State Business Reform Action Plan -

Implementation Guide for States

July 2017
Contents

Introduction ..................................................................................................................................... 5
1. Labour Regulation Enablers ....................................................................................................... 6
2. Registration and grant and renewal of license under The Factories Act, 1948 .......................... 7
3. Approval of plan and permission to construct/extend/or take into use any building as a factory
under the Factories Act, 1948 ......................................................................................................... 7
4. Registration and Renewal of Boilers under The Boilers Act, 1923 ............................................ 9
5. Approval for Boiler manufacturer and renewal thereof ............................................................ 10
6. Approval for Boiler erector and renewal thereof ...................................................................... 11
7. License and renewal of license for contractors under provision of The Contracts Labour
(Regulation and Abolition) Act, 1970 .......................................................................................... 12
8. Registration and renewal under The Shops and Establishment Act ......................................... 13
9. Registration of principal employer's establishment under provision of The Contracts Labour
(Regulation and Abolition) Act, 1970 .......................................................................................... 14
10. Registration under The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996 ..................................................................... 15
11. Registration of establishment under the Inter State Migrant Workmen (RE&CS) Act, 1979 16
12. Contract Enforcement ............................................................................................................. 17
13. Paper-less Courts .................................................................................................................... 18
14. Property Registrations - Enablers ........................................................................................... 18
15. Property Registration – Online system ................................................................................... 20
16. Inspection Reform Enablers .................................................................................................... 21
17. Inspection of the business premises for VAT (Value Added Tax) registration ...................... 23
18. Inspection by Building Proposal Office/ relevant agency as part of obtaining construction
permit ............................................................................................................................................ 24
19. Inspection by Appropriate Authority for felling trees (prior to commencement of
construction activities) .................................................................................................................. 24
20. Inspection by Building Proposal Office/ relevant agency as part of obtaining
occupancy/completion certificate ................................................................................................. 25
21. Compliance Inspection under The Equal Remuneration Act, 1976 ...................................... 26
22. Compliance Inspection under The Factories Act, 1948 ......................................................... 27
23. Compliance Inspection under The Minimum Wages Act, 1948............................................ 28

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24. Compliance Inspection under The Shops and Establishments Act (as applicable) ................ 29
25. Compliance Inspection under The Payment of Bonus Act, 1965 ........................................... 30
26. Compliance Inspection under The Payment of Wages Act, 1936 .......................................... 31
27. Compliance Inspection under The Payment of Gratuity Act, 1972 ........................................ 32
28. Compliance Inspection under The Contract Labour (Regulation and Abolition) Act, 1970 .. 33
29. Compliance Inspection under The Water (Prevention and Control of Pollution) Act, 1974 .. 34
30. Compliance Inspection under The Air (Prevention and Control of Pollution) Act, 1981 ...... 35
31. Inspection under the Legal Metrology General Act, 2009 and Rules ..................................... 36
32. Single Window System ........................................................................................................... 36
33. Online Single Window System ............................................................................................... 37
34. Availability of Land / Infrastructure ....................................................................................... 39
35. Land Allotment ....................................................................................................................... 40
36. Construction Permit Enablers ................................................................................................. 41
37. Building Plan Approval .......................................................................................................... 43
38. NOC for tree felling from Tree Authority/ Appropriate Authority (prior to commencement of
construction activities) .................................................................................................................. 45
39. Tree Transit permission .......................................................................................................... 46
40. NOC for Fire Department (prior to commencement of construction activities) ..................... 47
41. Environment Registration Enablers ........................................................................................ 48
42. Consent to Establish under the Water (Prevention and Control of Pollution) Act, 1974 ....... 49
43. Consent to Establish under the Air (Prevention and Control of Pollution) Act, 1981............ 50
44. Authorization under the Hazardous and Other Wastes (Management and Transboundary
Movement) Rules, 2016 ................................................................................................................ 50
45. Consent to Operate under the Water (Prevention and Control of Pollution) Act, 1974 ......... 51
46. Consent to Operate under the Air (Prevention and Control of Pollution) Act, 1981.............. 52
47. Obtaining Electricity Connection ........................................................................................... 53
48. Certification of Electrical Installation by Chief Electrical Inspector ...................................... 55
49. Obtaining Water Connection .................................................................................................. 56
50. Tax Enablers ........................................................................................................................... 57
51. Registration for Value Added Tax (VAT) .............................................................................. 58
52. Registration for Central Sales Tax (CST) ............................................................................... 58
53. Registration for Profession Tax .............................................................................................. 59

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54. Registration for Entry Tax ...................................................................................................... 60
55. Registration for Entertainment Tax ........................................................................................ 61
56. Registration for Luxury Tax ................................................................................................... 62
57. Online filing of returns............................................................................................................ 62
58. Online tax payment ................................................................................................................. 63
59. Access to Information and Transparency Enablers ................................................................ 63
60. Retail Drug License (Pharmacy) and renewal thereof ............................................................ 65
61. Wholesale drug license ........................................................................................................... 66
62. Granting and renewal of Drug Manufacturing License .......................................................... 67
63. Registrations and renewals under the Legal Metrology Act, 2009 ......................................... 68
64. Registration of partnership firms ............................................................................................ 69
65. Registration of Societies ......................................................................................................... 69
66. Trade Licence.......................................................................................................................... 70

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Introduction

This guide has been produced to support states in implementing the Business Reform Action
Plan for States and UTs 2017, circulated by DIPP to all state Governments.
This guide is intended to strategically discuss the intended objective and end-result envisioned in
each of the revised 406 action points identified in the Business Reform Action Plan. It is our
hope that the guide will allow states to understand in depth what is required for full
implementation, so that they can identify the reforms that should be undertaken to achieve the
objectives of the Action Plan.
The end results envisioned for each question have been developed based on a mix of global best
practice as well as initiatives already underway by states in India. There is therefore tremendous
scope to learn from each other’s experiences and design effective reforms that can make it easier
for business to start and operate in India.
DIPP will support state implementation efforts by sharing lessons and knowledge on national
good practices already in place in various states, so that we can together reform and improve the
regulatory environment surrounding business in India.
This guide is divided into 12 sections, each focusing on the 12 areas of the Business Reform
Action Plan. In some cases, questions on similar topics have been reorganized into distinct
thematic groups to support the discussion on the topic. The original question numbers are
retained and specified in each case.
General Instructions
 Wherever a response to a reform point is N/A, supporting documentation such as
notification etc. should be provided as evidence.
 In case of uploading of multiple documents, a single integrated document combining all
should be provided.
 Public Service Delivery Guarantee Act has to be passed for defining timelines wherever
applicable. Any notification or order from the state as evidence shall not suffice as it is
not binding.
 States/UTs shall double check all the evidences (i.e. links and documents) before and
after uploading to make sure that they are valid and functional.

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1. Labour Regulation Enablers
Recommendation 1:
Mandate online filing of single integrated return and applicable payments under all Labour Laws

Labour departments are tasked with implementing and ensuring compliance under more than 40 different laws, and
most, if not all, of these laws require the submission of returns and payment annually. If these returns are not
integrated and made online, the burden on both, the business and the Labour department can be very high. The
business may have to submit multiple returns containing the same information and pay at different point of time.
Simultaneously, the department must manage multiple returns for the same firm every year and keep account of
payment against each return. From the business owner’s perspective, a single online integrated return under all
Labour laws would greatly reduce the regulatory burden. From the department’s perspective, a single online
integrated return will make it easier to capture data on the firm, while also ensuring that it can use the data more
effectively for developing effective risk profiles for inspections. A single integrated return along with online filing is
also a prerequisite for building an effective online return filing system and its underlying database.

Recommendation 2:
Introduce a provision for self-certification /third party certification for boilers during use u/s 34(3) of the Boilers
Act, 1923, by persons having requisite qualification and experience

In the case of inspections with a safety dimension, i.e. the case of the boilers, inspections can be substituted with
third-party certifications. To enable this, the state must not only issue a notification, but also lay out criteria for
accreditation and empanelment of third-party service providers, as well as clearly lay out that, in the event of an
accident, the liability falls equally upon the entrepreneur and the certifying authority. A draft notification with
reference to third-party certification of boilers has already been circulated to states by DIPP, so that states can easily
adapt and issue the notification.

Recommendation 3:
Introduce a provision for issuing Factory License and all subsequent renewals with validity of 10 years or more
Similar to the case of environmental licenses, factory licenses can also be issued for a longer validity, subject to no
changes in the factory plan. Reregistration can be mandated in the case of changes, and this provision can be built in
to the certificate itself. Random checks and audits to ensure that the factory conforms to the plan originally
submitted can be carried out, thus reducing the burden on states to inspect every single factory prior to certification.
Provision for issuing Factory License for 10 years or more may be implemented through a notification.

Recommendation 4:
Eliminate the requirement of inspection prior to registration under the Shops and Establishment Act and ensure that
the registration is granted within one day from the date of application

The registration under Shops and Establishment Act of the State is often a prerequisite for businesses to start a
business to truly begin its operations. Therefore, delays in issuing this certificate may lead to delays in the business’s
establishment and operations, thereby reducing the ability of the business to get operational in terms of getting bank
loans, employ workers and generate incomes. Eliminating the requirement of inspection prior to registration and
providing this registration in a timely manner may help reduce this burden significantly.
However, should the state choose to do so, it is necessary to put in place this commitment through a written
notification mandating registration certificate to be issued in 1 day from date of application, and to ensure that any
online systems for these registrations are equipped to allow this to happen in a timely manner.

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2. Registration and grant and renewal of license under The Factories Act, 1948
Recommendation 5: Recommendation 6:
Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 7: Recommendation 8:
Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 9: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission to application approval,
is published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not
required to physically present and submit all documents for verification before the certificate is issued.
Instead, entrepreneurs can use digital signature certificates to submit their documents through the online
system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

3. Approval of plan and permission to construct/extend/or take into use any building as a
factory under the Factories Act, 1948

Recommendation 10: Recommendation 11:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 12: Recommendation 13:

Design and implement a system that allows online Ensure that the system allows users to download the

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application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 14: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not
required to physically present and submit all documents for verification before the certificate is issued.
Instead, entrepreneurs can use digital signature certificates to submit their documents through the online
system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting
the portal. Current/valid issued certificates or granted approval should be made available in the public
domain for third party.

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4. Registration and Renewal of Boilers under The Boilers Act, 1923

Recommendation 15: Recommendation 16:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 17: Recommendation 18:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 19: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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5. Approval for Boiler manufacturer and renewal thereof

Recommendation 20: Recommendation 21:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 22: Recommendation 23:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 24: Allow third parties to easily verify approval certificates in the public domain
Wherever the State government has made a provision for approval of boiler manufacturers, provision shall also
be made for online submission and disposal of application.

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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6. Approval for Boiler erector and renewal thereof

Recommendation 25: Recommendation 26:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 27: Recommendation 28:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 29: Allow third parties to easily verify approval certificates in the public domain
Wherever the State government has made a provision for approval of boiler erectors, provision shall also be made
for online submission and disposal of application.

