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DIPP’s Shankar Committee recommendations on Replacing Multiple Prior Permissions

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Department of Industrial Policy & Promotion (DIPP)’s expert committee to examine the possibility of replacing multiple prior permissions with pre-existing regulatory mechanism has submitted its recommendations aimed at promoting ease of doing business in the country.

  • In order to make India as one of the most attractive investment destinations, the 11 member committee headed by Ajay Shankar recommended to create an investor friendly pre-existing regulatory framework replacing multiple prior permissions with adequate safeguards.

DIPP’s Shankar Committee recommendations on Replacing Multiple Prior PermissionsOther Recommendations:

  • Introduction of credible third-party certification in most areas of regulation.
  • Adoption of global best practices for emission norms.

For start-ups – Earmarking of mixed land use redevelopment or Greenfield development and exempting them from the requirement of seeking building plan approvals.

  • Special dispensation of complying with labour laws on their own without being subject to inspection for a period of three years or till their workforce exceeds 100, whichever is earlier.
  • Inspection of a start-up should be done only with the permission of an officer at a sufficiently higher level.

Suggestion to Ministries of environmentally sensitive sectors:
Sectors such as power, petrochemicals, pharma and steel should join with the Ministry of Environment and Forests and prepare a 20 year perspective geographical plan in order minimize negative impact of environment.