MUMBAI(PTI): A new law on bankruptcy aimed at improving the ease of doing business will…
NEW DELHI(PTI): A Parliamentary panel has suggested several steps such as urgent requirement to reduce procedures and time period for registration of a company in order to improve India’s ranking in ease of doing business.
It has recommended measures an all the 10 parameters, whose performances was evaluated by the World Bank to prepare the ease of doing business report. The parameters include starting a business, dealing with construction permits, paying taxes, and getting credit.
It has said that Aadhaar, PAN and passport may be linked to eliminate the basic need of verification.
The committee has observed that the issue of construction permits is a grey area in the ‘Ease of Doing Business’ scenario and there is an urgent need for introduction of fast track building plan approval systems.
“…the committee is distressed to note that the long time taken for getting an electricity connection in metropolitan cities like Mumbai and Delhi,” it said.
On the parameter of registering property, it suggested to upload standardised formats of documents like sale deed on website of all state governments.
On paying taxes, India ranked 157th in 2015 out of 189 countries.
It said there are far better ways to resolve tax issues instead of resorting to coercive methods to recover taxes.
It also recommended for preparation and implementation of a national single online application for getting all necessary certificates and no-objection certificates.
“The committee strongly recommends for a zero human interface system for imports/exports,” it said.
On improving India’s ranking in the parameter of getting credit, it suggested that the RBI should give new licences to more asset reconstruction companies, particularly foreign entities that want to bring in more capital into the business.
On enforcing contracts, it said, “the committee is concerned to note that the quality of judicial process in India has led to India’s low ranking as far as enforcing contracts is concerned”.
It recommended promotion of alternative dispute resolution mechanism and fast track courts for quick dispute resolution.
Further it has recommended that the issue of environmental clearances needs to be aligned in a manner that the ministry is in position to say ‘yes’ or ‘no’ within a specific timeline and let the investor take a decision as to whether to invest or not.
India ranked 130 out of 189 countries in the World Bank’s report on ease of doing business.
The report of the department related parliamentary standing committee on commerce on ease of doing business was tabled in Parliament.