Punjab govt approves 'Right to Business Act' 2020 to ease regulatory burdens on MSMEs

To facilitate business for Micro Small and Medium Enterprises (MSMEs), the Punjab Cabinet led by Chief Minister Captain Amarinder Singh on Tuesday gave the go-ahead for bringing Punjab's 'Right to Business Act 2020' in the forthcoming 2-day special session of the Assembly.

The Act is aimed at easing the regulatory burden on newly incorporated MSMEs by providing enabling provision of self-declaration, besides exemption from certain approvals and inspections for establishment and operations of MSME in Punjab.  

With this Act, the MSME in the State will get a big relief from the tedious process of getting Regulatory Approvals before setting up the units.

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The Act involves the following regulatory services:

• Sanction of building plans
• Issuance of completion/occupation certificate for buildings
• Registration of new trade license under the Punjab Municipal Act, 1911 and the Punjab Municipal Corporation Act 1976
• Sanction of building plans
• Issuance of completion/occupation certificate
• Change of land use under the Punjab Regional and Town Planning and Development Act 1995
• Application for fire ‘No Objection Certificate’ under the Punjab Fire Prevention and Fire Safety Act 2004 
• Approval of factory building plan (except for industries involving hazardous processes as per the first schedule of factories Act, 1948) under the Punjab Factory Rules, 1952 
• Registration of shop establishment under Punjab Shops and Commercial Establishment Act, 1958.

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DBE in each district

The Act provides for a District Bureau of Enterprise (DBE) in each district headed by the Deputy Commissioner as Chief Executive Officer, while General Manager of the District Industries Centre (DIC) would act as the Additional Chief Executive Officer, with other members to be notified by the Government from time to time.

The DBE shall be designated as District Level Nodal Agency, which would work under the overall superintendence, direction, and control of the State Government and the State Nodal Agency.

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Role of DBE

The District Level Nodal Agency will assist and facilitate MSME enterprises in the state, maintain a record of the ‘Declaration of Intent’ received and issue ‘certificate of In-Principle Approval’ under the Act. The nodal agency, on receipt of the Declaration of Intent, shall issue a ‘Certificate of In-Principle Approval’ to new enterprises being set up in Approved Industrial Parks within three working days.

For new enterprises being set up outside the approved Industrial Park, the decision on issuance of ‘Certificate of In-Principle Approval’ shall be taken by the District Level Nodal Agency within a period of 15 working days, as per the recommendations of Scrutiny Committee.

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After the approval of the Nodal Agency, a new MSME unit will be able to start its project immediately and shall have the option to apply for Regulatory Approvals within three and half years from the issuance of ‘Certificate of In-Principle Approval’. 

It is noteworthy that Punjab’s Industry is dominated by MSME and has a rich industrial base of MSME units manufacturing auto components, bicycle parts, hosiery, sports goods, agricultural implements, and several other sectors. The State Government under Chief Minister Captain Amarinder Singh accords the highest priority to enhance the ease of doing business in the state for accelerated growth and progress.

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