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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7. License and renewal of license for contractors under provision of The Contracts Labour
(Regulation and Abolition) Act, 1970

Recommendation 30: Recommendation 31:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 32: Recommendation 33:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 34: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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8. Registration and renewal under The Shops and Establishment Act

Recommendation 35: Recommendation 36:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 37: Recommendation 38:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 39: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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9. Registration of principal employer's establishment under provision of The Contracts
Labour (Regulation and Abolition) Act, 1970

Recommendation 40: Recommendation 41:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 42: Recommendation 43:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 44: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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10. Registration under The Building and Other Construction Workers (Regulation of
Employment and Conditions of Service) Act, 1996

Recommendation 45: Recommendation 46:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 47: Recommendation 48:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 49: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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11. Registration of establishment under the Inter State Migrant Workmen (RE&CS) Act,
1979

Recommendation 50: Recommendation 51:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 52: Recommendation 53:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 54: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

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12. Contract Enforcement
Recommendation 55: Recommendation 56:
Establish a specialized division/bench under the High Establish specialized commercial courts (in major
Court to hear commercial disputes towns/cluster of district so as to cover the whole State)
to hear and resolve the commercial disputes
Recommendation 57: Recommendation 58:
Ensure at least 90% of the vacancies in District Ensure that the time standards for commercial disputes
courts/Commercial courts been filled up are adhered for the following key court events:
i. First hearing;
ii. Filing of the statement of defense;
iii. Completion of the evidence period;
iv. Filing of testimony by expert; and
v. Submission of the final judgment
The objective of the questions above is to understand the readiness of the state’s judicial system to reduce the
backlog in courts. These measures can help reduce the time taken to enforce contracts by providing efficient
judgments in commercial cases without undue delay in various ways:
 Specialized commercial courts at High Courts and District Courts can focus on contract disputes
exclusively, thereby reducing the requirement for complainants and defendants to wait for delayed
judgments through the regular court system. This can reduce the time and the cost of enforcing contracts.
The District courts are to be established across the State covering districts that have significant
commercial activity and disputes.
 Recruiting judges and ensuring that vacancies are filled up can help ensure that there are sufficient
judges in place to deal with disputes, thus tackling the backlog as well as rendering judgments more
efficiently in future cases.
 Timelines for delivery of key events under a commercial dispute case must be enforceable. The
timelines to be adhered shall be as provided under Civil Procedure Code, 1908 (CPC). This means that
the commercial court must mandate time-bound delivery of events. These events include First hearing
of the case; Filing of the statement of defense by defendant; Completion of the evidence period; Filing
of testimony by expert; and Submission of the final judgment by the commercial court.
 These measures should be notified appropriately through the relevant legislation or notification issued
by the state governments.

Recommendation 59: Recommendation 60:

Limit the maximum number of adjournments that can Limit the adjournments to unforeseen and exceptional
be granted in commercial disputes circumstances
Adjournments on frivolous grounds is the main cause for judicial delays. Measures such as, limiting maximum
number of adjournments and limit adjournments to unforeseen and exceptional circumstances in the commercial
disputes can help reduce the unwarranted delay in cases. Order XVII Rule 1 (a) (b) (c) (d) of the Code of Civil
Procedures, 1908 limits the grant of the adjournments in a civil trial to unforeseen and exceptional circumstances.
These provisions need to be adhered in letter and spirit. Accordingly, a mechanism to track the number of
adjournments and reasons for adjournments for commercial courts needs to be created.

Recommendation 61:
Merge payment of court fees and process fees into a single transaction/procedure
Multiple payments impose additional burdens on lawyers and litigants, whereas merging these fees may not only
reduce the burden, but may also enable easier online fee payment as a part of electronic case flow management
systems.

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Recommendation 62:
Publish model commercial contract templates in public domain in downloadable and editable format along with
instructions to use them
Model contract templates and guidelines can help standardize contracts with standard terms and conditions that
are easily enforceable. The format required for a contract should be user-friendly with a facility to download and
edit it so that the commercial terms and conditions can be filled in the contract template. The absence of such
templates means various contracts are executed with loopholes that can be exploited by filing a court case.

13. Paper-less Courts

Recommendation 63: Recommendation 64:
Design and implement a system to allow for e-filing for Design and implement a system to allow for e-summons
commercial disputes in Commercial courts for commercial disputes in Commercial courts
Recommendation 65: Recommendation 66:
Design and implement a system to allow for publishing Design and implement a system to allow for e-payments
e-cause lists for commercial disputes in Commercial for court fees and process fees for commercial disputes
courts in Commercial courts
Recommendation 67:
Design and implement a system to allow for issuing digitally signed court orders in Commercial courts
 The questions above examine the state’s readiness to introduce electronic court systems in the Commercial
courts. Globally such systems have been found to significantly reduce the time and cost associated with
filing, administering, tracking and resolving legal disputes; further, they allow for a more efficient record
management in courts and thereby reduce the administrative costs associated with judicial administration.
The questions above seek to examine whether an electronic case management system exists, and, if so,
whether it includes features that allow electronic summons, payments, cause lists and court orders etc.,
thereby increasing the transparency of court’s decision-making process. Online payment should also be
integrated with the payment gateway.
 Globally, more advanced systems are also integrated with property records, thereby allowing the land
records to also cover legal encumbrances so that the potential land-buyers are aware of outstanding
litigation and court judgments on the land they are planning to purchase.

14. Property Registrations - Enablers

Recommendation 68: Recommendation 69:
Digitize land transaction deeds of last 2 years at all Digitize land records of last 2 years at all land records
sub-registrar offices and make the same available on an offices and publish the updated land records online in
online system public domain
Recommendation 70: Recommendation 71:
Digitize land records of last 2 years at local Digitize Property tax payment records of last 2 years
municipality office and publish the updated land with a functionality to view balance payments at all
records online in public domain local municipality offices and publish the updated
records online in public domain
Recommendation 72: Recommendation 73:
Integrate last 2 years’ data at all sub-registrar offices,
Digitize cadastral maps of all rural areas in the state all land records offices and all local municipality
offices to facilitate property wise mapping of
transactions
Digitized land records across various State Government agencies can be beneficial in increasing the efficiency
and effectiveness in property registration and maintenance:
 Digitized land ownership records at the sub-registrar i.e. land transaction deeds including sale deeds,
transfer deeds, lease deeds, etc. so that sub-registrar can easily verify land ownership when new
transactions are initiated on the land. In addition, it allows prospective land-buyers with a single point of
contact to determine land ownership by checking the required historical documentation.
 Digitized land records (Records of Rights (textual), Khatoni, Khasra, Mutation Register, Village/ Tehsil

Page | 18
 / District Note Book) at all the land records office in the State can help ensuring that the requisite
information on ownership is available when issuing Property Cards to citizens, and for pre-mutation
verification of land transactions
 Digitized land records covering compliance history of property tax at the local municipality office in the
State can help effectively target property taxes to the correct owners, as well as conducting verifications
to ensure that all property taxes are paid upon submission of construction permit applications
 Digitalized cadastral maps (spatial records) of all rural areas in the state
 Digitalized land records at all sub registrar offices, survey and land record offices, municipal
corporations and revenue department in the State should be available online in public domain and should
have records for last 2 years
 It should be noted that the ideal solution is a single integrated database that allows real-time access from
all relevant land related agencies and also allows the agencies to update the relevant data. This reduces
the burden posed by digitizing records by slashing the costs of maintaining separate systems and
databases for each department. The systems at all agencies should be integrated in a manner that allows
all transactions for a given piece of land to be captured adequately, thus providing the government as
well as potential buyers with a clear indication of land ownership.

Recommendation 74:
Ensure that statistics of land disputes is maintained in land record offices and also, ensure to publish list of current
disputes in public domain
The quality of land administration has various dimensions such as reliability of infrastructure, transparency of
information, geographic coverage, land dispute resolution and equal access to property rights. The quality of
framework for property registration and the accessibility of dispute resolution mechanisms in a state is a key factor
for business. The state should make publicly available the statistics of land disputes (such as boundary disputes,
tenure rights) at the revenue courts in each districts. The statistics may be made available for the past few years that
highlight the number of land disputes and/or the land dispute rate (i.e. the percentage of land disputes out of the total
number of disputes in the first instance) and also provide the cause list of pending/ongoing disputes. Thereby
creating database on the history of land disputes w.r.t any property.

Recommendation 75:
Integrate all sub-registrar offices with PAN and Aadhar data to create a State level database to verify the accuracy of
documents
Various documents are required to be submitted for a business (the buyer) to purchase a property from another
business (the seller) and to transfer the property title to the buyer’s name so that the buyer can use the property for
expanding its business, use the property as collateral in taking new loans or, if necessary, sell the property to another
business. To minimize the potential for disputes, the documents should be verified from a national database for
accuracy. The sub – registrar offices should be able to check the accuracy of the documents submitted by the parties
by integrating or accessing the PAN (for business) and Aadhar (for individuals) database.

Recommendation 76:
Integrate land record databases with Judicial database (Revenue) to provide complete picture of current land
disputes
When an entrepreneur wishes to purchase land, he must first ensure that there are no encumbrances – legal,
judicial or otherwise – on the property. This due diligence involves the employment of a lawyer, because at
present there are three separate databases that must be consulted: the land records database to ensure ownership
of the property by the seller, also searches of mortgage and judicial records to ensure there are no pending legal
or financial encumbrances. Combining this information in a single database will significantly reduce the burden
of obtaining complete ownership and encumbrance data on land parcels. Judicial database pertaining to pending
cases should be integrated which requires automation of the Revenue Courts. The land disputes related with
revenue land is registered under Revenue Court and State needs develop web-based integration of all Revenue
Courts with all land record offices.

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Recommendation 77:
Integrate the mutation process with the registration process and allow intimation of mutation as soon as the deed is
registered
Advanced automation approaches which are already under development in India involve, integration between
registration at the sub-registrar office and mutation at the land records office. This integration includes not only the
data-sharing above, but also focuses on process integration. This allows newly registered deeds for property sales to
automatically intimate the mutation process to the relevant agency (Land records office, electricity department,
water department, other utility department, etc.). This also reduces the number of interfaces between the user and
the state government and thus promotes greater transparency.

15. Property Registration – Online system

Recommendation 78: Recommendation 79:
Publish information about the procedure and Provide model deed templates for sale, gift, lease,
comprehensive list of documents required for property mortgage and rent in downloadable and editable format
registration on the Department’s web site along with instructions to use them

Recommendation 80: Recommendation 81:

Design and implement a system that allows online The online system should have the facility of auto
application, payment for submission and verification of calculation of the applicable fee and stamp duty as per
document and mandate that all applications are the valuation of the property
submitted online
Recommendation 82: Recommendation 83:
The online system should have the facility of auto The registration of the transaction deed to be provided
generation of appointment (date and time) on making to related parties on the same day of appointment
the required payment online at respective SRO offices

Recommendation 84: Recommendation 85:

Ensure that the system allows user to download the Define clear timelines mandated through the Public
final signed approval certificate from the online portal Service Delivery Guarantee Act (or equivalent)
legislation for document registration and mutation of
land
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is uploaded on the
website.
 Model templates for deeds including sale, gift, lease, mortgage and rent should be made available online to
standardize deeds. The format required for the deeds should be user-friendly with a facility to download and
should be editable so that details can be filled in the template.
 The application to be made mandatorily online, through a system with the following features:
o Applicants should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o System should have an auto calculator that calculates fee, stamp duty and other charges based on the
value of the property, circle rate, etc.
o System should provide auto generated date and time for appointment. Thee system should also have
a facility to modify the date and time for appointment.
o Once registered, the signed registered deed – either digitally signed or signed manually and scanned
– should be made available for download from the website by the user.

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 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act) and Registered
deed should be made available on the day of appointment. The timelines should be highlighted clearly on the
portal along with the supporting documents.

