,9l,9m. Compliance Inspections in Labour Acts
Part – 9n. Compliance Inspections under Water Act; Air Act
86
10
Enforcing Contracts
Law & Judiciary Department
Part – 10a: Commercial Dispute Resolution Enablers Part – 10b: Paper-less Courts
13

B. DOWNLOAD

1. 340 Recommendations to states by DIPP (pdf - 560 KB)
2. GoI initiatives to improve Business Environment (pdf - 328 KB)
3. DIPP Vision/Action Plan (pdf - 1.22 MB)
4. Response to States Comments (pdf - 268 KB)

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, in partnership with the World Bank Group, is pleased to release the results of the Assessment of State Implementation of Business Reforms 2015-16. The Assessment studies the extent to which states have implemented DIPP’s 340-point Business Reform Action Plan (BRAP) for States/UTs 2015-16, covering the period July 1, 2015 to June 30, 2016. The BRAP includes recommendations for reforms on 58 regulatory processes, policies, practices or procedures spread across 10 reform areas spanning the lifecycle of a typical business.

Data for this assessment was collected from State Governments on the BRAP portal. The portal, among the first of its kind globally, allowed State Governments to submit evidence of implemented reforms. At least 32 State and UT Governments submitted evidence of implementation of 7,124 reforms. These submissions were reviewed by the World Bank team and validated by DIPP’s team to study whether they met the objectives of the BRAP. The portal allowed for collaborative dialogue between DIPP and the State Governments in finalizing the evidence submitted. A total of 6,069 reforms were approved as implemented or not applicable on the portal.

The results of the assessment demonstrate that States have increasingly risen to addressing the challenge of making it easier to do business. The national implementation average stands at 48.93%, significantly higher than last year’s national average of 32%. This demonstrates the great progress made by States this year.

The final rank of the States as of June 30, 2016 is shown in the table below.

2016 Rank State Score (%) 2015 Rank
1. Andhra Pradesh 98.78 2
1. Telangana 98.78 13
3. Gujarat 98.21 1
4. Chhattisgarh 97.32 4
5. Madhya Pradesh 97.01 5
6. Haryana 96.95 14
7. Jharkhand 96.57 3
8. Rajasthan 96.43 6
9. Uttarakhand 96.13 23
10. Maharashtra 92.86 8
11. Odisha 92.73 7
12. Punjab 91.07 16
13. Karnataka 88.39 9
14. Uttar Pradesh 84.52 10
15. West Bengal 84.23 11
16. Bihar 75.82 21
17. Himachal Pradesh 65.48 17
18. Tamil Nadu 62.80 12
2016 Rank State Score (%) 2015 Rank
19. Delhi 47.62 15
20. Kerala 26.97 18
21. Goa 18.15 19
22. Tripura 16.67 26
23. Daman & Diu 14.58 -
24. Assam 14.29 22
25. Dadra & Nagar Haveli 1.79 -
26. Puducherry 1.49 20
26. Nagaland 1.49 31
28. Manipur 1.19 -
29. Mizoram 0.89 28
30. Sikkim 0.60 27
31. Arunachal Pradesh 0.30 32
31. Jammu & Kashmir 0.30 29
31. Chandigarh 0.30 24
31. Meghalaya 0.30 30
31. Andaman & Nicobar Islands 0.30 25
31. Lakshadweep 0.30 -

Based on implementation of reforms, States have been divided into four categories, as below

Category States
Leaders (90- 100%) Andhra Pradesh, Telangana, Gujarat, Chhattisgarh, Madhya Pradesh, Haryana, Jharkhand, Rajasthan, Uttarakhand, Maharashtra, Odisha, Punjab
Aspiring Leaders (70-90%) Karnataka, Uttar Pradesh, West Bengal and Bihar
Acceleration Required (40-70%) Himachal Pradesh, Tamil Nadu and Delhi
Jump Start Needed (0-40%) Kerala, Goa, Tripura, Daman & Diu, Assam, Dadra & Nagar Haveli, Puducherry, Nagaland, Manipur, Mizoram, Sikkim, Arunachal Pradesh, Jammu & Kashmir, Chandigarh, Meghalaya, Andaman & Nicobar Islands, and Lakshadweep.

The highlight of the implemented reforms during this period is as follows:

Single Window Systems: Various States have created a dedicated body/bureau as a one-stop system for State level regulatory and fiscal incentive approvals. The online single window system has a provision for filing applications, payment, status tracking, online scrutiny and approval of applications. The officials of the Body/Bureau have also been given powers to grant approvals.

States include: Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Telangana, Uttarakhand


Tax reforms: States have made good progress in tax reforms. These include mandating e-registration for Value Added Tax (VAT), Central Sales Tax (CST), Professional Tax, Entry tax, etc, allowing online payment and return filing; providing e-filing support through service centers and helpline and risk-based tax compliance inspections.

States include: Bihar, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand, West Bengal


Construction permits:Many States have allowed applicants to apply online and upload building plans for automated construction permit approval. In addition, several states have developed AutoCAD-based systems that automatically scan building plans and monitor compliance with the building bye-laws and building codes in force.

States include: Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Telangana, Uttrakhand


Environment and labour reforms:States have also implemented advanced automated solutions to deal with environmental and pollution related applications and approvals. These solutions provides hassle free, 24 X 7 eaccess to businesses to apply online, track applications, file returns and statements and get online permissions under various Acts and regulations.

States include: Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, West Bengal


Inspection Reforms:A number of inspection reforms with regard to labour, tax and environment related compliances have been introduced across the States to help businesses comply with inspection requirements in a user-friendly manner. To bring in transparency, the states have also published comprehensive procedures and checklist for various inspections and have implemented online systems for allocation of inspectors to increase efficiency and effectiveness of the procedure.

States include: Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Punjab, Rajasthan, Punjab, Telangana, Uttar Pradesh, Uttarakhand


Commercial disputes and paper-less courts:There has been significant progress this year in the area of judicial reforms compared to last year, particularly due to the passage of the Commercial Courts, Commercial Divisions and Commercial Appellate Divisions Act. To address the concern of time and costs associated with various legal processes, District Courts in various states have also made the provision of making online payments, e-filing and e-summons. Few States have also filled up vacancies in District Courts/commercial courts to ensure availability of adequate capacity for dealing with various cases.

States include: Andhra Pradesh, Chhattisgarh, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Maharashtra, Rajasthan, Telangana