1. EASE OF DOING BUSINESS
An initiative by Govt. of Kerala to reform the business environment in the State

2. Introduction

3. Introduction
Ease of Doing Business (EoDB) index - an index created by World Bank
Index to rate countries on 10 parameters based on different stages of the business lifecycle
Higher rankings indicate better and simpler regulations for starting, running and winding up of businesses
India’s ranking was 100 in 2017, up thirty places from 130 in 2016

4. KERALA INDUSTRY SCENARIO

5. Background
Kerala ranked in the 18th position (22.80%) in 2015 and 20th position (26.97%) in 2016 and placed in the “Jump Start Needed” category, by DIPP, GoI
Assessment done based on 285 action points in 2015, 340 action points in and 372 action points in Ranking for 2017 is under process.
RANKING
IMPLEMENTATION % ? ? 18
26.9 20
22.8
2015
2016
2017
2015
2016
2017

6. Major reforms under Ease of Doing Business in Kerala, 2017

7. The Kerala Investment Promotion and Facilitation Act, 2017
Major Reforms – An overview
First State in the Country to enact an omnibus legislation, the Kerala Government has promulgated the ‘Kerala Investment Promotion and Facilitation Act, 2017’ revisiting 7 Acts.
Amendments to 10 State Rules and issue of Government Orders to streamline clearance procedures of various Department/Agencies.
Legislative Reforms
Omnibus Act
Amendment to Rules
The Kerala Investment Promotion and Facilitation Act, 2017
The Kerala Panchayat Raj Act, 1994
The Kerala Municipality Act, 1994
The Kerala Head Load Workers Act, 1978
The Kerala Shops and Commercial Establishment Act, 1960
The Kerala Single Window Clearance Boards and Industrial Township Area Development Act, 1999
The Kerala Lifts and Escalators Act, 2013
The Kerala Groundwater (Control and Regulation) Act, 2002
The Kerala Panchayat Raj Rules, 1996
The Kerala Municipality Rules, 1997
The Kerala Panchayat Building Rules, 2011
The Kerala Municipality Building Rules, 1999
The Kerala Factories Rules, 1957
The Kerala Inter-State Migrant Workmen Rules, 1983
The Kerala Contract Labour Rules, 1974
The Building and Construction Workers Rules, 1998
The Kerala Motor Workers Rules, 1962

8. Legislative Reforms - Amendments to Acts/Rules
Abatement to nuisance – Stop Memos to be issued only as per advisory of the experts from the departments/agencies concerned
DMO clearance applicable only for hospitals, clinics, laboratories and paramedical institutions
(Ref: Section of 233(4) of The Kerala Panchayat Raj Act, 1994 and Section 448 (4b) Of The Kerala Municipality Act, 1994)
(Ref: Section 233A of The Kerala Panchayat Raj Act, 1994 and Section 449 Of The Kerala Municipality Act, 1994 )
Self-certification for Green and Exemption for White category industries from obtaining permission to construct factory
Increased validity of Trade licenses–5 years
Auto renewal of licenses based on fee payment
(Ref: Rule 12 of The Kerala Panchayat Raj (issue of License to Dangerous and Offensive Trades, and Factories) Rules, 1996 and Section 450 (j) Of The Kerala Municipality Act, 1994)
(Ref: Rule 10 of The Kerala Panchayat Raj (issue of License to Dangerous and Offensive Trades, and Factories) Rules, 1996 and Section 447 (4), (5A) Of The Kerala Municipality Act, 1994)
Henceforth all layout approvals to be provided at district levels only; Chief Town Planner to act as appellate authority
Reduction in time limits for granting consents/licenses/permits
(Ref: Section of 233(2), (2A), (3) of The Kerala Panchayat Raj Act, 1994 and Section 448 (1), (1A), (3) Of The Kerala Municipality Act, 1994)
(Ref: Rule 55, 56, 57, 58, 59, 60, 61 The Kerala Panchayat Building Rules, 2011 & Rule 53, 54, 55, 56, 57, 58, 59 of The Kerala Municipality Building Rules, 1999 )