16. Inspection Reform Enablers

Recommendation 86: Recommendation 87:
Institutionalize a Central Inspection System Design and develop an online inspection system for
responsible for undertaking compliance inspections of scheduling of inspections
the departments concerned
Recommendation 88:
Ensure that the selection of establishments for inspection is done using computerized risk assessment and
allocation of inspectors is undertaken under the Central Inspection System
A good regulatory practice for business inspections requires coordination among various inspection agencies to
ensure that all relevant risks are properly addressed during the inspection process. However, agencies within
States often carry out inspections in silos. They refrain from sharing information with other departments and do
not communicate regularly with the businesses.

It is proposed to develop and implement a Central Inspection System (integrated risk based shared inspection
system) for States covering Labour, Factories and Boilers, State Pollution Control Board of the State along with
compliance behavior of specific businesses. In this context, inspections refer to periodic compliance inspections
under various Acts and rules. The Central Inspection System (CIS) shall be responsible for inspections whereby
inspectorates will directly report online in the system to synchronize multiple inspections.

Coordination of inspections can benefit both businesses and inspectors in several ways. First, it allows for more
effective planning of inspections by ensuring that inspector visits may be coordinated or synchronized. Second, it
allows for the data collected through inspections to be used effectively across departments. Anecdotal evidence
suggest that businesses show a pattern of systematic and/or repeated violations of regulations i.e. if a business is
non-compliant with tax regulation it is much more likely to be non-compliant with other regulation. Collection
and effective analysis of inspection data can also help the state develop effective compliance histories for firms,
through collating information across departments, and allow for this information to be used in categorizing risk
for particular industries by incorporating compliance history as one of the risk-determination criteria.

Key elements of the Framework

Few key benefits of Central Inspection Framework are as follows:
 A central inspection system will streamline the inspection procedures in the States/UTs
 It will ensure timely and synchronized inspections between various departments
 It will bring clarity in inspections, its frequency and reduce duplications
 It will improve cooperation and coordination between inspection authorities
 It will enable Unified review of information about past inspections, schedules of controls, registries of
controls, and compliance with Inspection Laws
 It will eliminate the regulatory uncertainty that generates an inspection.
 It will improve implementation practices, increase compliance and reduce the budgetary costs to
governments.
Proposed operational model
 Form a Central Inspection System (CIS): Integrate the independent inspection systems at various
departments to form a Central Inspection System. CIS will be responsible for synchronization of
multiple inspections and all inspections will be directed through the system.
 Inspection schedule: Generate computerized list of units to be inspected based on risk levels of the
businesses (depends on sector, history of compliance, etc.)
 Allocation of the inspection resources (supervision-monitoring): Decision is based on a risk assessment
analysis or predefined parameters and analyzed data from the field.
o Inspectors to be informed directly to conduct the inspections based on the inspector
scheduling

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 o Send inspection forms and templates before the inspection process to the establishment
(business)
o Inspector scheduling on rotational basis i.e. mandate that same inspector cannot perform
two consecutive inspections of the same business.
 Allow third party inspections and introduce self-certification for the low & medium risk units and
inspections based on their past records (Frequency of defaults, consistency in the compliance, etc.)
 The final report to be submitted within 48 hours to the CIS
 Also a final report is to be submitted to concerned Department and establishment through CIS
 Build capacity of the inspectors and inspectorates by introducing trainings for enhancing the skill sets.
Introduce cross training of the inspectors for different inspections to optimize use of resources.
 Surprise inspections to be done based on complaints with specific permission from head of the
respective department.

Recommendation 89: Recommendation 90:

Differentiate compliance inspection requirements based Exempt low risk industries with a history of
on risk profile (such as High, Medium and Low risk) of satisfactory compliance from labour compliance
industries under all labour laws inspections, or allow self-certification in lieu of
conducting physical inspections under all Labour laws
Recommendation 92: Recommendation 93:
Differentiate compliance inspection requirements based Allow for third party certifications instead of
on industry pollution categorization such as Red, Departmental inspections under all labour and
Amber, and Green under all environment/pollution environment/pollution laws for medium risk industries
laws
Recommendation 94:
Exempt Green industries with a history of satisfactory compliance from environmental compliance inspection, or
allow self-certification (in lieu of conducting physical inspections)
These recommendations are targeted to provide streamlined compliance inspection regimes for industries on the
basis of their relative risk or hazard levels. The prerequisite to enable this streamlined and differentiated
environment is first to make provisions for different categories of industries based on the risk posed by the
industries.
The relative risk of an industry arises from a combination of factors. From an environmental compliance
perspective, the risk categorization is already complete, as most states already classify industries as either Green,
Red or Amber based on their pollution and discharge potential. In the area of Labour inspections, there are a
number of other factors that must be taken into account, including nature of production processes, number of
employees, etc.
From a Labour perspective, therefore, the first step will be to identify these criteria or underlying factors, and
categorize existing industries into Low, Medium or High risk categories on the basis of these criteria. To fully
guard against the potential of fraud, a satisfactory compliance record for three or more years can be counted as a
criteria for Low or Medium risk industries. These categorizations should be notified through a State notification
to be fully enacted.
Once enacted, the objective of these recommendations is to promote a differentiated and streamlined inspection
environment for businesses on the basis of their Labour or Environmental risk, as follows:
 Low Labour Risk and/or Green industries that exhibit a satisfactory history of compliance can be
exempted from compliance inspections altogether, or the compliance inspection can be substituted with
a self-certification mechanism.
 Medium Labour Risk and/or Amber industries that exhibit a satisfactory history of compliance can have
their physical compliance inspections replaced with a third party inspection, conducted by an empaneled
list of accredited third party inspection agencies.
 High Labour Risk and/or Red industries will have to undergo physical compliance inspections annually
as per current practice.
To ensure that industries are not taking undue advantage of these streamlined inspection regimes through
misrepresentation, states may choose to continue to allow surprise inspections to occur on the basis of complaints
received and subject to approval from the Head of Office/Magistrate of the State Government as appropriate.

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Recommendation 91:
Allow for synchronized/joint- inspection under all of the following acts
I. Inspection under The Equal Remuneration Act, 1976
II. Inspection under The Factories Act, 1948
III. Inspection under The Maternity Benefit Act, 1961
IV. Inspection under The Minimum Wages Act, 1948
V. Inspection under The Shops and Establishments Act (as applicable)
VI. Inspection under The Labour Welfare Fund Act (as applicable)
VII. Inspection under The Payment of Bonus Act, 1965
VIII. Inspection under The Payment of Wages Act, 1936
IX. Inspection under The Payment of Gratuity Act, 1972
X Inspection under The Contract Labour (Regulation and Abolition) Act, 1970
Businesses that have to deal with multiple inspections from the same agency several times a year face higher
compliance time and cost burdens in dealing with inspections. The inspections above are related to the compliance
function of the Labor Department, and can easily be converted into a single joint inspection. To enable this, the
Labor Department must issue a notification, as well as publish a single checklist and procedures for undertaking this
single inspection. This can drastically reduce the burden on the limited inspector base available to states as well, and
enable more efficient identification of violations while laying out comprehensive plans to correct any violations that
are detected.

17. Inspection of the business premises for VAT (Value Added Tax) registration
Recommendation 95: Recommendation 96:
Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 97: Recommendation 98:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 99:
Design and implement a system for computerized allocation of inspectors
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. The procedure should clearly highlight the step by step
movement of the application within the department. It may be supplemented with process maps if
available; in any case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where they
can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This can
reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of inspections
and the available human resources by reducing the burden on low risk business while ensuring that high-
risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.

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18. Inspection by Building Proposal Office/ relevant agency as part of obtaining
construction permit

Recommendation 100: Recommendation 101:

Publish a well-defined inspection procedure and Design and implement a computerized system for
checklist on department’s web site identifying building/area that needs to be inspected
based on risk assessment
Recommendation 102: Recommendation 103:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 104:
Design and implement a system for computerized allocation of inspectors
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. The procedure should clearly highlight the step by step
movement of the application within the department. It may be supplemented with process maps if
available; in any case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.

19. Inspection by Appropriate Authority for felling trees (prior to commencement of

construction activities)

Recommendation 105: Recommendation 106:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 107: Recommendation 108:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 109: Recommendation 110:
Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. The procedure should clearly highlight the step by step
movement of the application within the department. It may be supplemented with process maps if
available; in any case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection

Page | 24
 reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

20. Inspection by Building Proposal Office/ relevant agency as part of obtaining

occupancy/completion certificate

Recommendation 111: Recommendation 112:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 113: Recommendation 114:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 115:
Design and implement a system for computerized allocation of inspectors
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. The procedure should clearly highlight the step by step
movement of the application within the department. It may be supplemented with process maps if
available; in any case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.

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21. Compliance Inspection under The Equal Remuneration Act, 1976

Recommendation 116: Recommendation 117:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 118: Recommendation 119:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 120: Recommendation 121:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 26
22. Compliance Inspection under The Factories Act, 1948

Recommendation 122: Recommendation 123:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 124: Recommendation 125:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 126: Recommendation 127:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 27
23. Compliance Inspection under The Minimum Wages Act, 1948

Recommendation 128: Recommendation 129:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 130: Recommendation 131:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 132: Recommendation 133:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 28
24. Compliance Inspection under The Shops and Establishments Act (as applicable)

Recommendation 134: Recommendation 135:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 136: Recommendation 137:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 138: Recommendation 139:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 29
25. Compliance Inspection under The Payment of Bonus Act, 1965

Recommendation 140: Recommendation 141:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 142: Recommendation 143:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 144: Recommendation 145:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 30
26. Compliance Inspection under The Payment of Wages Act, 1936

Recommendation 146: Recommendation 147:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 148: Recommendation 149:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 150: Recommendation 151:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 31
27. Compliance Inspection under The Payment of Gratuity Act, 1972

Recommendation 152: Recommendation 153:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 154: Recommendation 155:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 156: Recommendation 157:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 32
28. Compliance Inspection under The Contract Labour (Regulation and Abolition) Act,
1970

Recommendation 158: Recommendation 159:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 160: Recommendation 161:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 162: Recommendation 163:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 33
29. Compliance Inspection under The Water (Prevention and Control of Pollution) Act,
1974

Recommendation 164: Recommendation 165:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 166: Recommendation 167:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 168: Recommendation 169:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 34
30. Compliance Inspection under The Air (Prevention and Control of Pollution) Act, 1981

Recommendation 170: Recommendation 171:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site establishments that need to be inspected based on
computerized risk assessment
Recommendation 172: Recommendation 173:
Mandate online submission of inspection report within Allow establishments to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 174: Recommendation 175:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 Inspectorates should define risk criteria to ensure that they are programmed into the system to make sure
that inspections occur only for certain high-risk categories, instead of in 100% of the applications. This
can reduce burden on the limited inspectors, while increasing the efficiency and effectiveness of
inspections and the available human resources by reducing the burden on low risk business while
ensuring that high-risk businesses are adequately monitored.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.

