Thiruvananthapuram: The cabinet on Thursday recommended to the governor to promulgate an ordinance ‘The Kerala Investment Promotion and Facilitation Act 2017’ as part of the ‘Ease of Business Initiative.’ The cabinet had in April decided to take steps to enhance Kerala’s ranking in the ‘Ease of Doing Business’ indicators. The central government’s Department of Industrial Policy and Promotion (DIPP) had started a system of giving ranks to states based on the parameters like time-bound permission and the facilities being provided to the industrialists.
The state government unified and amended various laws. Kerala Panchayat Raj Act, Kerala Municipality Act, Kerala Groundwater Control Act, Kerala Lift and Escalators Act, Kerala Shops and Commercial Establishments Act, Kerala Head Load Workers Act, Kerala Single Window Clearance Boards Industrial Township Local Development Act are being amended to frame the new Kerala Investment Promotion Facilitation Act.
The last date for bringing the required changes in the rules and laws for enhancing Kerala's ease of doing business ranking is October 31. The regional institutions would lose the discretionary powers for issuing or cancelling industrial licences once the proposed amendment is accepted. Decisions on such matters would be taken based on the reports submitted by the departments concerned. The clearance of district medical officer would be required only for hospitals, paramedical institution and health related institutions. The time limit for setting up factories will be reduced.
There will be no need for prior permission for establishing industries coming under the Green and White categories. The licences will be renewed automatically once the prescribed fee is deposited. Clear guidelines will be laid down for resolving complaints related to industry. The amendments are also aimed at avoiding blind issuance of stop memos to industries. The existing licence period is one year which will be extended to five years.
