New Delhi (NVI): The states of Gujarat, Uttar Pradesh and Uttarakhand have successfully complete “Ease of Doing Business” (EoDB) reform stipulated by the Department of Expenditure, taking the total number of states to complete reform to 15, the Ministry of Finance said.
With this, these 3 states has been granted permission to raise additional financial assistance of Rs 9,905 crore through open market borrowings. On receipt of recommendation from the Department for Promotion of Industry and Internal Trade (DPIIT).
“The total number of states successfully completing the Ease of Doing Business reforms has increased to 15,” the Finance of Ministry said in a statement.
Earlier, Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Odisha, Punjab, Rajasthan, Tamil Nadu and Telangana had also reported completion of this reform, which was confirmed by DPIIT.
On completion of reforms facilitating ease of doing business, these 15 states have been granted additional borrowing permission of Rs 38,088 crore.
Notably, the ease of doing business is an important indicator of the investment friendly business climate in the country. Improvements in the EoDB will enable faster future growth of the state economy, the ministry said.
Therefore, the government in May last year, decided to link grant of additional borrowing permissions to States who undertake the reforms to facilitate ease of doing business.
The reforms stipulated under this category includes, completion of first assessment of ‘District Level Business Reform Action Plan’ and elimination of the need to renew or approve registration certificates or licences obtained by businesses under various acts.
Also, implementation of computerized central random inspection system under the Acts wherein allocation of inspectors is done centrally.
In view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the government of India had on 17 May, 2020 enhanced the borrowing limit of the states by 2 percent of their GSDP, the statement read.
“Half of this special dispensation was linked to undertaking citizen centric reforms by the states” it added.
The four citizen centric areas for reforms identified were, Implementation of One Nation One Ration Card System, Ease of doing business reform, Urban Local body/ utility reforms and Power Sector reforms.
So far, 18 States have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions.
Out of these, 13 States have implemented the one nation one ration card system, 15 States have done ease of doing business reforms, 6 States have done local body reforms and 2 States have undertaken power sector reforms, the ministry said, adding that, “Total reform linked additional borrowing permission issued so far to the States stands at Rs 86,417 crore.”
-RJV
