Entrepreneurs no longer need approval, NOCs

Bhanu P Lohumi

Tribune News Service

Shimla, November 6

A day before the Rising Himachal Global Investors Meet, the state government has exempted entrepreneurs from various clearances under eight Acts and promulgated an ordinance to this effect.

The Himachal Pradesh Micro, Small and Medium Enterprises (Facilitation of Establishment and Operation) Ordinance, 2019, promulgated by the Governor, which came into effect today, aims at providing exemptions from certain inspections and approvals for the establishment and operation of MSMEs.

As the Assembly is not in session, the Governor promulgated the ordinance under clause (1) of Article 213 of the Constitution. Under the ordinance, various provisions have been cut short and any person, who intends to start an enterprise, may submit to the nodal agency “a declaration of intent to start an enterprise and on receipt of declaration, complete in all respects, the nodal agency shall “forthwith”, issue an acknowledge certificate, which will be valid for all purposes for a period of three years.

“During the period of three years or till the commencement of commercial production, whichever is earlier, no competent authority shall undertake any inspection” and no action will be taken against the official concerned for any action taken in good faith under the provisions of the ordinance.

Eight Acts, including the Himachal Pradesh Panchayati Raj Act, 1994, Himachal Pradesh Municipal Corporation Act, 1994, Himachal Pradesh Municipal Act, 1994, Himachal Pradesh Fire Fighting Services Act, 1984, Himachal Pradesh Road Side Land Control Act, 1968, Himachal Pradesh Shops and Commercial Establishment Act, 1969, Himachal Pradesh Societies Registration Act, 2006, and Himachal Pradesh Town and Country Planning Act, 1977, have been covered under the ordinance.

Entrepreneurs will get exemption from various inspections and approvals and procuring NOCs (no objection certificates).

“About 99 per cent of the industrial units functioning in Himachal are in the micro, small and medium sector. It was felt by the government that in order to attract more investment, the process of setting up and running such enterprises should be made simpler, faster and freed from unnecessary processes, procedures and approvals,” sources in the government said.

Not applicable to NOCs for purchase of land 

Exemptions will not be applicable to NOCs for the purchase of land by non-agriculturists under Section 118 of the HP Tenancy and Land Reforms Act that bar all non-agriculturists, including bona fide Himachalis, from purchasing land without the government’s permission.

‘Process simplified’

About 99% of the industrial units functioning in Himachal are in the micro, small and medium sector. “The government thought that in order to attract more investment, the process of setting up and running such enterprises should be made simpler, faster and freed from unnecessary processes, procedures and approvals,” sources in the government said.