Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Punjab’s new Right to Business Bill
What to study?
For Prelims: Key features.
For Mains: Significance and the need for.
Context: The Punjab Cabinet has given it’s approval to a Punjab Right to Business Bill, 2020.
About the Punjab Right to Business Bill, 2020:
It is aimed at ensuring ease of doing business for the Micro, Small and Medium Enterprises (MSME) sector.
Under the law, an MSME unit can be set up after ‘In-Principle’ approval from the District Bureau of Enterprise, headed by the Deputy Commissioner, working under the guidance of the State Nodal Agency, headed by the Director, Industries.
Approval for units in approved Industrial Parks will be given in three working days. For new enterprises outside approved Industrial Parks, the decision on the “Certificate of In-Principle Approval” shall be taken by the District Level Nodal Agency within 15 working days, as per the recommendations of the Scrutiny Committee.
What is the timeframe for unit owners to comply?
Unit owners will have three and a half years after setting up the unit to obtain seven approvals from three departments: the sanction of building plans; issuance of completion/occupation certificate for buildings; registration of new trade licences under relevant laws.
Why was a law needed, rather than an executive order?
According to the government, the Act will have overriding powers over various Acts of different departments that make approvals necessary before the setting up of small and medium units — this purpose could not have been achieved by an executive order.
Sources: the Hindu.