EW DELHI: Seven states, including Andhra Pradesh, Gujarat, Haryana, Karnataka, Punjab, Tamil Nadu and Telangana, have emerged as top achievers among states and union territories in the Business Reforms Action Plan (BRAP) assessment, covering 15 areas and 301 reform action points.
Based on their performance, states and UTs have also been categorised as ‘achievers’, ‘aspirers’ and emerging business ecosystems, unlike the past, when they were ranked.
They are now being pushed to decriminalise provisions in their laws so that minor offences do not result in harsh penalties. The move comes as a similar exercise is under way at the Centre with several laws, such as the Companies Act, already seeing changes. “We have requested states to look very closely at decriminalisation...Make it a civil penalty or compoundable for minor violations,” said Anurag Jain, secretary in the department for promotion of industry and internal trade, which undertakes the exercise.
The rankings, which are the equivalent of Ease of Doing Business, saw the introduction of 118 new reform parameters and 72 sectoral updates in 2020, which is the latest edition. The parameters included single window clearance mechanisms, inspection modules across states, obtaining construction and utility permits, environment clearances, land administration and transfer of property and plug and play facilities for businesses to come and set up shop in industrial estates and parks.
While releasing the report, the Centre said that 7,496 reform initiatives have been implemented across states and union territories as part of the BRAP exercise, pointing to life becoming easier for businesses.
“The reforms taking place now are responsive reforms. Unlike the reforms of 1991, which were given to us for implementation, there is no compulsion now. The objective is to see what will bring out improvement in systems and ensure better lives for us. An element of nudge has been brought into every layer of the government. Nudging cannot be by the government only and the industry has a big role to play there,” finance minister Nirmala Sitharaman said, while releasing the rankings.
Commerce and industry minister Piyush Goyal said that the system has evolved from being evidence-based, when it started in 2014, to one that is entirely based on feedback from stakeholders.