9. Legislative Reforms - Amendments to Acts/Rules
NOC from Fire and Rescue –only for buildings with plinth area above 1000sq.m. and height above 15m, Self-certification for building falling below the criteria (except hazardous & assembly occupancy).
Increased Coverage area and FAR–increased land availability to setup/expansion of industries
Hazardous Categorization of industries in Building Rules now synced with ‘Hazardous’ category in the Factories Act 1948
(Ref: Rule 34 of The Kerala Panchayat Building Rules, 2011 )
Access road width revised for G1 and G2 occupancies
(Ref: Rule 55, 56, 58, 60 of The Kerala Panchayat Building Rules, 2011 & Rule 53, 54, 56, 57, 58 of The Kerala Municipality Building Rules, 1999 )
Sl No.
Total Floor Area
Width of access to the building as well as the width of the street giving access to the plot from the main street 01
Up to 300 square metres
3 metres 02
Above 300 square metres and up to 1500 square metres
3.6 metres 03
Above 1500 square metres and up to 6000 square metres
5 metres 04
Above 6000 square metres
6 metres
(Ref: Rule 35 The Kerala Panchayat Building Rules, 2011 and Rule 31 of The Kerala Municipality Building Rules, 1999 )
(Ref: Rule 59 The Kerala Panchayat Building Rules, 2011 and Rule 57 of The Kerala Municipality Building Rules, 1999 )

10. Legislative Reforms - Amendments to Acts/Rules
Loading and Unloading operations– No compulsion to engage registered head load workers if employers have their own manpower or machinery
Payment to be made to trade union only if they are engaged for the work.
Self-certification for factory licence from Factories & Boilers, for factories with less than 25 workers.
(Ref: Rule 3(2) of The Kerala Factories Rules, 1957)
Validity period of Factory Licence extended to 10 years
(Ref: Section 9A, 9B of The Kerala Head load Workers Act, 1978)
(Ref: Rule 7(5) of The Kerala Factories Rules, 1957)
Spot Registration under 5 labour laws
(Ref: The Kerala Shops and Commercial Establishment Act, 1960; The Kerala Inter-State Migrant Workmen Rules, 1983; The Kerala Contract Labour Rules, 1974; The Building and Construction Workers Rules, 1998; The Kerala Motor Workers Rules, 1962)
Single Window Board to have the power to issue composite license that will be binding to all departments/agencies.
Renewal of licences can now be applied through Single Window Clearance Board
Self-certification for drawing ground water below limits (quantity) fixed by the authority for the Block concerned.
(Ref: Section 7 of The Kerala Groundwater (Control and Regulation) Act, 2002)
(Ref: Section 3, 9(2), 10, 11A of The Kerala Single Window Clearance Boards and Industrial Township Area Development Act, 1999)

11. Reforms – Government Orders/Circulars
Only two documents required for obtaining electricity connection – proof of identity and proof of legal occupancy.
Consent to Operate from Pollution Control Board - Self Certification for Green Category industries.
Joint site inspections by Departments/Agencies for the issue of building permit.
Only two documents required for obtaining Trade Licence – proof of identity and proof of legal occupancy

12. Policy Reforms
Investment Promotion and Facilitation Cell (IPFC) constituted at State and District level for smooth interaction with applicants and issuing speedy approvals.
Implementation of Common Application Form and Online Single Window Clearance Mechanism which caters to approvals, licences and permits of 15 Departments and agencies.
Statewide implementation of an Intelligent Building Plan Management System for layout approvals.
Publishing of Standard Operating Procedures for clearances of concerned Departments / Agencies

13. DEPARTMENT OF INDUSTRIES AND COMMERCE
GOVT. OF KERALA
Thank You