Maharashtra and Jharkhand top list on two parameters

A World Bank report 'Assessment of State Implementation of Business Reforms', released here on Monday, under the aegis of the Confederation of Indian Industry (CII), showed Maharashtra and Jharkhand were the top states on two parameters out of eight. While the former was judged the best in enforcing contracts and obtaining connections from infrastructure related utilities for industries, the latter stood first in complying with labour reforms and carrying out inspections.

The report said the high court in Maharashtra had constituted and prescribed seven commercial benches exclusively for resolving commercial disputes. "To address the concern of time and costs associated with various legal processes, district courts in the state have been equipped with the provision for making online payments. Most vacancies for judges have been filled up in district courts and hiring of judges is undertaken as and when vacancies are created to ensure availability of adequate capacity for dealing with various cases," it said.

Maharashtra was judged the best state on this yardstick, though it scored just 55.56 per cent. The national average was a mere 16.49 per cent. The state was also first in terms of obtaining connections for water and power for industries.

On Jharkhand, the report said, "The labour department of the state has implemented a comprehensive online workflow-based portal, facilitating speedy approvals and clearances for entrepreneurs … To ease the burden on business with undue legal and government requirements, a number of initiatives have been introduced in the states of Gujarat and Jharkhand. A unified inspection has been provisioned by the state with regard to a number of labour department-related Acts. This helps businesses in complying with inspection requirements."

Karnataka was the only United Progressive Alliance-ruled state to be ranked first in any of the parameters - registering and complying with tax procedures. The report said the state had undertaken comprehensive automation and process re-engineering in taxation. "All services, including registration for various taxes, filing returns, paying taxes through a payment gateway, receiving registration certificates (which are downloadable and verifiable) and e-waybill registrations, are provided through electronic mode alone," the report said.

Gujarat scored 100 per cent in complying with environment procedures. In terms of setting up business, Punjab stole the show, owing to the implementation of single-window clearance. "The spirit of 'competitive federalism' ushered in by the central government is driving states to push new reforms to make the environment more conducive for business. This, we believe, will be the single-most important enabler in improving ease of doing business across the country, eventually up-scaling India's position in the World Bank's Doing Business Rankings this year and ahead," said Chandrajit Bannerjee, director-general of CII.

In the crucial parameter of land allotment for industry, Madhya Pradesh was the clear winner.