New Delhi (NVI): The states of Haryana, Himachal Pradesh, Assam and Punjab have successfully complete “Ease of Doing Business” reform stipulated by the Ministry of Finance.
With this, these states have become eligible to mobilise additional financial assistance worth Rs 5,034 crore through Open Market Borrowings.
In a statement, the Finance Ministry said that, “Four more States namely, Assam, Haryana, Himachal Pradesh and Punjab have undertaken “Ease of Doing Business” reforms stipulated by the Department of Expenditure, Ministry of Finance.”
The total number of states who have undertaken the stipulated reforms to facilitate ease of doing business has gone up to 12, it added.
Earlier, Andhra Pradesh, Karnataka, Kerala, Madhya Pradesh, Odisha, Rajasthan, Tamil Nadu and Telangana have also reported completion of this reform, which was confirmed by the Department for Promotion of Industry and Internal Trade (DPIIT).
On completion of reforms facilitating ease of doing business, these 12 states have been granted additional borrowing permission of Rs 28,183 crore.
Notably, the ease of doing business is an important indicator of the investment friendly business climate in the country and improvements in the ease of doing business 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 by the Department of Expenditure under in this category includes, completion of first assessment of ‘District Level Business Reform Action Plan’ and removal 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.
Earlier on May 17 last year, in view of the resource requirement to meet the challenges posed by the COVID-19 pandemic, the Government of India had enhanced the borrowing limit of the states by 2 percent of their Gross State Domestic Product (GSD), the statement read.
“Half of this special dispensation was linked to undertaking citizen centric reforms by the States,” it added.
These four citizen centric areas for reforms identified are implementation of one nation one ration card system, ease of doing business reform, urban local body/ utility reforms and power sector reforms.
So far, 17 states have carried out at least one of the four stipulated reforms and have been granted reform linked borrowing permissions.
“Total reform linked additional borrowing permission issued so far to the States stands at Rs 74,773 crore,” the ministry added.