Under the leadership of Chief Minister Vishnu Dev Sai, Chhattisgarh has taken a historic step towards promoting industry and business. Chhattisgarh Assembly today passed ‘Chhattisgarh Ease of Doing Business Act, 2026’. With this, Chhattisgarh is going to become the first state in the country, where risk based and trust based business permission system will be implemented for industries and business establishments.
This purpose of the act The objective is to simplify the processes related to establishment and operation of industries and businesses, reduce unnecessary compliances and create a more transparent, faster and enterprise-friendly business environment, especially for Micro, Small and Medium Enterprises (MSMEs).
Classification of Industries and Business Establishments
Under the Act, industries and business establishments will be classified into different risk categories based on their size and nature of activities. Small businesses with low risk will get simple and quick approvals, while the system of necessary technical testing and time-bound approval for high-risk projects will continue as before. With this, small businessmen will not have to go through complex processes like big industries.
Under the new system, self-certification or certification by licensed engineers, architects or other authorized professionals will be available in place of frequent departmental inspections in low-risk enterprises. This will make the permissions process faster, simpler and more accountable.
Under the Act, the requirement of renewal of license or permission every year will be abolished and a risk-based permission system will be implemented. This will provide relief to entrepreneurs from unnecessary formalities and they will be able to focus more on the expansion and operation of their business.
Registration of society or firm
Permission related to water supply for MSME units can be given on the basis of self-declaration, registration of society or firm can be given through time bound process and building permission can be given on the basis of self-certification or certificate of authorized expert. In case the concerned department does not take a decision within the prescribed time limit, the permission in eligible cases will be considered automatically approved (auto approval). However, in high-risk projects, the system of technical testing and physical inspection will remain in force.
Under the Act, 43 services provided by 8 departments of the state government have been included in the scope of the risk-based permission system. As per requirement, additional services can also be added with the approval of the Executive Council.
three-tier monitoring system
A three-tier monitoring system has been created for effective implementation of the Act. At the state level, a committee constituted under the chairmanship of the Chief Secretary and at the district level, a committee constituted under the chairmanship of the Collector will be responsible for its implementation and monitoring. Both the committees will work under the guidance of the council headed by the Chief Minister.
This reform is likely to directly benefit more than 15 lakh micro, small and medium enterprises of the state. The government believes that this system based on trust, self-declaration and time-bound services will reduce the time and cost of starting and operating a business, while the system of effective surveillance and testing in high-risk areas will continue as before.
Leave a Reply