Page | 35
31. Inspection under the Legal Metrology General Act, 2009 and Rules

Recommendation 176: Recommendation 177:

Publish a well-defined inspection procedure and Design and implement a system for identifying
checklist on department’s web site licensees that need to be inspected

Recommendation 178: Recommendation 179:

Mandate online submission of inspection report within Allow licensees to view and download submitted
48 hours to the Department inspection reports of at least past two years
Recommendation 180: Recommendation 181:

Design and implement a system for computerized Mandate that the same inspector will not inspect the
allocation of inspectors same establishment twice consecutively
These recommendations cover the verification process for all classes of weights and measures as prescribed under
the Legal Metrology (General) Rules, 2011. This is also to cover any verification process that the states may have
included in their respective enforcement rules.
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps and the comprehensive inspection checklist/form is
published online on department's website. It may be supplemented with process maps if available; in any
case, the details should be published explicitly and should not refer to Acts or rules.
 A specific provision must be made by the state government or by the associated agencies that inspection
reports must be submitted within 48 hours through a notification or circular.
 The inspector allocation system must be linked to the online application and approval system, and the
approval authority should be able to allocate inspectors once applications are submitted either by
jurisdiction or randomly. The inspector should also have an online workspace within the system where
they can see their inspection workflows and submit their reports.
 The signed inspection report – either digitally signed or signed manually and scanned – should be made
available for viewing and downloading by the user on the portal or the website. The inspection reports of
last two years of the establishment should be made available for the establishment.
 Inspectors should be assigned randomly for inspections in consecutive years in order to increase
transparency and reduce potential for corruption.
32. Single Window System
Recommendation 182: Recommendation 183:
Establish a dedicated single window agency as the sole Ensure that the single window agency has been set up
point of contact for setting up a business in State through a Legislation
To be truly effective, a single window system requires a few key policy enablers including:
 A single dedicated agency should be designated to act as a single window system. This body can be an
existing state government body, e.g. the investment promotion agency or the Industries department, or can
be a new entity that is established for the purpose of providing the single window service. In either case, the
agency must be mandated to be a single point of contact for all business start-up licensing, so that
entrepreneurs do not have to visit multiple agencies.
 In order to empower the body or setup to effectively carry out the functions above, it must be given explicit
mandate through a legislation. The absence of legislation may mean that the single window system is not
effective at coordinating among the various agencies, thereby limiting its effectiveness.

Recommendation 184: Recommendation 185:

Define clear timelines mandated through the Public Define clear timelines mandated through legislation or
Service Delivery Guarantee Act (or equivalent) through notification under the Public Service Delivery
legislation for issuing all approvals being provided by
Guarantee Act for issuing intent letter, granting
single window agency sanction and disbursal of applicable incentives as per
the industrial/sectoral policy in the State
 Once established, the single window system should establish and publicize through its website clear

Page | 36
 timelines for each service that it provides, so that entrepreneurs are aware of the time it takes to meet
their regulatory compliance requirements.
 In order to have an effective functioning of single window system, the time lines should be mandated
through a legislation such as Public Service Guarantee Act or an equivalent legislation. The timelines
should be highlighted clearly on the portal along with the notification. The absence of such legislation
may lead to non-adherence of timeline and an ineffective system. The services related to disbursal of
incentives under various industrial and sector specific policies should also be covered under the Public
Service Guarantee Act or an equivalent legislation. The services such as issuing intent letter, granting
sanction, disbursal of applicable incentives and any other activity related with disbursal of incentives
under the State specific industrial and sectoral policy should be included.

33. Online Single Window System

Recommendation 186: Recommendation 187:
Design and implement an online single window system Implement a standardized online Common Application
with functionality for online application submission, Form (CAF) combining applications of all services
payment and approvals and mandate that all wherein common information such as applicant’s
applications are submitted online name, project details, address etc. and common
documents are required to be provided only once
through single window system
Recommendation 210: Recommendation 211:
Mandate that all queries/clarifications related to Ensure that the Single Window System sends out
investor's application are sought once and within 7 SMS/e-mail notification to the applicant as and when
days of receiving the application the application is submitted and/or query is raised
and/or application is approved/rejected
An effective single window system can also be placed online, so that entrepreneurs can apply for, track status and
receive their registrations in an efficient manner mandatorily though online system. An effective online single
window should have the following features:
Entrepreneurs should be able to fill out, upload documents and submit the application form online;
 Mandated by a legislation for submission of all the application in an online mode with no requirement of
submissions of hard copy
 The user can pay all associated fees online;
 Once submitted, the applications are processed and approved by each approving agency online, and not
through a manual or hard copy process;
 The query/clarification raised by the reviewing/approving officer after submission of the application
should be raised only once and the timeline for raising the query should be 7 days from the date of
submission of the application
 The user can track the status of his applications online using the portal;
 The Single Window System should be integrated with SMS gate way and emails so that the entrepreneur
should get notification on at critical stages of application processing – application and query submission,
application approval or rejection at various level, query submission and response, etc.
 Once approved, the user can obtain the approval or registration certificate online through the portal.
 Any other third party has an option to verify online about the authenticity of the approval or registration
granted by each agency

An important first step in an effective single window system is the formulation of a Common Application Form
(CAF), which combines the applications for all services provided by the single window system. At the same time,
a CAF streamlines and documents the need for entrepreneurs to submit the same information multiple times to
multiple agencies. The CAF should follow the principle of “Information and Document once submitted by the
entrepreneur during any point of his investment cycle should not be asked again by any other agency for approval
in the State”. The CAF should be easily accessible to entrepreneurs from the online portal. The state government
should mandate the validity of the CAF and make it acceptable to all agencies covering all the services in the
State related with industries and businesses.

Page | 37
Recommendation 188-207 and 212:
Ensure Consent/ Authorization/ Registration/ Permission/ Incentives/ License/ Approval/ NOC/ Renewal under
following Acts/Regulations/Procedures is provided as a service through the online single window system
facilitating the online application submission, payments, tracking of status, approvals and issuance of the
certificate(s)
1. Registration under The Building and Other 8. Permission for engaging contractor for labour
Construction Workers (Regulation of 9. Factories license
Employment and Conditions of Service) Act, 10. Factory building plan approval’ (under the
1996 Factories Act, 1948)
2. Registration certificate of Establishment Inter 11. Registration under Boiler Act
State Migrant Workmen (RE&CS) Act,1979 12. Change of land use
(License of Contractor Establishment) 13. Approval of building plans
3. Registration under weights and measures, 14. NOC from Fire Department
1998 15. Renewal of Consent to operate (under Water
4. Consent to establish (under Water Act & Air Act & Air Act)
Act 16. Renewal under Shops and Establishments Act
5. Consent to operate (under Water Act & Air 17. Renewal under Factories license
Act 18. Renewal under Registration under Boiler Act
6. Authorization under Hazardous Waste Rules 19. Electricity connection
7. Registration under Shops and Establishments 20. Water connection
Act 21. Incentives under Industrial/Sectoral Policy
These questions aim to assess the services provided by the single window system. A truly comprehensive single
window system should provide at least above mentioned Consent/ Authorization / Registration/ Permission/
Incentives/ License/ Approval/ NOC/ Renewal services:
In addition, the single window system should also seek to provide services related to other state economy-wide
and industry-specific registrations – although these are not considered within the scope of this assessment, the
delivery of all services helps entrepreneurs effectively complete their regulatory compliance requirements with
minimal hassle.
Each of the registration services enlisted above should be provided through the single window system in a
manner that
 The application can be made in the single window system (in case of an online portal it should not be
simply redirected to another portal/ website)
 The application status can be enquired through single window system
 The application approval certificate is provided through single window system
 The approved application can be verified on the through single window system
Note: The change in land use is for unplanned areas.

Recommendation 208: Recommendation 209:

Publish information on the procedure, timelines and a Ensure that incentives of all applicable
comprehensive list of documents that are required to be industrial/sectoral policies are applied through a
submitted for applying for various incentives in the state common form without the physical touch points

The ideal system covered by these questions include the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure should
clearly highlight the step by step movement of the application within the department.
 It may be supplemented with process maps if available; in any case, the details should be published
explicitly and should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 Online Common Application Form (CAF) for applying for incentives should be developed for all sectoral
policies and Industrial Policy of the State. The CAF should follow the principle of “Information and

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 Document once submitted by the entrepreneur during any point of his investment cycle should not be asked
again by any other agency for approval in the State”.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the CAF online for incentives;
o Once submitted, the applications are processed and approved by each agency online, and not
through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not
required to physically present and submit all documents for verification before the certificate is issued.
Instead, entrepreneurs can use digital signature certificates to submit their documents through the online
system.

34. Availability of Land / Infrastructure

Recommendation 213: Recommendation 214:

Ensure information on land banks for industrial use is Design and implement a GIS system to provide details
publicly available online at one place about the land earmarked for industrial use across the
State
Recommendation 215:
Ensure that the GIS system provides details about available infrastructure such as road, water, electrical
substation and poles, proximity to National/State highways, Railway lines etc. for all industrial land banks of
State

 Numerous studies cite access to land as a constraint faced by business in India, and the first step in
solving this problem is to ensure access to information on the availability of land for business.
 Many states have already established land banks to provide serviced land to investors – however, this
information is often not publicly available. A necessary step would be to first list the number of land
banks available in the state for industrial use, along with their respective areas. The list should be as
comprehensive as possible, and should cover all the available land banks in the state. Second, this
information should be made available online on an appropriate website – it can even be an informational
service provided by the single window. Additionally, the State should have a framework (process to be
followed/ criteria such as proximity to water bodies etc. to be used) to earmark land parcels with the
kind of industry that can be setup on such land
 To ensure more effective investor enquiry, it would be useful to allow users to filter the data on land
banks that is on the website by the type of industry that is permitted to be established on the land. This
will allow entrepreneurs to more accurately target their inquiries to land banks that support their
intended business.
 Providing such information on industrial land availability can also be evolved into a more modern
system by using GIS maps. Such systems allow for a multitude of layers to be place upon geospatial
maps to better understand the quality of the land available. From an infrastructure perspective, the GIS
system can provide information and details on road infrastructure, water pipelines, sewerage systems,
electricity connections and gas pipelines that are available or accessible to each plot of land. This
information should be as comprehensive as possible, covering all the land banks in the state. The system
should also clearly highlight the type of industries that are set up and the common facilities that are
available for the industries across the state

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35. Land Allotment

Recommendation 216:
Define objective criteria, applicable for all industrial land, for evaluating land allotment application for industrial
use

Once an entrepreneur has identified a plot of land which meets the requirements of his intended venture, he
requires clarity on how he can access the land itself. Different states follow different principles in terms of
allocating land: some use a first-come, first-serve model, while others use an objective weighted criterion in
evaluating investment proposals. Each state should however define the criteria used in defining land allocation
clearly through a notification or legislation, and make this information available online.

Recommendation 217: Recommendation 218:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required to be Service Delivery Guarantee Act (or equivalent)
submitted for land allotment on the web site legislation for land allotment

Recommendation 219: Recommendation 220:

Design and implement a land allotment system that Ensure that the system allows users to download the
allows online application and payment without the final signed land allotment certificate from the online
need for a physical touch point for document portal
submission and verification and mandate that all
applications are submitted online
Recommendation 221:
Allow third parties to easily verify the land allotment certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points from the time of application process till the allotment of land. This
means that entrepreneurs are not required to physically present and submit all documents for verification
before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their
documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and

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 scanned – should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting
the portal. Current/valid issued certificates or granted approval should be made available in the public
domain for third party.

36. Construction Permit Enablers

Recommendation 222:
Define clear timelines mandated through the Public Service Delivery Guarantee Act (or equivalent) legislation for
processing of application for conversion of land/ change in land use (from the date of application) for land outside
of industrial parks/IDCs
The absence of clear timelines for processing of applications for conversion of land/ change in land use for land
outside industrial parks / IDCs may delay the process through frivolous practices or other means, and may even
introduce irrelevant witnesses to delay. Clear timelines are mandated through a Public Service Guarantee Act (or
equivalent Act). The timelines should be highlighted clearly on the portal along with the supporting documents.

Note: The change in land use/land conversion is for unplanned areas.

