Systematic Deregulation and Reform of Business Laws

The central government has urged states to implement a "systematic deregulation" or "line-by-line reform" of laws, aimed at simplifying the processes for businesses to open, run, grow, or exit. This initiative was discussed at the National Conference of Chief Secretaries held from December 13-15, with the aim to attract investments, create jobs, and stimulate growth.

Key Areas for Deregulation

• Restrictions on increasing women's employment.
• High electricity tariffs.
• Complex land and building zone/construction regulations.

Employment of Women

• The Centre recommends adopting zero prohibition regimes for working women, similar to countries like Vietnam, Philippines, Malaysia, and Singapore.
• Bihar prohibits women from working at night, while states like Karnataka, Maharashtra, and Telangana allow it conditionally.
• Women are barred from certain industries deemed "dangerous," impacting their potential income.

Regulatory Standards and Industry Expansion

• Rigid zoning laws and worker schedules are seen as hindrances compared to more flexible standards in countries like Japan and South Korea.
• Examples of stringent regulations include minimum road width requirements for factories and parking space regulations.
• Industrial buildings in India lose about 50% of land due to stringent building standards.

Hostel and Power Tariff Regulations

• Restrictions on setting up worker hostels vary across states, with some like Bihar not allowing them at all.
• The industrial power tariff in states like Telangana and Maharashtra is significantly higher than the cost of supply, increasing operational costs.

Administrative Challenges

• "Arbitrary" administrative actions and lack of representation and redressal mechanisms are identified as key issues.
• Short duration validity of 'No Objection' certificates for fire safety and absence of third-party certification are concerns.

Phased Approach to Deregulation

Phase 1

• Reduce compliance burden to save time and cost.
• Streamline system and process flow.
• Digitisation of processes.
• Provide incentives to key sectors.

Phase 2

• Liberalise standards and controls to improve feasibility.
• Set legal safeguards for enforcement.
• Reduce tariffs and fees for government utilities.
• Use risk-based regulation involving third parties.