Ajay Shankar committee to work out single framework for govt clearances

The government plans to ease the process of getting clearances through a broad legal framework across sectors. A committee under former industry secretary Ajay Shankar has been set up to prepare a draft of the proposed legislation.

The committee, which has Airtel vice-president Manoj Kohli and Confederation of Indian Industry secretary-general Chandrajeet Banerjee as members, would examine the possibility of replacing multiple prior permission with pre-existing regulatory mechanism. The committee has been asked to submit its report in a month.

The 11-member committee will study the requirement of various prior permissions after preparing an exhaustive inventory of such clearances. It will also recommend a framework of the proposed regulatory mechanism. Besides officials of environment and labour ministries, the committee has representations from consultancy firms KPMG and Accenture, the World Bank and ITC's Central Project Organisation.

The National Democratic Alliance government has been pushing for Make in India programme for promoting manufacturing in the country. It is also laying emphasis on making procedures simpler for easing doing business in India. According to the World Bank, India fell two ranks to 142 among 189 countries in ease of doing business. While Singapore tops the ranking, India's position is lower than its South Asian neighbours Nepal and Pakistan. India, however, ranks seventh in protecting interest of minority shareholders and 36th in getting credit.

Its overall low ranking is because it stands at 184 in getting permits for construction. At 186, the ranking is even lower for enforcing contracts, better than only Bangladesh, Angola and Timor-Leste, among 189 nations.

The United Progressive Alliance government had earlier set up a project monitoring group for facilitating faster clearances for stuck projects. Besides e-CCI (Cabinet Committee on Investment), Projects Management System has been developed for resolving issues and for tracking project with investment of over Rs 1,000 crore. Seven state governments have also set up such portals for faster clearances.

Telangana, the newest state, has become the first state in the country to make faster clearances a statutory right. While approving the industrial policy for the state in November 2014, the state Assembly adopted the Right to Single-Window Clearance on the lines of Right to Information. Telangana State Industrial Project Approval and Self-certification System has been set up for this purpose.