PANAJI: Goa’s poor performance in the reforms necessary for ease of doing business has led to the state slipping down from 19th to 21st position among states.
According to Department of Industrial Policy and Promotion which released the ‘Assessment of State Implementation of Business Reforms’ report on Monday, state’s record is pathetic.
Single window clearance, availability of land, construction permit, environment registrations and access to information are the main reforms taken up by the state for achieving ease of doing business.
However, even these reforms have been initiated poorly as over 80 per cent of the essentials they involve are left unfulfilled, reveals the report. For instance renewals under ‘Shops and Establishment Act’ or Factories licence is obligatory under single window which the present system does not provide.
Altogether 340 reforms have been recommended by the Centre for ease of doing business. Of this the state took up only 61 while bulk of them was left unaddressed. A total of 275 reforms have not been complied with while four are totally ignored. Reforms that have been overlooked include a separate bench in the High Court to hear commercial cases and commercial tax disputes.
Comprehensive check-list on NOCs, licences, registrations, approvals, etc, required to start a business, a centralised helpline to take queries on the application and approval process, are some of the reforms that are not implemented along with those relating to obtaining electricity connections, labour registrations, online filing of tax returns.
In 2015, Goa’s standing in ease of doing business was 19th place while in the 2016 ranking; it is down by two places to 21st position.
The report says that several states have risen to address the challenge of making it easier to do business. The national implementation average is 48.9 per cent which is higher than 2015 national average of 32 per cent. However, Goa is among the states which have taken a step backwards in business ease.
A detailed report of the ‘Assessment of State Implementation of Business Reforms’ will be published in November 2016.
Meanwhile, the DIPP website provides data on the ranking methodology. To be classified as an investor friendly a state needs to put in place digitised land records in the sub-registrar, define clear timeline for approval of the application process, implement a system that allows online application and payment without the need for physical touch point for document submission and verification.
Goa has been identified as a state that requires a jumpstart in the reform process. The report also highlights the need by state governments to properly communicate, monitor and evaluate the reforms to ensure that their impact is being felt on the ground.