Recommendation 223: Recommendation 224:

Enact a comprehensive uniform building code/building Ensure that the uniform building code/building by-law
by-law applicable to the entire State include provisions for risk-based classification of
buildings
Construction projects in India today are subject to a wide variety of regulations and controls, often spanning a
multitude of laws, regulations and notifications that are not available in a single document. The more developed
the urban area, the higher the number of potential agencies and permissions involved in construction permit
approvals, and therefore the higher the number of regulatory compliance requirements. Therefore, a
comprehensive formal building code can unite all these regulations into a single document that outlines all
requirements with which a building must abide, thereby increasing access to information on the regulatory
requirements associated with each construction permit. Depending on the complexity of the code, the
requirements can also be integrated into automated building permit approval software using AutoCAD, to ensure
that the ULB can use software to conduct an initial scrutiny of submitted construction permit approval
applications, thereby reducing the burden on the ULB.
The development of a formal building code also allows for the integration of provisions related to risk based
classification of buildings. Not all buildings pose equal health or safety burdens – some buildings may in fact be
lower risk in nature, depending on the proposed usage, the proposed occupancy, the height and a variety of other
factors. A risk-based building classification enables the introduction of fast-track mechanisms for low-risk
buildings, thereby freeing up time of ULB officials to spend more time thoroughly reviewing and ensuring
structural and public safety of higher risk buildings.

Recommendation 225:
Ensure that the uniform building code/building by-law includes accreditation programs and clear responsibilities
for professionals including architects and engineers engaged in the construction process
The building code or by-laws are an ideal mechanism to introduce accreditation and registration programs for
professionals involved in construction. The by-laws should lay out the criteria required for registration or
accreditation, but should also specify the specific responsibilities and liabilities that professionals have
throughout the construction process. Currently, most ULBs in India define clear responsibilities and liabilities for
faults until the construction is complete; however, many do not include provisions and liabilities once the
building is in use. Defining clear responsibilities and liabilities can not only unlock the insurance industry for
architects, but it can also reduce the liability on the ULB to ensure that the building as proposed is fit for use.
Instead, if the liability is clearly on the shoulders of the professionals, there is more incentive to ensure that the

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building is of sufficient quality, while also reducing the burden on the ULB to take responsibility for damage or
accidents.

Recommendation 226:
Define mandatory qualifications for architects and structural engineers in the uniform building by-law applicable
in State
In order to have an effective system of accreditation of experts like architects and structural engineers, the
Government should notify the qualifications required to be accredited uniform building by-law applicable in
State. The accreditation of architects and structural engineers can be a first step in moving to a trust-based system
of construction permitting – a project that is staffed with accredited architects and structural engineers are more
likely to abide by construction and building safety requirements, and may require less scrutiny and review than
projects staffed by unaccredited professionals. This allows the ULB to dedicate its limited human resources to
ensuring the quality of high-risk buildings while remaining relatively reassured that other buildings are being
built responsibly by accredited professionals. In addition, making information on accredited professionals
available publicly can help the community by identifying the best professionals for construction projects.

Recommendation 227:
Develop legally valid master plans/zonal plans/land use plans for all urban areas and make it available online in
public domain

Plans for urban areas designate spaces for commercial, residential and other use within urban areas. Once
developed, such plans can provide all parties in construction projects with clarity on the kinds of buildings
allowed in certain areas, and allow land owners to understand what kind of buildings can be built on their land.
Once these plans are published online, users are able to access this information easily and take effective decisions
when designing building projects. Plans that are tied effectively to building codes, or clearly outline the building
restrictions or conditions on specific projects can help reduce the burdens faced by ULBs by reducing the number
of ineligible or incorrect building plans for construction projects. In addition, this information can be codified in
building plan approval software to ensure that only building plan applications that meet the required criteria as
per the plan are allowed to be submitted.

Recommendation 228:
Establish a dedicated conflict resolution mechanism for land and construction permits

With regard to land use and building code administrative decisions, the absence of independent professional appeal
mechanisms can act as another disincentive for builders to seek solutions consistent with legal and technical
requirements. Appeal mechanisms can be in place through the formal judicial system, but the courts are usually slow
and may not have the required expertise in dealing with compliance issues. These mechanisms can help reduce the
burden on courts and the legal system to address appeals dealing with disputes between building professionals and
permitting authorities on matters related to the interpretation of the building code or “sufficiency of code
compliance”, in relation to construction projects. Such dedicated conflict resolution bodies may be established at
ULB/IDCs.
Secondly, in case a regulatory authority registers or certifies building practitioners, an independent appeal body
should be established to deal with appeals from practitioners concerning registration and certification.

Recommendation 229: Recommendation 230:

Conduct a survey of all industrial areas of State and Publish online the detailed information on applicable
create a list of plots with trees and publish online a replanting requirements for plots with varying tree
comprehensive information on type of trees populations
The Business Reform Action Plan for States/UTs provides states with mechanisms for streamlining the issuance
of Tree-Cutting Permissions or Tree NOCs.
The first step is to conduct a survey of the trees in all industrial areas in the state, and create a list of plots with the
number of trees. This is understandably a measure that requires significant effort and time, and is therefore a

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medium-term objective, but it can begin through pilots in areas where the vast majority of new buildings are
being built at present. Simultaneously, the state should determine and publish online information on the
replanting requirements for the state. These requirements may stipulate the need to replant an equal number of
trees, or to pay a fixed cost per tree that is to be cut down. Given the importance of trees, these requirements can
be designed to escalate in intensity as the number of trees to be cut down increases.
Finally, once the survey is complete and the replanting requirements have been determined, applicants may be
allowed to avail of a self-certification mechanism that allows them to submit either evidence of deposit of the
total sum to the government’s funds, or evidence of replantation. In the long run, this scheme can reduce the
burden to inspect and administer the issuance of these permissions on the government, while making it easier for
business to construct their buildings while ensuring that environmental interests are protected.

Recommendation 231:
Allow authorized architects to issue the completion certificate at all urban areas and IDCs, instead of requiring a
separate completion certificate to be issued
This recommendation is valid for states where separate completion and occupancy certificates are issued by the
ULB or municipal body. An ideal approach for states where this continues to be the case is to merge the completion
and occupancy certificates into a single certificate; however, if this is difficult to do, it is recommended that the
issuance of the compliance certificate is given to the authorized architect, following which the
municipality/ULB/IDC issues the occupancy certificate.

Recommendation 232:
Implement a system to allow approval based on third party certification (during construction and/or completion
stage, as applicable) of structural design and architectural drawings by authorized structural engineers and
architects respectively across all urban areas and IDCs
Once the state has sufficiently strong accreditation and qualifications for architects and engineers that allows the
ULB to monitor quality of building processes, the state can move to a more advanced model where building plans
may be submitted on the basis of self-certification by these accredited professionals. This can reduce the burden
on the ULB to review the drawings prior to approval, and instead allow them to rely on the accredited
professionals to ensure that the building by-laws are complied with in the construction process. Further, this
allows the ULB to function effectively without requiring a large technical staff to be maintained. This provision
of course requires the architects and engineers to have clearly defined responsibilities and liabilities (see
Recommendation 64). This also requires sufficient controls to ensure that penalties may be imposed if non-
compliance is discovered through random audits by experienced professionals.

Recommendation 233:
Combine all affidavits & undertakings required to be submitted for obtaining the building plan approval into one
affidavit/undertaking

While applying for a building plan approval, the applicant is required to be submit various affidavits/undertakings
on stamp paper to the building permitting authority. To reduce the time and procedures in obtaining the approval,
the various undertakings/affidavits may be integrated into a single document. The affidavit/undertaking may be
then submitted online on the building plan approval portal of the permitting authority.

37. Building Plan Approval

Recommendation 234: Recommendation 235:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents including pre- Service Delivery Guarantee Act (or equivalent)
construction and post-construction No Objection legislation to grant construction permits including all
Certificates (NOCs), registrations and other mandatory required approvals; pre-construction, during construction

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State approvals (prior to plinth and pre - occupancy) on and post construction
the web site
Recommendation 236: Recommendation 237:
Mandate that a single, joint site inspection will be Design and develop an online single window system for
carried out by all concerned authorities such as Fire, granting construction permits with following
Sewerage, Electricity, Labour (such as Factory license), functionalities:
Water Department and internal departments responsible i. A common integrated application for all
for granting construction permits in urban areas and internal and external agencies required to
IDCs provide applicable NOCs/Approvals such
as Fire Services, Water and Sewerage
Department, Discoms, AAI, NMA, Forest,
labour, Factory Directorate etc.
ii. Provision for making an online application
with integrated payment without the need
for a physical touch point for document
submission and verification
iii. The system should allow auto scrutiny of
building plans from compliance
perspective according to the uniform
building codes/building by-law using Auto
DCR (or similar) software
iv. Ensure that the system issues digitally
signed approved building plan within 30
days from the date of application
v. Provision for e-intimation to authorities of
plinth level completion
vi. Provision for online issuance of certificate
of inspections
vii. Provision for online common completion
request form cum Occupancy Certificate
Application with online payment
viii. Provision for online issuance of digitally
signed occupancy cum completion
certificate to the applicant
Recommendation 239:
Stipulate that construction permits, are provided within
45 days
Recommendation 238: I. Building Plan approval is provided within 30
Define clear timelines mandated through legislation for days
sanctioning of building permits/building plan approval II. Plinth Inspection is done within 7 days of
in 30 days intimation
III. Final completion/occupancy certificate is
provided within 8 days ( 7 days for inspection +
1day for issuing the certificate)
Recommendation 240:
Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission to application approval
(including all NOC requirements, registrations and other state approvals), is published online on
department's website. The procedure should clearly highlight the step by step movement of the application
within the department. It may be supplemented with process maps if available; in any case, the details
should be published explicitly and should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are notified, either on the portal, or through a notification and citizen charter. Building plan

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 may be sanctioned within 30days, plinth certificate be issued within 7 days and the final completion cum
occupancy certificate be provided within 8 days including inspection. The inspection may be conducted
within 7 days of intimation and the final certificate is issued on the 8 th day. This period of 45 days can be
spread across from the date of application of building plan approval till issuing of completion certificate.
The timelines should be highlighted clearly on the portal along with the notification.
 Allowing applicants/architects to upload building plans as part of their online application is but the first
step in automated construction permit approval. Technology has today evolved to the point where a lot of
the processing and review of building plans can also be processed using software. In particular, CAD
systems can be developed that automatically scan building plans and monitor compliance with the building
by-laws and building codes in force. Such automated systems greatly increase efficiency by allowing
computer verification, and simultaneously reduce the risk of human error in the review of the plans. This
requires a system that allows applicants to upload building plans – these tend to be very large files, so the
system should also include adequate storage space. Second, the municipal corporation should incorporate
the filters and restrictions into the CAD software on the server end so that they are automatically reviewed
for compliance against the building code
 The online construction permit approval portal should have the following features:
o Common Application Form for all internal and external agencies such as Fire, Forest, AAI etc.;
o The user can pay all associated fees online;
o Once submitted, the plans are scrutinized online without any manual interference
o Applications are processed and approved by each licensing agency online, and not through a
manual or hard copy process;
o Provision for e-intimation to authorities of plinth level completion
o Provision for online issuance of certificate of inspections; and
o Once approved, the user can obtain the digitally approved plans and occupancy cum completion
certificate.
 There are no physical touch-points in the application process. This means that applicants are not required to
physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Similarly, for many large buildings, a variety of government agencies are involved in inspecting and
clearing the construction, at all stages of the construction process. Integrating the multiple inspections into
a single joint inspection through an Act, notification or rule can help integrate the various inspection
requirements into a single comprehensive checklist, which allows for a single clearance for compliant
buildings, or for the development of a comprehensive corrective.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users should be able to check the authenticity of the document online, using the
certificate number or other unique reference, by visiting the portal.

