The Tamil Nadu Business Facilitation Ordinance promulgated by the State a week ago has introduced the concept of “deemed” approval to industrial projects if authorities failed to provides clearances within specified time-frames. The ordinance seeks to facilitate single-window clearances for business houses.
Before setting up a project, a prospective investor has to secure clearances from 11 departments, and the law stipulated the time limits for each clearance. The Ordinance has stated that “the government shall prescribe the clearances”.
Stating this in Section 12, the law said “the enterprise may proceed to execute the work or take other action following the deemed approval, without contravening any of the provisions of the Acts, rules, bye-laws, notifications, standing orders, executive instructions, guidelines and the regulations made by the Competent Authority concerned for such clearances and as per the self-certification furnished by the enterprise,” which have been covered under Section 10.
As two types of committees — one for micro, small and medium enterprises (MSME) and another for large — have been specified in the law, the respective committees would inform the prospective investor the date on which the application was received by the competent authority and the date on which it was deemed to have been approved.
As for the MSME enterprises, there would be Single Window Committees at the district-level, besides a State Single Window Committee and an Investment Promotion & Monitoring Board. In respect of the large industries, there would be a State Single Window Committee; a Single Window Monitoring Committee and an Investment Promotion & Monitoring Board.
The district-level committees for MSMEs would be headed by Collectors with representatives of the department of Industries and Commerce and other departments in addition to not more than two persons from trade associations, chambers of commerce and technical experts as members. The State Single Window Committee would have Industries Commissioner and Director of Industries and Commerce as the Chairman with officials from those departments which are required to provide clearances. The Minister for Rural Industries would head the Investment Promotion and Monitoring Board with Industries Commissioner and Director of Industries and Commerce as the Member Convener.
In respect of the large enterprises, the Executive Vice-Chairperson of the Tamil Nadu Industrial Guidance and Export Promotion Bureau would chair the State Single Window Committee with officials from the departments concerned. The Chief Secretary would head the Single Window Monitoring Committee with the Secretary of the Industries Department as the Member Convener and Secretaries of departments concerned as members. The Investment Promotion & Monitoring Board would be headed by the Chief Minister with the Secretary of the Industries Department as the Member Convener and representatives of other departments.