Guwahati, Sept. 15: The Northeast still has a lot of catching up to become a destination that facilitates "ease of doing business", according to a report prepared by World Bank and the department of industrial policy and promotion.
The report, Assessment of State Implementation of Business Reforms, released in New Delhi yesterday, finds the Northeast in the bottom half.
Assam has been ranked 22nd, Tripura 26th, Sikkim 27th, Mizoram 28th, Meghalaya 30th, Nagaland 31st and Arunachal Pradesh 32nd and they have been clubbed in the "jump-start" category. States with an overall implementation status between zero and 25 per cent are in this group.
The study, the first-of-its-kind, has been conducted to take stock of reforms implemented by states in the period from January 1 to June 30, 2015. The data was collected through a structured questionnaire sent to each state and Union Territory.
The report captures the reforms implemented by states targeted at increasing transparency and improving the efficiency and effectiveness of various regulatory functions and services for business. Simplifying regulatory burdens on business at the state level is an important component of the ambitious Ease of Doing Business in India initiative.
"The authorities need to take serious note of the report and start taking corrective action. We should aim to be in the top five," R.S. Joshi, chairman of Federation of Industry and Commerce of North Eastern Region (Finer), said.
The report says in Assam the single-window system, property registration, construction permits, labour and environment, among others, need to be improved. In other states, authorities should focus on providing electricity connection, among other requirements, it added.
On the good practices in Assam, it takes note of the commissioning of a dedicated portal, Invest in Assam, where detailed information on various land banks along with the available infrastructure are published for ready reference. The portal also provides important URLs and links to various departments for quick access. The portal also envisages (currently under construction) providing easy access to various forms and formats for setting up a business.
On the key initiatives being implemented in Assam, the report says there has been reduction of documents for electricity connection, online filing of entrepreneur memorandum and availability of detailed information related to pollution/environment-related clearances.
"I am not at all surprised by the findings based on my experience," industrialist Abhijit Barooah said.
A source in the Assam Industrial Infrastructure Development Corporation said the ease of doing business is not only the prerogative of industry but also of labour and health agencies.
Arunachal Pradesh has partially implemented computerisation of commercial tax procedures. A businessman said the biggest hurdle for those wanting to set up industry in Meghalaya is availability of land.
"People find it difficult to set up industries because of the problem in getting land. If land is not easily available, those who want to secure finance from banks will find it difficult as they will not be able to mortgage land for the purpose."
Meghalaya has computerised the department of commercial taxes to provide online services like e-registration of VAT, e-payment of VAT and central services tax, e-filing of VAT returns and issuance of way bills, the report said.
Additional reporting by Andrew W. Lyngdoh in Shillong