38. NOC for tree felling from Tree Authority/ Appropriate Authority (prior to
commencement of construction activities)

Recommendation 241: Recommendation 242:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 243: Recommendation 244:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 245:

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Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:

 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points for the submission of documents in the application process. This
means that entrepreneurs are not required to physically present and submit all documents for verification
before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their
documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting
the portal. Current/valid issued certificates or granted approval should be made available in the public
domain for third party.

39. Tree Transit permission

Recommendation 246: Recommendation 247:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 248: Recommendation 249:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 250:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and

Page | 46
 should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points for the submission of documents in the application process. This
means that entrepreneurs are not required to physically present and submit all documents for verification
before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their
documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting
the portal. Current/valid issued certificates or granted approval should be made available in the public
domain for third party.

40. NOC for Fire Department (prior to commencement of construction activities)

Recommendation 251: Recommendation 252:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 253: Recommendation 254:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 255:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;

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 o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points for the submission of documents in the application process. This
means that entrepreneurs are not required to physically present and submit all documents for verification
before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their
documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting
the portal. Current/valid issued certificates or granted approval should be made available in the public
domain for third party.

41. Environment Registration Enablers

Recommendation 256:
Notify a list of white category industries, which are exempted from taking clearances from State pollution control
board
 For white industries, the state can do away with pollution control board clearances / mandatory
inspections and replace them with need-based inspections which are only invoked in case there are
specific complaints. The simplest approach to reducing the regulatory burden on business from
environmental procedures and licensing is to introduce different approval inspection regimes for
different categories of pollution. The inspection regime for amber and red industries should also be
differentiated, with less frequent inspections for Amber and more frequent inspections for Red industries
and firms. Implementing this differentiated inspection regime will require a clear notification that
outlines the process for each type of industry, and also mandates the frequency of inspections for Amber
and Red industries.
 This list will have to be mandated through legislation or notification, and be made available publicly.

Recommendation 257: Recommendation 258:

Allow for auto-renewal of Consent to Establish (under Allow for auto-renewal of Consent to Operate (under
Water Act, 1974 and Air Act, 1981) based on self- Water Act, 1974 and Air Act, 1981) based on self-
certification/third party certification and ensure that certification/third party certification and ensure that
majority of establishments avail this provision majority of establishments avail this provision
Recommendation 259: Recommendation 260:
Issue Consent to Operate with a validity period of 5 Issue Consent to Establish with a validity period of 5
years or above years or above
Separate processes to renew Consents to Establish and Operate annually impose costs upon both the state
government as well on entrepreneurs. For state governments, annual renewals imply repeated paperwork, inspection
and costs associated with recruiting and maintaining sufficient manpower to carry out the annual checks and
reregistration. However, in many cases, there are no changes in pollution levels or activities – therefore, the exercise
is only repeated annually, thereby imposing repeated costs on the department and the entrepreneur.
One option to remove this cost is to issue Consents to Operate and Establish for longer durations, especially in cases
pertaining to Green and Orange industries, subject to there were no changes in pollution levels or activities; in case
there has been a change in pollution levels or activities, reregistration will be mandatory. State resources can then be
geared toward randomly auditing to ensure compliance with the terms of the certificate. Additionally, the state can
mandate auto renewal of the Consent, subject to self- or third-party certification of that there were no changes in
pollution levels or activities. This will require the issuance of a notification in this regard, as well as systems to
process the submission of auto-renewal filings.

Page | 48
If the state wishes to pursue third-party certification instead of self-certification, the state must not only issue a
notification, but also lay out criteria for accreditation and empanelment of third-party service providers, as well as
clearly lay out that, in the event of misrepresentation, the liability is shared equally between the entrepreneur and the
certifying authority.

42. Consent to Establish under the Water (Prevention and Control of Pollution) Act, 1974

Recommendation 261: Recommendation 262:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 263: Recommendation 264:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 265:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points for the submission of documents in the application process. This
means that entrepreneurs are not required to physically present and submit all documents for verification
before the certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their
documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting
the portal. Current/valid issued certificates or granted approval should be made available in the public
domain for third party.

Page | 49
43. Consent to Establish under the Air (Prevention and Control of Pollution) Act, 1981

Recommendation 266: Recommendation 267:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 268: Recommendation 269:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 270:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points for the submission of documents in the application process. This means
that entrepreneurs are not required to physically present and submit all documents for verification before the
certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents
through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/valid issued certificates or granted approval should be made available in the public domain
for third party.

44. Authorization under the Hazardous and Other Wastes (Management and
Transboundary Movement) Rules, 2016

Recommendation 271: Recommendation 272:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Page | 50
Recommendation 273: Recommendation 274:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 275:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points for the submission of documents in the application process. This means
that entrepreneurs are not required to physically present and submit all documents for verification before the
certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents
through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

45. Consent to Operate under the Water (Prevention and Control of Pollution) Act, 1974

Recommendation 276: Recommendation 277:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 278: Recommendation 279:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 280:
Allow third parties to easily verify the approval certificates in the public domain

Page | 51
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points for the submission of documents in the application process. This means
that entrepreneurs are not required to physically present and submit all documents for verification before the
certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents
through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

46. Consent to Operate under the Air (Prevention and Control of Pollution) Act, 1981

Recommendation 281: Recommendation 282:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 283: Recommendation 284:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 285:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines

Page | 52
 should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points for the submission of documents in the application process. This means
that entrepreneurs are not required to physically present and submit all documents for verification before the
certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents
through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

47. Obtaining Electricity Connection

Recommendation 286: Recommendation 287:

Ensure that DisComs uses automated tools to monitor Ensure that DisComs uses automated tools for service
outages in all Industrial areas of State restoration in all Industrial areas of State
Recommendation 288: Recommendation 289:
Ensure that the regulator publishes monthly or Ensure that total outage cap is fixed by regulator for a
quarterly the data regarding total duration and quarter/year and the Discoms compensates customers
frequency of outages online in public domain for outages that go over the fixed cap
These questions are aimed at improving the quality of electricity supply available. In recent years, DisComs
around the country have been implementing Supervisory Control and Data Acquisition (SCADA) systems, which
allow them to monitor outages and restore services. Such system replaces manual processes to monitor outages
on the basis of customer complaints, reliance on field crews or maintenance personnel to restore service and has
other advantages. Firstly, this systems help improve the quality and reliability of electricity supply by tracking
problems and resolving them in a timely manner. Secondly, with the help of such SCADA-based systems,
regulators can effectively monitor reliability of supply, either on a periodic basis or real-time, and can publish
such information online. This allows businesses to understand the quality of the electricity supply available, and
to take steps necessary to plan for and mitigate outages as and when they arise. The states may choose to use
SCADA or any other automated tool in this regard. SCADA is implemented in all cities that are eligible under R-
APDRP, or if the State has implemented an alternative mechanism for monitoring outages and service restoration
in these cities.
Finally, the imposition of an outage cap also helps businesses plan for and mitigate the impact of outages, by
ensuring that they are compensated for outages beyond what they have planned for. Alternatively, if the regulator
imposes a fine for exceeding the cap, the DisComs has greater incentive to ensure its reliability and service
quality.

Recommendation 290:
Ensure that information on effective tariffs are available online, and that customers are notified of a change in
tariff ahead of the billing cycle
Beyond a reliable electricity supply, transparency around tariffs is also important for customers, to enable them to
forecast the cost of their energy consumption and deal effectively with future price increases. Publishing this
information and notifying users of changes in tariffs ahead of time allow regulators to ensure that tariff
information is transparent.

Page | 53
Recommendation 291: Recommendation 292:
Reduce the number of documents required for obtaining Allow third party inspection of internal installations and
the electricity connection to only two i.e. proof of ensure that majority of establishments avail this
ownership/occupancy and authorization document (in provision
case of firm/company)
Recommendation 293: Recommendation 294:
Ensure that users are provided a fixed cost estimate Implement a system that allows online application
based on the load (KVA/KW) required for obtaining submission, payment and tracking of status without the
electricity connection in all industrial areas of State and need for a physical touch point for document submission
ensure these charges (demand note) is generated for new electricity connection and mandate that
through the online system all applications are submitted online
Recommendation 295:
Stipulate that charged electrical connections (up to 150 KVA) is provided within Seven days (where no ‘Right of
Way’ (RoW) is required) and in Fifteen days where RoW is required from concerned agencies
The questions above are based on reforms that have significant benefits for entrepreneurs:
 An online application form, perhaps combined with the single window system, can make applications for
connections easier and, by enabling tracking of applications online, can also introduce transparency into the
process. If connections are provided by private distribution companies, energy regulators can also use the
system to obtain data and track performance in terms of the time it takes to obtain an electricity connection.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and not
through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required to
physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 In many cases, road cutting (RoW) may be required to provide electric connections; often, this permission is
given by a separate department, and involves a separate application by the utility and a separate payment by the
consumer. It is recommended that a fixed cost per load unit be stipulated by the government, which includes all
costs associated with providing the average electricity connection. The distribution company can then use this
payment to pay for any restoration charges or any other costs that may be incurred, and the consumer only has
to apply once and pay once.
 A large number of documents are generally required to obtain an electricity connection to prove that the
applicant is authorized to apply for the electricity connection. This can be streamlined significantly by requiring
only 2 documents: proof of ownership/ occupancy and proof of authorization to apply in the case of a firm/
company.
 A mandatory time limit for electricity connections is helpful if notified by state governments as it helps reduce
uncertainty of entrepreneurs regarding the time required to obtain the connection, thus enabling them to plan
effectively.
 In many cases, electricity connections require detailed inspections by the distribution companies or by the
Government prior to connections. However, this inspection can be outsourced to third party agencies who have
the skills to inspect internal wiring and can complete this during the building planning and construction stage
itself. To enable this, the state must not only issue a notification, but also lay out criteria for accreditation and
empanelment of third-party service providers, as well as clearly lay out that, in the event of an accident, the
liability falls equally upon the entrepreneur and the certifying authority.

Recommendation 296: Recommendation 297:

Design and develop an online system for granting road Define clear timelines mandated through the Public
cutting permissions in a manner that it allows online Service Delivery Guarantee Act (or equivalent)

Page | 54
application submission, payment, document legislation for approval of complete application for
submission and approvals. granting ‘Right of Way’ (RoW) permission
Recommendation 298:
Allow third parties to easily verify the authenticity of electricity connections and respective
premise/entity/individual through online system in the public domain
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.

48. Certification of Electrical Installation by Chief Electrical Inspector

Recommendation 299: Recommendation 300:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

Recommendation 301: Recommendation 302:

Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 303:
Allow third parties to easily verify the approval certificates in the public domain

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;

Page | 55
 o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points for the submission of documents in the application process. This means
that entrepreneurs are not required to physically present and submit all documents for verification before the
certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents
through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

49. Obtaining Water Connection

Recommendation 304: Recommendation 305:

Publish information about the procedure and a Define clear timelines mandated through legislation for
comprehensive list of documents required by all obtaining water connection by all concerned agencies
relevant agencies for providing water connection in
urban and industrial areas of State on the Department’s
web site
Recommendation 306:
Design and implement an integrated system that allows online application submission, payment, tracking and
monitoring without the need for a physical touch point for document submission and verification from all
concerned agencies and mandate that all applications are submitted online
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission to application approval, is
published online on department's website. The procedure should clearly highlight the step by step movement
of the application within the department. It may be supplemented with process maps if available; in any case,
the details should be published explicitly and should not refer to Acts or rules
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points for the submission of documents in the application process. This means
that entrepreneurs are not required to physically present and submit all documents for verification before the
certificate is issued. Instead, entrepreneurs can use digital signature certificates to submit their documents
through the online system.

