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Ordinance passed to ease clearance for industries

Addressing the long-standing demand of industry, the State government on Thursday launched a single-window portal, through which prospective investors can apply for various clearances from 11 departments.

Quietly, on Saturday last (October 28), the government also promulgated the Business Facilitation Ordinance and notified the rules for the fresh law. Only on Thursday (November 2), it made public the text of the Ordinance and the Rules. At an event at the Secretariat, Chief Minister Edappadi K. Palaniswami inaugurated the portalhttps://www.easybusiness.


The portal can be used for submission of applications and payment of fees, besides downloading the eventual clearances. Through email and short messaging service, the status of applications will be conveyed to applicants.

Also, investors can use the portal for renewal of clearances and for availing 37 types of services from different departments of the government.

Nodal agency

Senior officials in the Industries Department clarified that the Tamil Nadu Industrial Guidance and Export Promotion Bureau will be the nodal agency at the State level in respect of large industries, whose proposed investment in plant and machinery exceeds Rs. 10 crore. In the case of small and medium industrial units whose investment will be up to Rs. 10 crore, the Office of the Regional Joint Director of Industries and Commerce will be the nodal agency for Chennai district and the district-level District Industries Centres for other districts.

Another official said that the State government has followed the Central government’s norms on the definitions of small, medium and large industries. As per the Centre’s Micro, Small & Medium Enterprises Development (MSMED) Act, 2006, small enterprises have been defined as those having investment up to Rs. 5 crore and medium enterprises as ones having investment exceeding Rs. 5 crore and up to Rs. 10 crore.

Another official says that even the services sector can make use of the Ordinance.

Need for ordinance

The promulgation of the law follows the recommendation of the Department of Industrial Policy and Promotion in the Union Ministry of Commerce and Industry in the Business Reform Action Plan on the enactment of a legislation on the timelines for getting various clearances. Besides, for ranking the States for the year 2017, all the States should comply with the recommendation before October 31, 2017. This was why the State government came out with the Ordinance and the Rules three days before the deadline.


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