Ajay Shankar Committee on Replacing Multiple Prior Permissions

Telangana, the newest state, has become the first state in the country to make faster clearances a statutory right.

  • Government-constituted expert committee to examine the Possibility of Replacing Multiple Prior Permissions with Pre-Existing Regulatory Mechanism had submitted its recommendations
  • The 11 member committee was headed by Ajay Shankar, Former Secretary of Department of Industrial Policy and Promotion (DIPP)
  • The expert committee was constituted by DIPP in April 2015

It was tasked to:

  1. Examine the possibility of replacing multiple prior permissions with a pre-existing regulatory mechanism
  2. Recommend a framework of the proposed regulatory mechanism and draft proposed legislation
  3. Identify safeguards for replacing the system of prior permission and integrating them in the proposed regulatory mechanism

Recommendations:

  • Introduction of credible third-party certification in most areas of regulation to cut down on multiple permissions needed by investors
  • Adopting global best practices for emission norms in order to promote ease of doing business in the country
  • Need for a standing institutional mechanism within the government for an independent regulatory impact assessment

For start-ups:

  • Steps like Greenfield development and earmarking of mixed land use redevelopment should be undertaken
  • Start-ups must be exempted from the requirement of seeking building plan approvals would give a boost to the ecosystem
  • Any inspection of a start-up in cases of actionable complaints should be done only with the permission of an officer at a sufficiently higher level

Environmental Issues:

  • Ministries of environmentally sensitive sectors should join with the Ministry of Environment and Forests to prepare a 20 year perspective geographical plan
  • This plan must indicate preferred locations in prioritised categories for their anticipated projects in order to minimise the negative impact of environment

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