Page | 56
50. Tax Enablers

Recommendation 307: Recommendation 308:

Ensure that users are provided assistance for e-filing at Establish a helpline providing basic services and
service centers assisting users in preparing and filing returns
E-filing service centers can be an effective mechanism to assist tax payers to make the transition from manual filing
and payment. These centers can assist taxpayers to file and pay taxes online, thereby allowing greater use of the
online system. Wide availability of such centers can also increase adoption of online filing and payment
mechanisms. Similarly, a helpline number can also provide real-time information and support to users.

Recommendation 309:
Mandate that the VAT refund payment should directly be paid into organization's account within 60 days
VAT refunds are a source of capital that entrepreneurs can use to expand their business or to carry out transactions –
therefore, delays in the refund reaching the entrepreneur can slow down the pace of business. For this question, we
examine whether notifications or legislation exist that mandate this repayment into the entrepreneur’s account, as
well as whether the refund is made directly to the user’s bank account, instead of through a voucher or check.

Recommendation 310:
Implement a system for risk based audit related to tax compliance
A tax database that captures data effectively on tax payments and compliance can be used by the tax authority to
identify the most high-risk tax payers. This allows tax audits and inspections to be targeted at cases that pose risk,
instead of being conducted uniformly across all businesses, many of which may be of a very small scale or may
partake in small transactions only. This also increases the efficiency of the tax audit process, by reducing the
workload on officials who undertake these audits. The criteria that define the risk parameters should be clearly
defined in a government notification or circular, and can also be built into advanced tax registration, filing and
payment systems

Recommendation 311:
Introduce a system for advance tax ruling for State level taxes on the lines of Income Tax Act
Advance tax provisions allow businesses to pay taxes upfront, and thereby reduce their cost of compliance. Such
provisions should be built in to the state’s VAT and other tax laws, so that they can be enforced.

Recommendation 312: Recommendation 313:

Publish forms relating to information captured at check Phased out static check posts and implement random
posts been made available online checking by mobile squads
Recommendation 314: Recommendation 315:
Ensure that the provision for uploading way bill/forms Provide green channel facility i.e. no checking of
is available on the department’s website documents at the check post if the requisite information
is provided in advance except checking of weight if
required
These questions relates to a transparent, risk-based approach to ensure tax compliance for goods moving through
a state. In line with the other risk-based inspections discussed throughout this document, risk based mobile check
posts can be more efficient than static check posts that seek to examine every single truck, by allowing officials to
focus on those that pose the highest risk. A first step in this regard is to allow entrepreneurs to generate and
upload waybills, transit forms and other check post related forms through an online interface. This online system
can then be enhanced with filters that allow random sampling or other risk based criteria, which is then sent to the
mobile squads who can then inspect the specific outliers. The ones with the lowest risk may be allowed to

Page | 57
transport without checking of documents at the check post if the requisite information is provided in advance
except checking of weight if required. This can reduce the time taken for domestic transshipment of goods and
therefore spur greater domestic and international trade.

51. Registration for Value Added Tax (VAT)

Recommendation 316: Recommendation 317:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application
Recommendation 318: Recommendation 319:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 320: Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

52. Registration for Central Sales Tax (CST)

Recommendation 321: Recommendation 322:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application

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Recommendation 323: Recommendation 324:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 325: Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

53. Registration for Profession Tax

Recommendation 326: Recommendation 327:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application
Recommendation 328: Recommendation 329:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 330: Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts

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 or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

54. Registration for Entry Tax

Recommendation 331: Recommendation 332:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application
Recommendation 333: Recommendation 334:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 335: Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.

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 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

55. Registration for Entertainment Tax

Recommendation 336: Recommendation 337:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application
Recommendation 338: Recommendation 339:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 340: Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

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56. Registration for Luxury Tax

Recommendation 341: Recommendation 342:

Publish information about the procedure and a Define clear timelines mandated through the Public
comprehensive list of documents required on the Service Delivery Guarantee Act (or equivalent)
Department’s web site legislation for approval of complete application
Recommendation 343: Recommendation 344:
Design and implement a system that allows online Ensure that the system allows user to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 345: Allow third parties to easily verify the approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

57. Online filing of returns

Recommendation 346: Recommendation 347:

Design and implement a system for online filing of Design and implement a system for online filing of
Value Added Tax (VAT) Central Sales Tax (CST)
Recommendation 348: Recommendation 349:
Design and implement a system for online filing of Design and implement a system for online filing of
Profession Tax Luxury Tax
Recommendation 350: Recommendation 351:
Design and implement a system for online filing of Design and implement a system for online filing of
Entry Tax Entertainment Tax to be filed online
Similarly, in the case of filing taxes, online returns filing mechanisms are also useful in easily and quickly capturing

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relevant data effectively from the users. This allows better quality control on the database itself, by ensuring that it is
error-free, and by thereby allowing state tax authorities to compile comprehensive tax payment histories and develop
risk profiles for each tax payer. The online filing mechanism can also be effectively combined into single software,
and made available through the single window.

58. Online tax payment

Recommendation 352: Recommendation 353:

Design and implement a system for online payment of Design and implement a system for online payment of
Value Added Tax (VAT) Central Sales Tax (CST)
Recommendation 354: Recommendation 355:
Design and implement a system for online payment of Design and implement a system for online payment of
Profession Tax Luxury Tax
Recommendation 356: Recommendation 357:
Design and implement a system for online payment of Design and implement a system for online payment of
Entry Tax Entertainment Tax
Once returns are filed online, a payment gateway can be deployed to allow taxes to also be paid online. This reduces
the burden on the entrepreneurs to manually visit banks to pay taxes, and enables more accurate tax payments if they
are based on the filings, as opposed to manual payments which may be subject to errors.

59. Access to Information and Transparency Enablers

Recommendation 358: Recommendation 359:

Develop and make publicly available a comprehensive Develop and make publicly available a comprehensive
checklist, applicable procedure and timeline of all checklist, applicable procedure and timeline of all
required pre-establishment No Objection Certificates required pre-operation No Objection Certificates
(NOCs), licenses, registrations and other mandatory (NOCs), licenses, registrations and other mandatory
State approvals required for setting up of a business State approvals required for starting business operations
Recommendation 360: Recommendation 361:
Develop an online information wizard (one Develop an online information wizard (one
portal/functionality covering all categories/types of portal/functionality covering all categories/types of
industries/businesses) to provide accurate information industries/businesses) to provide accurate information
regarding all approvals (No Objection Certificates regarding all approvals (No Objection Certificates
(NOCs), licenses, registrations and other mandatory (NOCs), licenses, registrations and other mandatory
approvals, timelines, procedure) applicable to establish a approvals, timelines, procedure) applicable to establish a
business/industrial unit (pre-establishment) business/industrial unit (pre operation)

Investors and businesses often suffer from uncertainty about the exact regulatory requirements required to set up and
start their operations. In addition to central registration and licensing, states often have a variety of “economy-wide”
regulatory compliances; further, businesses in some industries may also require a number of sector- or industry-
specific licenses. In order to ensure that all this information is readily available to an entrepreneur intending to set up
a business, it is intended that:
 A comprehensive list of all required licenses, registrations and NOCs, both economy-wide and industry-
specific is compiled, covering at least the areas covered in the State Business Reform Action Plan 2016,
along with all industry-specific clearances;
 Good practice from several states indicates that the licenses, registrations and NOCs can be sub-divided
into two distinct categories: pre-establishment and pre-operation. Segregating license and registration
information into these two categories can also assist in offering single window services for licenses at these
two stages of a business’s establishment.
 The checklist is verified and validated effectively to ensure that no other state approval is required by
consulting all licensing agencies as well as private sector associations and chambers;
 The checklist is made available to users on a state government website;

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  In addition, an entrepreneur using the website for the purpose of understanding his or her regulatory burden
should be able to filter the list by a set number of criteria, including the stage of the businesses life cycle,
type of industry, location, number of employees, etc. to understand the unique mix of economy-wide and
industry-specific licenses and registrations.
Such efforts can help ensure effective access to information for entrepreneurs, as well as provide regulatory certainty
to ensure that they are aware of their exact compliance requirements. In addition, this information is critical to
helping develop and implement a comprehensive single-window system and Common Application Forms (CAF).

Recommendation 362: Recommendation 363:

Establish a formal investors’ facilitation center/bureau in Define working procedures for the investors’ facilitation
State for investment promotion, industrial facilitation, center/bureau such as for queries regarding the
regulatory reforms and obtaining user feedback application and approval process, query recording and
ticketing, service timelines for query handling, aligning
relationship managers and reverting back to investors
Investment promotion and facilitation can assist in attracting new investments in the state and retain existing ones.
Developing a formal process of improving the business climate requires a dedicated institution with responsibility
for investment promotion & facilitation, simplification of regulatory procedures and direct engagement with the
industry for information gathering, stakeholder consultations etc.
The investor facilitation center/bureau’s ability to resolve problems is related to its legal status, mandate and
location within government. Such an agency may be established a legislation or a legal mandate.
The investor facilitation center/bureau must clearly publish online clear procedures and timelines regarding the
following
 Application approval process
 Query recording and handling
 Grievance handling

Recommendation 364:
Implement a system whereby business entities are issued a single ID for all State taxes (VAT and CST, and PT,
Entertainment Tax, Entry Tax and Luxury Tax where applicable)
Entrepreneurs are subject to various registrations for tax purposes at a state level, including VAT, CST, Entry tax,
Entertainment tax, Luxury tax and Professional tax. A separate registration number for each makes it difficult on
the part of the entrepreneur to remember and file; similarly, separate registration numbers make it difficult for tax
authorities to develop risk profiles as they often do not have access to the full tax compliance history of a
business. A single ID from the user perspective makes it easier to file taxes and also enables greater integration of
tax payment and filing systems, thus reducing the cost on government to maintain multiple systems and
databases.

Recommendation 365: Recommendation 366:

Mandate that the final VAT registration certification will Mandate that the final professional tax registration
be issued within at most one (1) working day from the certification (where applicable) will be issued within at
date of submission of application form most one (1) working day from the date of submission of
application form
The provision of VAT and professional tax registration certificates are often a prerequisite for businesses to open
bank accounts and therefore truly begin operations. Therefore, delays in issuing these certificates may lead to delays
in the business’s establishment and operations, thereby reducing the ability of the business to get bank loans, employ
workers and generate incomes. Providing these certificates in a timely manner may help reduce this burden
significantly. However, should the state choose to do so, it is necessary to put in place this commitment through a
written notification mandating registration certificate to be issued in 1 day from date of application, and to ensure
that any online systems for these registrations are equipped to allow this to happen in a timely manner.

