MP provides legal backing to time-bound clearance to industrial licences

The new law will be applicable to greenfield industrial projects under Information Technology, Tourism, MSME and Industries categories

The Madhya Pradesh Cabinet on Wednesday cleared a Bill, which will ensure time-bound clearance of industrial licences for investment projects.

It will also have a slew of penal provisions for officials who fail to deliver on clearances within the stipulated time frame. Called the ‘Madhya Pradesh Time-Bound Clearance Act,’ the draft Bill ensures that 40 clearances and permissions pertaining to almost 10 state departments will have to be delivered within a fixed timeframe.

Officials and personnel who are found to be delaying the clearances could be persecuted under the new Bill, a senior state government official said. The new law will be applicable to investment in industrial projects under information technology, tourism, MSME, and industries categories.

The applications for seeking these permissions, which include nod from the professional tax department as well as the building and constructions department, have to be sent through the online portal, said the official. “This is perhaps the first time any state government has provided legal backing to time-bond clearance of industrial permissions and licenses for setting up industries,” Rajesh Rajora, state’s principle secretary for industries said.

He said the new Bill will be presented in the Assembly in March. The draft states that 25 permissions and clearances will have to be provided within a day, 10 clearances in seven days and five crucial permissions within 15 days.