Trade licence drive to gain momentum

Urban local bodies hope to streamline mushrooming of shops within four-month window

By Our Bureau
  • Published 13.09.18
A fast food van at Morabadi in Ranchi on Wednesday. Picture by Manob Chowdhary

Ranchi/Jamshedpur/Dhanbad: The RMC has issued 26,000 trade licences in the capital since the online application system was introduced in November 2017 and is expected to double the number by December 31 this year.

Over 6,000 commercial establishments in JNAC areas have obtained their trade licences and another 151 applications are under process. In Dhanbad, only 12,000 shops out of around 80,000 have licences. The coverage though is expected to increase with the cabinet extending the application window by four more months.

The Jharkhand Municipal Trade Licence Regulations will be effective from January 1, 2019. Those engaged in selling products and services should have a permit by then. Defaulters will be penalised at a rate of Rs 10 a day.

Ranchi municipal commissioner Manoj Kumar said they had fixed a target of 50,000. "The extended date will give us some time to convince more traders. Since November last year, we have approximately earned Rs 2 crore by issuing trade licences. We hope the figure will double."

City manager (revenue) Farhat Anishi said according to the Regulations 2017, which were enforced from November 11, 2017, every trader is expected to obtain a licence within three months of starting business.

Asked if the licence fee was a deterrent for many traders, she stressed that it was affordable.

"The annual trade licence fee ranges between Rs 300 and Rs 2,500, depending on the size of the establishment. For a 100sqft shop, the annual fee is Rs 300. There are three more brackets - 101-500sqft (Rs 500), 501-1,000sqft (Rs 1500) and more than 1,000sqft (Rs 2,500)," she said.

On whether roadside vendors too needed to procure licences, Anishi said, "Ideally yes in municipal areas, but we need clarity on the unorganised/informal sector from the urban development department."

City manager of JNAC Ravi Bharti there were around 22,000 shops and commercial establishments in their command areas and only 6,068 had licences.

"In MNAC areas, around 600 applications are pending. There are over 7,000 shops. There is lack of awareness among shopkeepers. They need to be told about benefits of a trade licence," said Rajendra Gupta, special officer, MNAC.

In Dhanbad, dearth of manpower and no online system as yet are said to be behind the slow progress.

Corporation programme officer Preetam Kumar said they tried to provide a licence within a week of application at the main office or any circle office. "One needs to submit one's Aadhaar card, commercial holding papers and the fee for obtaining the permit."

He added that they planned to hold camps with the help of the Federation of Dhanbad Zilla Chamber of Commerce and Industries to ensure more shops were covered.