Shivraj govt allows 3 years’ exemption from all permissions for setting up industry in MP

The seventh edition of Madhya Pradesh Global Investors Summit, GIS-2023 concluded on 12 January 2023 in Indore. The two-day event witnessed a significant number of B2B and B2G meetings, vendor development programs, sectoral sessions, and one-to-one meetings of foreign delegations with leading industrialists along with the Chief Minister of Madhya Pradesh.

Investors have reposed faith in the industry-friendly environment of the state by committing an investment of Rs 15.42 lakh crore.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan, while welcoming the commitment of investors and expressing confidence in them, announced that industrial units in areas identified and notified by Madhya Pradesh government would be exempted from seeking approval for a period of three years. He also announced that no inspection would be conducted in industrial units during the said period.

On January 27, 2023, the state issued an ordinance named ‘Simplification of Establishment and Operation of Industries Ordinance, 2023’ in this regard.

Salient features as per the provisions of the Ordinance:

a) Applicability: The Ordinance will be applicable to all industrial sectors, MSMEs and IT clusters.

b) Registration: Investors will have to register themselves on the State’s Single Window System i.e. Invest Portal https://invest.mp.gov.in.

c) Intention to Invest: After successful registration, the applicant has to apply for ‘Intention to Invest’. Once the investor clarifies the ‘Intention to Invest’, he will be provided with an option to choose ‘Exemption of approval & inspection for a period of three years’.

d) Acknowledgment Certificate: After scrutiny of the ‘Intent to Invest’ submitted by the investor, an Acknowledgment Certificate will be issued.

e) Effect of the Acknowledgment Certificate: On receipt of the Acknowledgment Certificate, the investor can start the construction of the industrial unit. The investor will not be required to take any of the identified approvals during the certificate’s validity period. Also, no competent authority shall conduct any inspection in the industrial unit during the validity period of the acceptance certificate.

‘State Level Empowered Committee (SLEC): The Government of Madhya Pradesh has provided for the formation of a ‘State Level Empowered Committee (SLEC)’ under the Ordinance, which will –

i. Notify the areas within which an industrial unit is eligible to obtain a certificate of acceptance subject to being established and operated.

II. Will assist the industrial units in obtaining the Acknowledgment Certificate.

iii. In case of dispute between an industrial unit and the competent authority, it will bring about an amicable settlement.

Implementation of this investor-friendly system will help investors to start and complete construction of industrial units on the basis of the Certificate of Acceptance issued as a result of application of Intent to Invest, expeditiously and without any hindrance. This will do away with the need to seek multiple permissions, clearances or approvals from various state departments for a period of 3 years from the date of issue of acknowledgment certificate.

The entire process of applying for Intention to Invest and issuing the Acknowledgment Certificate will be done in a seamless manner with minimal human interface.

The Department of Industries will work closely with the Department of MSME and the Department of Science and Technology to create awareness about this new initiative and help investors understand the features of the provisions of the Ordinance and the process involved so that they can take maximum advantage of this initiative .

This ordinance is an important step taken by the state government for the industrial development of the state. It will reduce the compliance burden on the investors and promote mutual trust between the investors and the government.