Global cos raise multiple approvals issue

New Delhi: Global manufacturers such as Foxconn, Samsung, Wistron and Yazaki have raised concerns over the process of getting permission for industrial projects in India, involving multiple clearances and long response times, underscoring the need for an effective single-window system to attract big investments.Companies raised these concerns at discussions with officials of the Department for Promotion of Industry and Internal Trade (DPIIT) on the proposed single-window clearance mechanism for investments that the government has announced, officials aware of the matter told ET.“Besides multiplicity of clearances, many a time there is an information black hole when potential investors don’t know what is happening,” one of them said.DPIIT is working on a pan-India single-window clearance system called the Investment Clearance Cell for licences given by both central and state governments to attract investments and improve the ease of doing business.“Setting up a single window is a huge task,” a second official said. “It will take us six months to set it up.” Talks are on with five-six states that will be part of the system in the first phase, the official said, without identifying them. Concerns Shared with MinistriesStates with effective single-window systems will be integrated with the cell.In an internal note on the proposed single-window system, DPIIT said, “Stakeholder consultations have been held with major investors such as Foxconn, Samsung, Wistron and Yazaki, and concerns shared with concerned ministries.” 77341330Foxconn, Samsung and Wistron didn’t respond to queries. Japanese auto component firm Yazaki couldn’t be reached for comment. Wistron and Foxconn are contract manufacturers for Apple.“The longer it takes for a simpler one-stop shop for approvals to be set up, India will increasingly lose opportunities to attract investment,” an industry representative told ET. “This is something that China has had for many years.”The proposed Investment Clearance Cell will allow a one-time upload of all relevant documents and provide time-bound approvals and real-time status updates. That will preclude the need for repeated information uploads for different approvals.SYSTEM INTEGRATORA new investor has to apply to at least 13 departments to get all permissions, leading to delays. These include applications for goods and services tax (GST) registration, industrial entrepreneur memorandum, import-export codes, environment clearance, Employees Provident Fund (EPF) and Employees’ State Insurance Corp (ESIC) registration, as well as company incorporation.“We have to create one system that can speak to each existing system individually,” said the official cited first. “It is only a technology issue which is taking time.” The government plans to rope in a system integrator or an implementing agency by September 1. But a tender for this is yet to be floated, officials said.To be set up in four phases, the Investment Clearance Cell will bring all central government-related procedures and clearances into a single online form. At least 21 states, some backed by legislation for time-bound approvals, have already developed single-window portals for licences and clearances, which would be integrated with the upcoming cell. The government and industry have set up a partnership, Invest India, to handhold investment proposals.

from Economic Times https://ift.tt/31fRdQ3