Recommendation 367: Recommendation 368:

Enact a legislation (e.g. Right to Services Act) to Ensure that the time-bound service delivery legislation

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mandate time-bound delivery of all services provided by defines punitive provisions that deter officials from not
the State Government to Industries/ Businesses complying with the defined timelines for services being
provided to Industry/ Business
Recommendation 371:
Ensure that the time-bound service delivery legislation defines clear procedures for applicants to submit grievances
relating to noncompliance with the defined timelines
In order to make the delivery of services truly effective, the timelines for delivery by various agencies must be
enforceable. This means that the state must have legislation that:
 Mandates time-bound delivery of services to business, in line with the timelines published above; and
 Lays out punitive measures against officials who do not abide with these timelines.
For the purposes of this assessment, we recommend that the legislation cover time-bound service delivery for at
least any four of the following registration or licensing processes: Labor, Environment, Land Allotment,
Construction Permits, Power/electricity connections and State taxes.
The single window legislation should also indicate clear timelines that govern its processes for dealing with
grievances related to the registration process. Such timelines provide additional certainty to entrepreneurs who wish
to register their businesses. However, to be truly effective, these timelines should relate to fully resolving the
grievances themselves – not just routing the grievance to other agencies or departments.

Recommendation 369: Recommendation 370:

Develop an online system available in public to publish Ensure that online system sends automated SMS/e-mail
real time status of applications submitted to the notification to respective Head of the Department with
departments concerned for obtaining clearances status information on the applications in which
clearances are likely to breach the prescribed timelines
(e.g. when 90% of prescribed time limit is passed and
clearance is still not given to applicant)
The above online system should be enabled for the services beyond the ones covered under Single Window. Such
online portals should clearly make public the real time status of the applications submitted to the departments
concerned for obtaining clearances. The online system should also send automated SMS/ emails to the respective
department heads in case there is a breach of prescribed timelines (e.g. when 90% of prescribed time limit is
passed and clearance is still not given to applicant)

Recommendation 372: Recommendation 373:

Mandate and make arrangements to publish draft Mandate and make arrangements to publish the
business regulation online and invite public comments/ comments/feedback received online on the draft
feedback on the same prior to enactment business regulation and how they are addressed in the
final regulation

Global best practice around promoting regulatory certainty for business includes allowing stakeholders the
opportunity to review and provide feedback on draft regulations before they are enacted. Regulations that are
compiled with stakeholder input tend to feature higher compliance and impose a lower burden in terms of
enforcement as well as compliance. Allowing stakeholder inputs in business regulations is therefore a critical
prerequisite for good private sector governance.
Many states have already introduced provisions for posting draft regulations online for public comment prior to
enactment. In addition to these efforts, we recommend introducing a mechanism to provide transparency on the
comments that have been received, as well as how they were addressed in the final draft of the regulation that is
ultimately enacted.

60. Retail Drug License (Pharmacy) and renewal thereof

Recommendation 374: Recommendation 375:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)

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web site legislation for approval of complete Application

Recommendation 376: Recommendation 377:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not
required to physically present and submit all documents for verification before the certificate is issued.
Instead, entrepreneurs can use digital signature certificates to submit their documents through the online
system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.

61. Wholesale drug license

Recommendation 378: Recommendation 379:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 380: Recommendation 381:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline,
inspection etc.) to application approval, is published online on department's website. The procedure
should clearly highlight the step by step movement of the application within the department. It may be
supplemented with process maps if available; in any case, the details should be published explicitly and
should not refer to Acts or rules.

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  A comprehensive list of the documents that need to be submitted as part of the application is included on
the website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online,
and not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the
portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not
required to physically present and submit all documents for verification before the certificate is issued.
Instead, entrepreneurs can use digital signature certificates to submit their documents through the online
system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and
scanned – should be made available for download from the website by the user.

62. Granting and renewal of Drug Manufacturing License

Recommendation 382: Recommendation 383:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 384: Recommendation 385:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –

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 should be made available for download from the website by the user.

63. Registrations and renewals under the Legal Metrology Act, 2009

Recommendation 386: Recommendation 387:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 388: Recommendation 389:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 390:
Allow third parties to easily verify the approval certificates in the public domain
The Legal Metrology Act, 2009 replace the Standards of Weights and Measures Act, 1976 and the Standards of
Weights and Measures (Enforcement) Act, 1985. This law establishes uniform standards of weights and measures
to regulate trade in weights, and other goods which are sold or distributed by weight, measure or number. Under
this recommendation, registration is required for manufacturer, importer, dealer and repairer of any weight or
measure.

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

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64. Registration of partnership firms

Recommendation 391: Recommendation 392:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 393: Recommendation 394:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point
for document submission and verification and mandate
that all applications are submitted online
Recommendation 395: Allow third parties to easily verify approval certificates in the public domain
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts or
rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines should
be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and not
through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required to
physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain for
third party.

65. Registration of Societies

Recommendation 396: Recommendation 397:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 398: Recommendation 399:

Design and implement a system that allows online Ensure that the system allows users to download the
application submission, payment, tracking and final signed approval certificate from the online portal.
monitoring without the need for a physical touch point

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for document submission and verification and mandate
that all applications are submitted online
Recommendation 400: Allow third parties to easily verify approval certificates in the public domain
Registration of Societies will cover both the Societies Registration Act, 1806 and Cooperative Societies Act, 1912.

The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly
highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts or
rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines should
be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and not
through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required to
physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain for
third party.

66. Trade Licence

Recommendation 401: Recommendation 402:

Publish information about the procedure and Define clear timelines mandated through the Public
comprehensive list of documents on the Department’s Service Delivery Guarantee Act (or equivalent)
web site legislation for approval of complete Application

Recommendation 403: Recommendation 404:

Design and implement a system that allows online Reduce the number of documents required for
application submission, payment, tracking and obtaining trade license to only two: ID Proof and Lease
monitoring without the need for a physical touch point Deed/Legal Occupancy document
for document submission and verification and mandate
that all applications are submitted online
Recommendation 405: Recommendation 406:
Ensure that the system allows user to download the Allow third parties to easily verify the approval
final signed approval certificate from the online portal. certificates in the public domain
The Trade License as per the recommendation covers all trade licences under the Municipal Acts of the
respective municipal corporation and other local bodies of the states as relevant.
The ideal system covered by these questions includes the following criteria:
 The detailed procedure covering all applicable steps, from application submission (online/offline, inspection
etc.) to application approval, is published online on department's website. The procedure should clearly

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 highlight the step by step movement of the application within the department. It may be supplemented with
process maps if available; in any case, the details should be published explicitly and should not refer to Acts
or rules.
 A comprehensive list of the documents that need to be submitted as part of the application is included on the
website.
 Reduce the number of documents required for obtaining trade license to only two: ID Proof and Lease
Deed/Legal Occupancy document. The ID proof for an individual may be the Aadhar number and for
business it may be PAN or Incorporation certificate
 Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines
should be highlighted clearly on the portal along with the supporting document.
 The application to be made mandatorily online, through a portal with the following features:
o Entrepreneurs should be able to fill out and submit the application form online;
o The user can pay all associated fees online;
o Once submitted, the applications are processed and approved by each licensing agency online, and
not through a manual or hard copy process;
o The user can track the status of his applications online using the portal; and
o Once approved, the user can obtain the approval or registration certificate online through the portal.
 There are no physical touch-points in the application process. This means that entrepreneurs are not required
to physically present and submit all documents for verification before the certificate is issued. Instead,
entrepreneurs can use digital signature certificates to submit their documents through the online system.
 Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user.
 Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the document online, using the certificate number or other unique reference, by visiting the
portal. Current/Valid issued certificates or granted approval should be made available in the public domain
for third party.

67. Levies imposed by State and Local Bodies including those at Panchayat level [other
than subsumed under Goods and Services tax (GST)]

Recommendation 407: Recommendation 408:

Publish a list of all state, municipal and panchayat Develop online system for payment of tax, duty, fee or
levies and include the relevant information pertaining any other levy as imposed by the State and local bodies
to the rates and tariff levied by the State and local
bodies on the online portal
Recommendation 409: Recommendation 410:
Publish information about the procedure and list of Design and implement a system for registration/re-
documents required for registration/re-registration registration that allows online application submission,
under the relevant local law on the online portal payment of fee, tracking and monitoring without the
need for a physical touch point for document
submission and verification and mandate that all
applications are submitted online
Recommendation 411: Recommendation 412:
Define clear timelines mandated through the Public Design and implement a system for online filing of
Service Delivery Guarantee Act (or equivalent returns under the relevant local laws for all taxes,
legislation) for registration duties, fees and any other levy
Recommendation 413: Recommendation 414:
Ensure that the system allows user to download the Allow third parties to easily verify the validity of
final signed registration/re-registration certificate from registration/re-registration certificate in the public
the online portal domain

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The intent of this online portal is to list all the taxes, duties, cesses or fee which are outside the purview of GST
as imposed by the State governments and municipal, local bodies (including those at the panchayat – district and
village level). This would ensure that consumers are aware of such levies and are able to pay the same online.
For example, advertisement tax, land conversion charges, show tax, etc. which may be applicable at the
municipal/ panchayat level in different States/ UTs. It is suggested that Finance department of each State/ UT
should make such information available comprehensively for all districts and taluks.

The ideal system covered by these questions includes the following criteria:

The detailed procedure covering all applicable steps, from application submission to application approval, is
published online on department's website. The details should be published explicitly and should not refer to Acts
or rules.
A comprehensive list of the documents that need to be submitted as part of the application should be displayed.
Clear timelines are mandated through a Public Service Guarantee Act (or equivalent Act). The timelines should
be highlighted clearly on the portal along with the supporting document.

The application to be made mandatorily online, through a portal with the following features:
- Users/ Entrepreneurs should be able to fill out and submit the application form online;
- The user can pay all associated fees online;
- Once submitted, the applications are processed and approved by each licensing agency online, and not through a
manual or hard copy process;
- The user can track the status of his applications online using the portal; and
- Once approved, the user can obtain the approval or registration certificate online through the portal.

There are no physical touch-points in the application process. This means that entrepreneurs are not required to
physically present and submit all documents for verification before the certificate is issued. Instead, entrepreneurs
can use digital signature certificates to submit their documents through the online system.

Once approval is obtained, the signed certificate – either digitally signed or signed manually and scanned –
should be made available for download from the website by the user. Third parties/other users such as Other
Government Agencies, Banks, etc. should be able to check the authenticity of the document online, using the
certificate number or other unique reference, by visiting the portal. Current/valid issued certificates or granted
approval should be made available in the public domain for third party.

68. Property tax

Recommendation 415:
Design an online system which will have the facility to auto-populate and calculate the levy area-wise and enable
online payment of property tax
States/ UTs to design and implement a system with the following features:

− Applicants should be able to login into the system through unique property ID;
− System should have an auto calculator that calculates fee and other charges based on the area of the
property, value of the property, circle rate, etc.
− Once the system populates the amount of tax the user can pay all the associated fees online
− Keep records of past taxes paid on the portal for each user

As a recommendation, States/ UTs may refer to the online system for the Property taxes made by Government
of NCT of Delhi. (http://delhi.gov.in/wps/wcm/connect/doit/Delhi+Govt/Taxes/Property+Tax)

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69. Utility and Water charges

Recommendation 416: Recommendation 417:

Publish tariff rates on the portal of discoms for all Design an online system for e-payment of bills on the
types of users portal of the discoms
Recommendation 418: Recommendation 419:
Develop an online system for e-payment of bills Allow third party to view and verify the records of past
payments by entering connection number
States/ UTs to incorporate a payment gateway can be deployed to allow for online payment of charge/ cess.
This reduces the burden on the users/ entrepreneurs to manually visit banks to pay taxes, and enables more
accurate payments as opposed to manual payments which may be subject to errors.

Third parties/other users such as Other Government Agencies, Banks, etc. should be able to check the
authenticity of the payments made online, by using the connection number or other unique reference. This will
also help to know the encumbrances related to any property.

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